Kabul Bank Trouble Continues

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KABUL, AFGHANISTAN (GaeaTimes.com)- The repeated assurance from the government officials on Saturday failed to make any impact on Afghans who continued to withdraw huge amount of dollars and Afghan currency from Kabul Bank. Although the government officials tried to assure the frightened Afghans that their money was safe with Kabul Bank, crowd thronged at the bank in the capital on Saturday saying that they have lost their faith on the establishment.

The sudden surge to withdraw money from Kabul Bank set in after a change in its leadership recently. Reports came up that thousands and millions of dollars has been lent by Kabul Bank to political stalwarts to invest in dicey real estate investments business. This has led people to question the financial competence of the bank and also question its leadership. Mohammad Nawaz, head of an Afghan aid group, who turned up on Saturday to withdraw around $15,000 from Kabul Bank said to media sources that the Bank has lost the “trust of the people”. He held that the resignation of the chairman of the company has made people concerned about their deposits.

The situation of the Kabul Bank has become a major concern not only for the customers but also for the Government. Reports claim that, in the unstable nation which is plagued with not only Taliban insurgency, but also with drug trafficking and aid money plundering, Kabul Bank pays a major role in providing pay for Afghan Public servants, police and soldiers. To ease situation a bit, the Afghanistan’s central bank is working with Kabul Bank. However, the U.S. officials have insisted that the United States is not trying to help out the bank.