05/05/17 – Tajikistan’s Banks in Trouble

The Tajik banking sector continues to struggle as Agroinvestbank, Tajikistan’s largest lender, has been forced to limit the amount of cash customers can withdraw to 500 somoni ($58). Agroinvestbank is not alone, Tojiksodirotbank, Fononank and Tojprombank banks have and are suffering withdrawal limits, with the latter two banks losing their banking licences in February. The Tajik banking sector has suffered particularly since the economic slump that has affected Russia and all Central Asia. However, the main cause of this instability is mismanagement and the structural weaknesses of the banking sector and the Tajik economy, which has made the banks very susceptible to economic fluctuations.

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