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Afghanistan Central Bank Governor Fitrat resigns citing death threats

June 27, 2011‐ Virginia, USA

Abdul Qadeer Fitrat, the Governor of the Central Bank of Afghanistan, Da Afghanistan Bank, has announced his resignation to his post citing death threats in regard to the investigations on corruption by Kabul Bank. He announced his resignation from United States saying he will stay there for some time and said he feels Afghanistan is no longer safe. The announcement of his resignation was sent as email to media and in telephonic interviews to the Afghan press.

Kabul Bank, a private bank in Afghanistan gave huge loans to well-connected individuals including those of politicians. The loans are given without following any basic procedures, in some cases even without any proper documentation. The funds of these loans have made ways into political funding, buying properties in Dubai and elsewhere and became irrecoverable by the bank. The terms are wage and the loans are almost interest free. The bank is still trying to recover but with an almost endless queue of customers who are standing outside withdrawing cash from their accounts, the task became almost impossible for the bank to survive.

Fitrat says high level politicians are responsible from not bring out the news of the failure of the bank. Fitrat appeared before the Afghan Parliament in April this year and suggested that the wrongdoers have to be prosecuted. Fitrat's opponents how ever say the central bank failed to alert and act on time. About a week days ago, the IMF said Government has to be more serious in its restructuring plans and has withheld aid to the Government.

Fitrat took the post of being the Governor of the central bank in 2007.

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