19 july 2019

Central Asia news

Kyrgyzstan: Roza Otunbaeva approved the nationalization of AsiaUniversalBank

08.06.2010 13:54 msk


On June 7 Roza Otunbaeva, the head of interim government of Kyrgyzstan, signed the decree on nationalization of AsiaUniversalBank, one of the biggest banks in the republic, closely affiliated to the son of the overthrown president Bakiev.

The deputy Prime-Minister Azimbek Beknazarov informed that this bank "had the accounts of many ministries, agencies and $300 million loan from Russia". It has to be mentioned that the previous regime forces biggest clients, state structures, including the Development Fund, to open the accounts in this bank.

According to the decree, bank is nationalized "with the purpose to ensure the stability of banking and payment systems, not to allow social tensions, preserve the assets in the interest of the depositors and creditors, and prevent the deterioration of financial condition".

According to Beknazarov, the owner of 66 percent of bank’s shares Michael Nadel, wanted by Prosecutor General’s office of Kyrgyzstan, "founded the bank thanks to corporate raid", says RIA Novosti.

The official sources report that within one day after the coup the bank’s assets dropped by twice. On April 7 the bank’s assets reached over 24 billion som ($533.3 million) while on the next day the size of assets shrank to 13.5 billion som ($300 million). The outflow of funds was processed by legal entities, non-residents.

"At the moment, nearly all AUB top managers are on remand for economic crimes, related to Maxim Bakiev", Interfax quotes Beknazarov.

In order to control the capital flow and preserve assets National Bank of Kyrgyzstan introduced interim management in AsiaUniversalBank, Issyk-Kul bank, KyrgyzCredit Bank, Manas Bank and Akyl bank.

OJSC AsiaUniversalBank was registered on August 22, 1997 in Kyrgyz Republic as the subsidiary company of International Business Bank, Western Samoa. In 1999 it was bought out by new shareholders.