None of top managers of Tojiksodirotbonk (TSB) and Agroinvestbonk that have been experiencing financial problems since 2016 were prosecuted, officials from the Agency for State Financial Control and combating Corruption told reporters in Dushanbe on February 11.  

Answering the question from Asia-Plus news agency, anticorruption agency director Sulaimon Sultonzoda said that “800 objects of movable and immovable properties to a total value of 900 million somoni were seized from Agroinvestbonk’s creditors.”  

“The seized properties will be put up for auction and proceeds from their sale will be used for reparation of financial damage made to the bank,” Sultonzoda said.  

Recall, Tojiksodirotbonk and Agroinvestbonk have been experiencing financial problems since the beginning of 2016, and therefore cannot fully meet their obligations to customers.

In 2017, the government provided financial assistance to these banks.  Tojiksodirotbonk received a total of 2 billion 250 million somoni, and Agroinvestbonk - 1 billion 70 million somoni.

State support is granted for a five-year term at 2% per annum.  In 2018, the banks had to return 5% of these funds, this year - 20%, and in subsequent years - 25% each.

Banks pledged to simultaneously improve their financial condition, in particular by attracting additional investments.

In early December 2018, an official source at TSB said Chinese Railway Corporation Junan is expected to acquire a controlling stake in the bank.  The Chinese company reportedly can invest some 200 million U.S. dollars in TSB, while TSB’s current capital is little more than 300 million U.S. dollars.  According to him, an appropriate preliminary deal for the Chinese Railway Corporation to acquire a 70 percent stake in TSB has already been signed.

He further noted that the bank was conducting negotiations with some other possible investors as well.  “Among them are Russia’s VTB and business structures from Hong Kong, Malaysia and Slovakia,” the source added. 

Saudi Investment Group (SIG) has also agreed to buy a controlling stake in TSB.  The deal for SIG to acquire a 51-percent stake in TSB was agreed in principal in May last year.  The preliminary agreement was signed here during a visit of a group of Saudi entrepreneurs to Dushanbe to get acquainted with opportunities of investing in Tajikistan’s economy.  The document was inked by TSB head Tojiddin Pirzoda and SIG top manager Al-Waleed Al-Dahash Al-Twaijry.

The government now owns 85.9 percent of the shares in Tojiksodirotbonk.  Before that, 58.89 percent of TSB’s shares had been owned by Closed Joint-Stock Company (CJSC) Evraziya (Eurasia), 11.65 percent by Melodiyon LTD, 10.99 percent by Ehson LTD, 7.38 percent by Media Plyus (Plus) LTD and 1.11 percent by Vostok LTD. 

TSB was established in December 1990 as the Tajik branch of the Vnesh Econom Bank of the former Soviet Union, and it initially specialized in trade and import-export banking.  Later this branch was reorganized into a Joint-Stock Commercial Bank “Tajikvnesheconombank”. In June 1999 the bank was renamed and registered as Tojiksodirotbonk or TSB.

Headquartered in Dushanbe, TSB has 11 branches in the main cities of Tajikistan and covers all regions of the country.        

As of May 1, 2018, assets on TSB’s books reportedly include the bank headquarters in Dushanbe, 43 branches across the country, Closed Joint Stock Company (CJSC) Dushanbe Mall (Tajikistan’s largest shopping mall, which is home to the country's first ever hypermarket to be part of the French Auchan chain), Tajikistan Hotel in Dushanbe, eight nine-story apartment buildings in Danghara district (Khatlon province), spinning mills in Danghara and Farkhor districts (Khatlon province), cotton ginneries in Khatlon province, and auto-repair enterprise.

Founded in 1992, Agroinvestbonk, with headquarters in Dushanbe, is now 87.3 percent government-owned as a result of the bailout program.  It has main branches in Khorog, Khujand, Kulob and Bokhtar and more than 60 other branches across the republic.  In 2012, the government made a decision on recapitalization of Agroinvestbonk and injected 700 million somoni in the bank.  200 million somoni went to replenishing the bank authorized capital stock and 500 million somoni were assigned for the swap.

According to data released by the government, the list of Agroinvestbonk’s assets includes more than 730 objects located in different regions of the country.  Among them are the main office of the bank, 60 buildings of its branches, 5 service centers. Also, this bank owns recreation areas in the Varzob gorge, various small production facilities, farms, warehouses, gas stations and car services, shopping centers.  The list also includes shops, pharmacies, cafes, consumer services centers, numerous apartments and residential buildings.