Delawari holds talks with IMF, WB, US Treasury officials

WASHINGTON (PAN Bank and the US Treasury officials on technical assistance to the bank and enhancing co-operation with the US in counter-terrorism financing.

On his first visit to Washington after taking over as the governor of the central bank, Delawari said the meetings were productive and satisfactory. “The purpose of my trip was to review the working relationship with the IMF, World Bank and the Department of Treasury,” Delawari told Pajhwok Afghan News in an interview.

 “We have ongoing programs of technical assistance to the Central Bank. We work with IMF to maintain strong monetary policy in Afghanistan,” the governor said at the conclusion of the three-day official trip to Washington.  “I found the meetings productive,” he said, adding that Afghanistan has asked for technical assistance from these organizations.

Responding to questions related to Kabul Bank, the governor said the central bank is in process of recovering in the “very near future” 20 percent of the money spent on the bail out of the bank, by selling properties in Afghanistan as well as in Emirates and Dubai. “And we have rescheduled 60 percent of the outstanding loans and that would be recovered under term loan agreement from one to five years,” he said, adding that the Central Bank is working to identify and recover some 20 percent of the missing money or loan with the borrowers.

 “The whole purpose was to discuss these matters personally. I gave them assurance that the Central Bank is in the process of taking care of problems,” he said, adding they have also introduced amendments to the existing banking law to close some loopholes that they discovered. It is these loopholes that resulted in the Kabul bank fiasco, he noted.

Noting that the Financial Intelligence Unit in Afghanistan has been established with the help of the US Department of Treasury to prevent money laundering and prevent the use of banks for illicit purposes, Delawari said. He discussed with American officials to continue those relationships. “We have asked them to continue this support. It is important to us and also to the region as well,” he said.

As the new head of the Central Bank, he said, he has set the goal of maintaining an effective control and supervisions of the commercial banks and maintain a sound monetary policy. “I am committed to ensure that we have a sound banking practice,” Delawari said.

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