KABUL - The central bank said on Monday that $135 million of the loans issued by the New Kabul Bank had been recovered, but the sale of properties purchased abroad with the debts remained a challenge.

Addressing a news conference in Kabul, Da Afghanistan bank governor said they had recovered $180 million of the $980 million loans. The recovery includes $45 million interest that was viewed off by President Hamid Karzai.

Noorullah Delawari said some organizations, which had received loans worth $398 million from the bank, had promised to return them soon. He put problematic loans, involving assets in foreign countries, at $401 million.
"Since there are problems in recovery, in cooperation with the Attorney General Office (AGO), we are sending individual default cases to judicial organs," the governor added. He promised the defaulters would not be named until court verdicts were handed down.

One audit official identified the sale of defaulters' off-shore assets as the stumbling block to resolution of the ailing bank's problems. Abdul Hamid Mohibi said: "Selling the high-price properties bought with Kabul Bank loans inside and outside the country is a huge difficulty for us..."

"Properties in Dubai were purchased at high prices, but their rates have considerably declined over the past two years," he said, hinting a similar problem with regard to the sale of properties inside the countries.

Some elements were hindering the sale of the bank's assets at the Hairatan Dry Port in northern Balkh province, he explained. A high-powered delegation had reached an agreement on the sale with Afghan traders, who later backed out of their decision. (Pajhwok)