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KABUL : Afghanistan's central bank said Monday it was willing to offer loans to bail out troubled Kabul Bank as nervous depositors continued taking out their savings.
Hundreds of customers have been queuing at branches across the country for several days, emptying their accounts amid fears that Afghanistan's largest private bank was collapsing largely due to illegal withdrawals by its owners.
Emal Ashore, a spokesman for the Afghanistan Central Bank, dismissed Western media reports that the government had approved a 200 million dollar loan to Kabul Bank but said it was "ready to provide loans".
"I dismiss that the Central Bank has requested a 200 million dollar loan (from the government) to the Kabul Bank. But we are ready as per the laws to provide loans to the Kabul Bank, if it requests," Ashore told AFP.
"As the biggest loan-providing institution we, the Central Bank, are ready to provide loans to the Kabul Bank," he said, refusing to give any further details.
Afghanistan's finance minister and the governor of the Central Bank were due to hold a press conference later on Monday to "make some key announcements", the spokesman said.
Customers continued to form long queues at Kabul Bank branches in all major cities, however, with depositors demanding their savings.
"I don't trust this bank anymore," said one client coming out with 100,000 dollars from a branch in the northern city of Mazar-i-Sharif.
"I took all my money out," he said, smiling.
In the western city of Herat hundreds of men and women had been waiting in long lines behind Kabul Bank's biggest branch since early morning, hoping to withdraw their money.
Security was tight with extra guards manning the entrances of the each branch.
Kabul Bank has been the subject of reports alleging large-scale corruption by executives. Assurance by President Hamid Karzai, his ministers and the governor of the Central Bank insisting the bank remains solvent has not persuaded worried savers leave their money in the bank.
- AFP /ls
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