DUBAI, UNITED ARAB EMIRATES - As depositors thronged branches of Afghanistan's biggest bank, President Hamid Karzai told Afghans on Thursday not to panic shortly after his brother, a major shareholder in the beleaguered Kabul Bank, called for intervention by the United States to head off a financial meltdown.
"Kabul Bank is safe," Karzai said at a joint news conference at the presidential palace in Kabul with Defense Secretary Robert M. Gates. "People need not panic, need not be worried."
Earlier in the day, Mahmoud Karzai voiced concern over Kabul Bank's ability to withstand an onslaught of depositors demanding their money back. "America should do something," he said in a telephone interview. He suggested that the Treasury Department guarantee the funds of Kabul Bank's clients, who number about 1 million and have more than $1 billion on deposit with the bank.
The rush to withdraw funds from Kabul Bank, which handles salary payments for soldiers, police and teachers, began Wednesday, a day after news that Afghanistan's Central Bank had removed the bank's top two executives and installed a Central Bank official as chief executive.
Depositors withdrew $85 million Wednesday and $109 million Thursday, leaving Kabul Bank with about $300 million in liquid cash, said the bank's ousted chairman, Sherkhan Farnood.
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4 comments:
I wonder how much of that is opium trade/Taliban/Al Qaeda money...more then likely most of it.
How funny.... "America must do something"....why? Because your brother is the country's BIGGEST drug lord...because YOUR bank officers are theives?? because you are using the depositors money as your personal bank account?? How is ANY of that our problem? And Karzai is playing both sides, too. He's a two-faced snake, likely responsible for the death of mor than a few American soldiers. I have no doubt that Karzai has a Swiss bank account worth hundreds of millions. And further, I have no doubt that the American authorities know he has it, too. Let them get out of THIS one by themselves...
Totally agree with you 1047-Karzai has been playing both sides for years, and his brother is a known drug runner(with CIA ties). The moment the USA pulls out, that so called afghanistan gov't will fold inside of 2 weeks. He has no support from his own countrymen, because they know he's a crook. In due time, he'll be out of "office" one way or another.
Most of the opium money is in American banks and the American stock market. That is simply a fact.
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