March 26, 2017

Afghani Bank Directors Forced to Resign

Today Afghanistan’s President Hamid Karzai ordered the Afghani Central Bank to takeover the management of Kabul Bank, a private Afghani bank with branches throughout the country that has received over $1 billion in deposits.

President Karzai ordered the bank’s two directors to resign yesterday, due to excessive personal loans worth tens of millions and also purchasing over $160 million worth of property in Dubai for insiders, including the President’s brother Mahmood Karzai, who said today he would cooperate and move out of his Dubai villa, which will be sold along with the other Dubai properties and returned to Kabul Bank.

The Washington Post reports that since Afghanistan does not have the FDIC or any type of bank insurance, the installation of management will hopefully prevent a run on Kabul Bank and an economic disaster.

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