NBT has extended the authority of temporary administration in OJSC “Tojiksodirotbank”

As it was informed earlier, the Temporary Administration was established in OJSC “Tojiksodirotbank” for the term of three months by the Decision of the National Bank of Tajikistan’s Board as of May 18, 2016 due to failure in observance of banking legislation requirements, legal statutory acts, ineffective risk management as well as credit and liquidity risks and revealed financial shortages, violation of prudential standards by the OJSC “Tojiksodirotbank” and with view of financial rehabilitation of the Bank. At the same time, representatives of the Temporary Administration in five regional branches OJSC “Tojiksodirotbank” have been appointed, who supervise branch’s activities.

For the first three months of Temporary Administration’s functioning it was realized significant work on rehabilitation and stabilization of bank’s activity and achieved following results:

- it was implemented daily supervision of bank’s current activities and ensured transparency for efficient decision making;

- special team on repayment of loans, including problem loans was created by the instruction of Interim Administrator. The result of their successful work is repayment of loans and their interests for total amount of TJS 41,5 million and interest on loans that in total makes TJS 56,1 million. These means, primarily, were directed for repayment of prior commitments of the bank, particularly, timely repayment of payroll projects through payment cards for total amount more than TJS 7,5 million, it means that more than 30 thousands of clients have received their wages;

- in the framework of provided explanatory work with individual and legal entities, holders of accounts with the bank, it was signed contracts for extension of actual deposit accounts term, including time deposits and revised interest rates thereupon of more than 909 depositors for the total amount of TJS 133,4 million;

- work on cost optimization, reduction of operational and administrative expenses is under way.

At the same time, it is necessary to undertake adequate complex and institutional measure for ensure regular and sound operations of the bank, implementation of which requires additional time and improvement of corporate governance, including strengthening of management.

The main priority for the moment is immediate full-scale rehabilitation of “Tojiksodirotbank” through its recapitalization and realization of dynamic actions in terms of problem loans refunding and timely repayment of bank’s liabilities owed to depositors and creditors, as well as renewal of its operation as a full-featured competitive systemic bank.

For this purpose, the National Bank Tajikistan continues the dialogue with EBRD, also it plans to involve EBRD jointly with the IMF and the World Bank for development of integrated supporting banking sector program of Tajikistan.

Therefore, the Board of the National Bank of Tajikistan approved the decision on prolongation of Temporary Administration term in OJSC “Tojiksodirotbank” for 3 months, which should promote full-fledged rehabilitation of bank’s function.

Press Division
NBT