IMF recommends troubled Kabul Bank be wound down

[February 16, 2011]  KABUL, Afghanistan (AP) -- The International Monetary Fund is recommending that Afghanistan's troubled Kabul Bank be placed into receivership and then quickly sold off.

The IMF made the recommendations in a statement late Tuesday, following a visit by fund officials. It says Afghan authorities should put together a "transparent, credible and fully financed" plan to settle problems at the country's largest bank. The IMF says placing Kabul Bank into receivership -- a type of bankruptcy -- is "the most appropriate mechanism" for resolving problems at the bank. Kabul Bank has been hounded by allegations of mismanagement, cronyism and questionable lending. Afghanistan's Central Bank took control in mid-September, following a run on the lender. [Associated Press] Copyright 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.