This content is not available in your region

Assets frozen as Kabulbank feels the heat

Assets frozen as Kabulbank feels the heat
Text size Aa Aa

Afghanistan has frozen the assets of leading shareholders and borrowers of Kabulbank, the country’s crisis-hit top private bank.

Among those affected are the bank’s chairman and CEO who quit last week amid a brewing corruption storm.

There was a run on the bank last week as uncertain customers rushed to withdraw their money.

One customer interviewed at a branch in the capital said that he wanted his money back now but might consider reopening his account if the bank could get back its credibility.

It is alleged that Kabulbank’s chairman invested hundreds of millions of dollars in risky real estate investments in Dubai.

Fears remain over the bank’s solvency, and – with it handling the pay of Afghan civil servants, soldiers and policemen – the situation is also a cause for concern in political and diplomatic circles.