On OJSC "Tojiksodirotbank"

In accordance with Law of the Republic of Tajikistan "On the National Bank of Tajikistan", Law of the Republic of Tajikistan "On banking activity" and Law of the Republic of Tajikistan "On liquidation of credit institutions" the license of OJSC "Tojiksodirotbank" was revoked by the Resolution of Board of the National Bank of Tajikistan dated from May 21, 2021 (No. 89).

According to the Resolution of Board of the National Bank of Tajikistan, all transactions with cash and non-cash funds, transfer of funds from one account to another, transfer and alienation of assets and property of OJSC “Agroinvestbank” are prohibited until a special administrator is appointed.

Despite the continued support of Government of the Republic of Tajikistan through capitalization of OJSC "Tojiksodirotbank" (2016) its financial situation was not improved and, unfortunately, the stability of the bank was not ensured.

Repeated shortcomings and their untimely elimination in the financial activities of OJSC "Tojiksodirotbank" have become systemic in nature, and an imperfect corporate governance system, professional incompetence of managers and officials, failure to comply with modern management principles, weak risk control system, compliance and internal audit, failure to comply with loans assessment and issuance, and business processes principles, inadequate activity of committees, including the audit and risk committee, asset and liability management committee, credit committee, etc., the availability of human factors in the decision-making process and interference in the organizational structure of the bank led to the fact that OJSC "Tojiksodirotbank" from the position of a systemically important bank has turned into a credit institution with an insignificant share in the banking system. For these reasons, the financial indicators of OJSC "Tojiksodirotbank" are becoming more and more negative and the Bank does not have sufficient capacity, opportunities and resources to continue its activities. The quality of its assets is gradually declining, most of which are not related to banking activities, the sale of collateral and repayment of loans in cash is at a low level, and standards set by the National Bank of Tajikistan over the past several years have not been complied.

At the same time, an increase in the number of complaints and appeals led to a decrease in public confidence in the Bank and banking system as a whole. Considering these factors in connection with the insolvency of OJSC "Tojiksodirotbank", the Board of the National Bank of Tajikistan has decided to revoke the license of OJSC "Tojiksodirotbank".

In accordance with the procedure established by the Law of the Republic of Tajikistan "On liquidation of credit institutions", a special administrator is appointed by a court decision, and from the moment a special administrator is appointed, the powers of the management bodies of a credit institution (general meeting of shareholders, supervisory board, board, chairman) shall be terminated and transferred to a special administrator and he is the only legal representative of OJSC "Tojiksodirotbank".

The special administrator, within the framework of his powers, promotes the alienation (sale) of the Bank's assets and the distribution of funds in the interests of depositors and creditors in the manner prescribed by this Law.

In accordance with the established procedure, jointly with the revocation of the license, 64% of total number of insured depositors of OJSC "Tojiksodirotbank", i.e. 3,5 thousand people will receive a full refund from the Individuals Saving Insurance Fund and 36% of other depositors – 2 thousand people will receive a partial refund from the Fund. The rest of the deposits of individuals and legal entities will be repaid through the sale of the bank's own funds, which are put up for sale by a special administrator and paid to customers in accordance with the established procedure.

Press Division