One of the largest banks in Kyrgyzstan AsiaUniversalBank (AUB) has been nationalised by the head of the country’s interim government, Roza Otunbaeva.
In a statement released by the Kyrgyzstan government, the bank was nationalised “to ensure the stability of banking of payment systems; not to allow social tensions; to preserve the assets in the interest of the depositors and creditors; and to prevent the deterioration of the financial condition”.
This comes at a time when Kyrgyzstan has been blighted with civil and political unrest, which has also lead the current interim government to accuse the previous senior management of AUB of corruption.
“At the moment, nearly all AUB top managers are on remand for economic crimes,” Kyrgyzstan’s deputy prime minister Azimbek Beknazarov comments.
Furthermore, the state-run National Bank of Kyrgystan also introduced interim management to four more banks in the country, including Issyk-Kul Bank, KyrgyzCredit Bank, Manas Bank and Akyl Bank.
According to a statement issued by the Kyrgyzstan government, the management changes at the banks were implemented “in order to control the capital flow and preserve assets”.
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