As Afghan bank crisis swirls, another lender tied to Dubai property says funds aren’t at risk
By APTuesday, September 7, 2010
2nd Afghan bank with Dubai ties defends links
DUBAI, United Arab Emirates — A top official at the company controlling Afghanistan’s second-largest private bank says the firm’s property investments in Dubai don’t pose a risk like those that sparked a bank run at another Afghan lender.
Farhad Azizi told The Associated Press on Tuesday that Dubai real estate investments by the family’s Azizi Group holding company are “not at all” linked to funds at its Azizi Bank business.
His father founded the bank and a number of other businesses, including a property development arm building luxury homes on one of Dubai’s manmade palm-shaped islands.
Leading Afghan lender Kabul Bank faced a bank run starting last week following reports of steep losses tied in part to risky Dubai property investments.
