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IMF Recommends Troubled Kabul Bank Be Wound Down


Afghanistan's central bank took control of Kabul Bank in mid-September.

Afghanistan's central bank took control of Kabul Bank in mid-September.

The International Monetary Fund (IMF) says Afghanistan's troubled Kabul Bank needs to be placed into receivership and then quickly sold.

The IMF said in a statement that placing Kabul Bank into receivership -- a type of bankruptcy -- is "the most appropriate mechanism" for resolving problems there.

The statement calls on Afghan officials to lay out clear steps to deal with Kabul Bank and safeguard the financial system.

The IMF also urges the authorities to prosecute those involved in fraud or other illegal activity at Kabul Bank.

Afghanistan's central bank took control of Kabul Bank in mid-September.

The bank has close ties to Afghanistan's ruling elite.

compiled from agency reports
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