Afghan bank says it is on solid financial footing

AP News
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Posted: Jul 11, 2011 2:04 PM
Afghan bank says it is on solid financial footing

Afghan lawmakers seek assurances that Azizi Bank _ one of the nation's top lending institutions _ is on solid financial footing and not facing collapse like the corruption-ridden Kabul Bank.

Bank officials said Monday that rumors of liquidity problems were baseless. They offered to open the bank's books to auditors. Bank official Fraidoon Mohtasheme says the accusations are politically motivated.

The financial condition of Azizi Bank is important because Kabul Bank's near demise due to mismanagement and questionable lending has left the nation in financial crisis. The International Monetary Fund's displeasure over how the Afghan government has handled the Kabul Bank crisis has put billions of dollars in foreign aid at risk.