MIRA
INFORM REPORT
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Report Date : |
14th March, 2007 |
IDENTIFICATION
DETAILS
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Name : |
D A AFGHANISTAN BANK |
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Registered Office : |
Ibn-e-Sina watt, Kabul, Afghanistan |
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Country : |
Afghanistan |
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Date of Incorporation : |
1939 |
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Legal Form : |
State Owned Organization owned by Goverment of Afghanistan |
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Line of Business : |
Controlls the monetary volume in the country (as well as other aspects
of operating the local currency) and provides monetary services to the local
commercial banks. |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
COMPANY NAME
D A AFGHANISTAN BANK
ADDRESS
Street : Ibn-e-Sina watt
Town : Kabul
Country : Afghanistan
Telephone :
(93 20) 2100 301 / 20 210 2812 / 799 359 945
Fax : (93 20) 210 0305
Also Known As : The
Central Bank of Iran
SENIOR COMPANY PERSONNEL
Name Position
1. Noorullah
Delawari Governor
2. Samiullah
Ibrahimi First Deputy Governor
3. Alhaj M. Issa
Turab Second Deputy Governor
4. Sarajuddin Isar Executive
Assistant Governor
Total Employees : 50
(administration)
PAYMENTS
No complaints have been
heard regarding payments from local suppliers or banks.
Subject is the Central
Bank of Afghanistan.
We consider it is
acceptable to deal with subject for LARGE amounts.
Trade risk assessment :
Normal
Opinion on the credit
figure of US DLRS 10,000,000 :
The above figure is
higher than normally seen in one amount, however could prove admissible in a series
of transactions provided the total indebtedness is strictly monitored.
FINANCIAL INFORMATION
Highlights from the
subject's statements :
Domestic current :
RIAL AFGHANI 64,682,658 - 2005 -
exact
assets : RIAL AFGHANI 84,309,904 - 2006 -
exact
Total foreign curre. : RIAL AFGHANI 72,573,976,772 - 2005 - exact
and reserve :
RIAL AFGHANI 92,849,245,142 - 2006 -
exact
Total assets :
RIAL AFGHANI 74,206,181,708 - 2005 -
exact
: RIAL AFGHANI
94,536,950,300 - 2006 - exact
Total domestic curr. : RIAL AFGHANI 48,505,497,988 - 2005 - exact
liabilities :
RIAL AFGHANI 59,164,431,565 - 2006 -
exacr
Total foreign curre. : RIAL AFGHANI 21,555,639,054 - 2005 - exact
laibilites :
RIAL AFGHANI 25,949,905,552 - 2006 -
exact
Capital &
reserves : RIAL AFGHANI
4,145,044,666 - 2005 - exact
: RIAL AFGHANI
9,422,613,183 - 2006 - exact
Total revenues :
RIAL AFGHANI 616,465,213 - 2005 -
exact
: RIAL AFGHANI
2,147,024,284 - 2006 - exact
Net Financial result : RIAL AFGHANI 222,563,987 - 2005 - exact
: RIAL AFGHANI
5,577,568,534 - 2006 - exact
LEGAL STATUS AND HISTORY
Date Started : 1939
History : The company was incorporated in Afghanistan in 1939 and it
has been, virtually, operating both as the central bank and a commercial bank. In April 2002, in order to overcome most of the problems created by irresponsible printing of banknotes by various governments in the past 15 years, it decided, last April, to introduce new banknotes and to withdraw old banknotes from circulation. The banknotes exchange operation was launched on 7 October 2002. Subject also prepared a draft on central bank law and a draft on general banking law, which, respectively, call for the autonomy of the Central Bank and market competition among commercial banks. Subject received financial assistance from the IMF, USAID, Germany’s GTZ, Sweden’s SIDA, Britain’s DFID, and the World Bank.
Paid up Capital : RIAL
AFGHANI 592,563,987
State Owned Organization
owned by Goverment of Afghanistan.
ACTIVITIES
The Subject is involved
in the following activities :
Controlls the monetary volume
in the country (as well as other aspects of operating the local currency) and
provides monetary services to the local commercial banks.
Subject is the Central
Bank of Afghanistan *. It provides services to the following members of the
local banking network :
- Commercial banks:
1. Bank-e Milli-e Afghan
(1932), Kabul
2. Export Promotion Bank
of Afghanistan (1976), Kabul
3. Pashtany Tejaraty Bank
(1954), Kabul
- Specialized banks:
1. Agricultural
Development Bank of Afghanistan (1959)
2. Industrial Development
Bank of Afghanistan (1955), Kabul
3. Mortgage and
Construction Bank (1955), Kabul
4. Da Afghan Omer Mumtaz
Bank (DAOM Bank), Kabul
5. Asian Development Bank
Recent development :
May
2002; U.S. Ambassador Robert P. Finn signs an agreement for a grant provided by
the U.S. Agency for International Development to Da Afghanistan Bank (the
Central Bank). The USAID grant facilitates the transfer of money between
Afghanistan and the international financial community and establish a
communications link between the Bank's headquarters in Kabul and its offices in
Herat, Kandahar, Nangarhar and Mazar-e-Sharif. The grant will facilitate the
transfer of money between Afghanistan and the international financial community
and establish a communications link between the Bank's headquarters in Kabul
and its offices in Herat, Kandahar, Nangarhar and Mazar-e-Sharif.
FACILITIES
The Subject has the
following facilities :
Office premises in Kabul
as well as branches in Herat, Kandahar, Nangarhar and Mazar-e-Sharif.
BRANCH OFFICES
- Airport Branch Kabul
- Azadi Matba Kabul
- Bagram Airbase
Kabul Parwan
- City Branch 01, Jadda
Nader Pashtoon Kabul Kabul Kabul
- City Branch 02,
Shahr-e-naw Kabul Kabul Kabul
- City Branch 03, Jadda
Nader Pashtoon Kabul Kabul Kabul
- City Branch 04, Kabul
Customs House Kabul Kabul Kabul
- City Branch 05, Seenama
Pamir Kabul Kabul Kabul
- City Branch 06,
Shahr-e-naw Kabul Kabul Kabul
- City Branch 07, Infront
of Seelow Kabul Kabul Kabul
- City Branch 08, Old
Macroryan Kabul Kabul Kabul
- City Branch 09, Khair
Khana Kabul Kabul Kabul
- City Branch 10, Charahi
Zambak Kabul Kabul Kabul
- City Branch 11, Charahi
Zambak Kabul Kabul Kabul
- City Branch 12,
Ministry of Commerce Kabul Kabul Kabul
- City Branch 13, Charahi
Pansad Family Kabul Kabul Kabul
- City Branch 14, Charahi
Zambak Kabul Kabul Kabul
- Jabal Seraj Jabal Seraj
Jabal Seraj Parwan
- Meer Bacha Kot (working
in city branch 9) Meer Bacha Kot Meer
- Bracha Kot Kabul
- Paghman (working in
city branch 7) Paghman Paghman Kabul
- Panjsher Panjsher Panjsher
- Pharmacy Kabul Kabul
- Suroobi Suroobi Suroobi
Kabul
- Shakardara (working in
city branch 9) Shakardara Shakardara Kabul
- Kapisa Shirkat Kapisa
- Logar Pul e Alam Logar
- Chahrikar
Chahrikar Parwan
- Wardak, Maidan
Shahr Wardak
- Mazari Sharif Mazari
Sharif Balkh
- Andkhoi Andkhoi Andkhoi
Farayab
- Balkh Balkh Balkh Balkh
- Maimana Maimana Farayab
- Aqcha Aqcha Aqcha
Jawzjan
- Shibirghan Shibirghan Jawzjan
- Hairatan
Bandar-e-Hairatan Kaldar Mazar
- Dawlatabad Dawlatabad Dawlatabad Farayab
- Khulum Khulum Khulum
Mazar
- Mazar City Branch
Mazari Sharif Mazar
- Aybak Samangan Samangan
- Sari Pul Sari Pul Sari Pul
- Gardez Gardez Paktya
- Ghazni Ghazni Ghazni
- Khost Khost Khost
- Paktika Sharana Paktika
- Jalalabad Jalalabad Nangarhar
- Khogyani Khogyani
Khogyani Nangarhar
- Nangarhar City Branch
Jalalabad Jalalabad
- Torkham Torkham Muhmand
Dara Jalalabad
- Asadabad Asadabad Kunar
- Laghman Mehtarlam Laghman
- Nuristan Nuristan Nuristan
- Kunduz Kunduz Kunduz
- Badakhshan, Faizabad
Faizabad Badakshan
- Puli Khumri Puli
Khumri Baghlan
- Imam Sahip Imam Sahip
Imam Sahip Kunduz
- Keshem Keshem Keshem
Badakshan
- Khanabad Khanabad
Khanabad Takhar
- Takhar Takhar Takhar
- Kandahar Kandahar Kandahar
- Helmand Lashkargah Helmand
- Lashkar Gah Lashkar
Gah Helmand
- Grishk Grishk Kandahar
- Spinboldak Spinboldak
Spinboldak Kandahar
- Urzgan Tirin Kot Urgzgan
- Zabul, Qalat Qalat Zabul
- Hirat Hirat Hirat
- Badghis Qala-e-Naw Badghis
- Farah Farah Farah
- Ghor Chigh Chiran Ghor
- Hirat City Branch
Hirat Hirat
- Islam Qala Islam Qala
Kisan Hirat
- Sheendand Sheendand
Sheendand Hirat
- Toor Ghundi Toor Ghundi
Gul Ran Hirat
- Nimroz Zaranj Nimroz
GENERAL INFORMATION
Until
the 1930s, when Afghanistan established banks, all foreign exchange
transactions were handled by private dealers located primarily in Kabul and Qandahar.
Even the Afghan government's foreign exchange requirements were purchased from
these dealers. Through Bank-i-Melli and later Da Afghanistan Bank (subject),
the government tried to assert a monopoly of its own over foreign exchange
transactions.
The
formal banking system in Afghanistan was established during the country's
initial economic modernization in the 1930s. Bank-i-Melli was the first bank of
any kind and used its resources to develop several profitable industrial
enterprises. Following Bank-i-Melli's success, in 1939 the government set up Da
Afghanistan Bank, the central bank. It quickly became the country's leading
commercial bank and, like its predecessor, opened branches in the major cities.
The banking system was never well developed, however, and up to the 1978 coup
neither bank's branch offices could approve loans. All loans were made by the
banks' head offices in Kabul. By the mid1970s interest rates had remained
virtually unchanged in two decades, despite inflation. The poor collection rate
of the commercial banks forced them to adopt stringent collateral requirements,
and most credit stayed in the form of short term loans. Because the rights and
obligations of borrower and lender were not well defined, neither banks nor
private borrowers could use the country's credit resources.
As
a result of these conditions, banking stagnated during the 1960s, despite the
government's establishment of a series of specialized banks, beginning in 1948
with a housing and construction bank. During
1975-76
the government nationalized all Afghan banks.
*
The President of the Bank is appointed by the country's President (he also
appoints Ministers, the Attorney General and the head of the National
Directorate of Security) with the approval of the Wolesi Jirga with the
approval of the National Assembly and the dismissal and acceptance of
resignation from these posts.
RATING
EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average/normal. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)