by Suliman Faizi

Sale of Kabul Bank Assets Challenging, Receivership Says

8 years ago | Posted in: Business | 607 Views

Kabul Bank’s receivership manager on Thursday said that the efforts to auction the bank’s properties as soon as possible are happening both inside and outside the country, but the asset sale is challenging.

Hamidullah Mohebbi said Kabul Bank currently holds eleven properties worth more than 119 million Emirati Dirhams (US$32.4 million) in Dubai.

Following President Karzai’s order on Wednesday for urgent action of the Kabul Bank assets still pending sale, as well as the sale of the properties of its former shareholders in Dubai, Mohebbi said the receivership managers were making a serious effort for enact this order, given little had been done on these properties since the beginning of the bank’s crisis two years ago.

He said that in the first step, the properties of its former shareholders in Dubai will be put into auction.

“We are putting a lot of effort into asking from Dubai Land Department for a close date, but it depends on them. They fix the auction date and the mechanism of sale according to their rules and systems. This is related to them according to the laws in Dubai. We will try our best to have it sooner,” Mohebbi told TOLOnews Thursday.

Currently, of the eleven properties worth 119.6m dirhams in Dubai, according to Dubai Land Department prices, three are being sold: one worth 22.5m dirhams ($6.1m), another for 30.8m dirhams ($8.4m) and a house worth 10.7m dirhams ($2.9m). Another eight properties of Kabul Bank’s shareholders will be put to auction with help of Dubai’s governmental institutions.

However the outcome for Kabul Bank’s properties in Afghanistan are not clear with few willing buyers, Mohebbi said.

“Nobody so far is willing to buy any of the properties. We are facing this problem. We will soon reannounce prices for some of the properties to be purchased,” he said.

Of the fourteen cases of those who received group loans from Kabul Bank, nine have been sent to the Financial Disputes Resolution Commission, cases which are mostly of Kabul Bank’s shareholders. There are another fifty cases of those who have received loans from Kabul Bank without any assurance, a list of which has been sent to the president’s office.

“A few days ago, we sent to the Office of Administrative Affairs and the president’s office a list of those identifying those who have received loans, as well as their company names, and the amount they have paid back so far,” said Noorullah Delawari, Governor of Da Afghanistan Bank.

President Karzai ordered on Wednesday for all Kabul Bank’s assets to be returned or sold within one month.

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