Kyrgyz govt to nationalise largest commercial bank

Kyrgyzstan will nationalise the country's largest commercial bank, the country's interim government said.

Kyrgyz govt to nationalise largest commercial bank

 

Kyrgyzstan will nationalise the country's largest commercial bank, the country's interim government said on Monday, to help restore assets it says were stolen in the revolt that toppled the previous leadership.

Kyrgyzstan's central bank and finance ministry will assist AsiaUniversalBank (AUB) in meeting its obligations to investors, the interim government said in a decree published on its website, www.kyrgyz-el.kg.

The government of the Central Asian republic, led by Roza Otunbayeva, says AUB lost nearly half of its assets in a single 24-hour period when a popular revolt toppled President Kurmanbek Bakiyev.

The central bank says AUB's assets declined to 13.5 billion som ($293 million) from 24 billion som in a 24-hour period between April 7 and April 8, immediately after the revolt forced Bakiyev to flee the capital.

Abdymalik Myrzayev, acting head of the central bank, told reporters that AUB's difficulties had caused problems across the entire banking sector in Kyrgyzstan, where 22 commercial lenders operate. But he said the situation was not critical. AUB has more than 87,000 clients and accounts for about 17 percent of all bank accounts in Kyrgyzstan.

Bakiyev, who is in exile in Belarus, has not commented on the interim government's allegations linking his family to the disappearance of the bank's assets.

Reuters

Last Mod: 08 Haziran 2010, 03:15
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