Larger than usual crowds gathered to withdraw funds from
Afghanistan's largest bank Wednesday and Thursday after two top executives resigned
amid allegations of mismanagement and unorthodox real estate loans.
"The Kabul Bank is safe," Karzai said in a news
conference with visiting US Defense Secretary Robert Gates.
Afghan Finance Minister Omar Zakhilwal echoed that
message, saying that fears about the stability of Kabul Bank had not sparked a
"crisis" at Kabul Bank.
"We are 100 percent sure that Kabul Bank is
safe," Zakhilwal said. "I, as finance minister, am giving you my
guarantee that your money is safe - if it's one Afghani, one dollar, one euro,
up to millions. ... Kabul Bank is not in danger." Afghan television
stations broadcast remarks Wednesday night from the central bank governor,
Abdul Qadir Fitrat, who insisted that Kabul Bank was solvent and had enough
liquidity to meet demands. On Thursday, the Afghanistan Banks Association
issued a statement of support for the bank, and Zakhilwal sought to reassure
customers that their deposits were safe.
"The government of Afghanistan guarantees that every
penny that they have deposited will be paid back to them if they request
it," he said."But what we are requesting of the Afghan people is not
to rush because rush is not good for them, and it's not good for the banking
system. We guarantee the money." Some customers went anyway.
Nazifa Amiri, who works for a foreign aid agency in
Kabul, said problems with the bank would have an especially devastating effect
on poor Afghans like herself.
"I need this money to feed my children, plus we have
the festival coming up," said Amiri, referring to next week's celebration
of the end of the Muslim holy month of Ramadan.
Amiri successfully drew her monthly salary of $390 from
the bank's branch in Kabul's Wazir Akbar Khan neighborhood.
However, Defense Ministry employee Mohammad Zami said he
had been rebuffed when attempting to withdraw dollars from his account at the
same branch, with managers saying more currency was on its way.
"I don't have a lot of money in it, but this is
supposed to be a trustworthy bank to serve the Afghan people. It's not good to
see it tied up in politics," Zami said.
A branch manager, who declined to give his name because
staff had been ordered not to speak to media, said dollar stocks ran out about
one hour after opening, although supplies of Afghan currency were sufficient to
meet demand.
Shah Masood Azha, a businessman in the southern city of
Kandahar, said residents remained worried about the safety of their accounts.
"This is a result of poor oversight, and the
government needs to have many more checks and balances," Azha said.
Problems at the bank could have wide-ranging political
repercussions since it handles the pay for Afghan teachers, soldiers and police
in this unstable, impoverished nation beset by the stubborn Taliban insurgency,
widespread drug trafficking and plundering of aid money.
The Finance Ministry issued a statement assuring
government employees that they would continue to be able to deposit and
withdraw their salaries at Kabul Bank. The statement added that the replacement
of top executives would improve management and services and was "part of
the life cycle of a business." The bank's woes also tie into the web of
corruption and personal connections that has soured many Afghans on their
government.
Gen. David Petraeus, top commander of US and NATO forces
in Afghanistan, was asked about Kabul Bank's woes at a round-table with
reporters on Thursday.
"I'm not really the guy in the financial sector here
in Afghanistan but financial issues can have security issues and therefore we
keep an eye on them," Petraeus said. "In this case our assessment is
that the governor of the central bank has taken prudent measures. He has
announced what it is that he has been doing to reassure depositors ... Our
sense is that he and the minister of finance have taken a very prudent course,"
that should reassure depositors. "I think this will be OK."
A US official, speaking on condition of anonymity because
he was not authorized to speak to the media, said that while the United States
was providing technical assistance to the Afghan government, it was taking no
steps to recapitalize Kabul Bank.
Sherkhan Farnood, former chairman of Kabul Bank, and
Khalilullah Ferozi, former chief executive officer, resigned because, under new
reforms, only banking professionals can hold the top operating positions at
banks. The bank is being run by Masood Ghazi, a former official at the central
bank. The bank said top executives at some of Afghanistan's other 16 private
banks might have to step aside as well to conform with the reforms.