KABUL - President Ashraf Ghani on Tuesday evening chaired a session to discuss details of improving the clearance and recovery process of loans by Kabul Bank.

The Presidential Palace said in a statement on Wednesday that Ghani, after hearing reports about the Kabul Bank loans recovery process, ordered the concerned officials to speed up the procedure.

He also directed legal action be taken against those who have been recognized as Kabul Bank defaulters by the court.

He directed the Kabul Municipality and other municipalities in provinces to take proper measures for confirmation of properties that were put up as guarantees for loans, including Khalilullah Frozi's property, and accelerate the process to transfer them to the Central Bank – the state bank.

According to the statement, Ghani also directed the Attorney General's Office (AGO) to assess the letters of those who have not cooperated and ensure they present themselves to the AGO.

Meanwhile, he directed police to take action and summon individuals who have not paid their loans so far.

In addition, Ghani ordered the Central Bank and the clearance committee in collaboration with the Finance Ministry to take steps to recover Kabul Bank's loans as soon as possible and return a significant amount of the loans to the Central Bank by the start of the next fiscal year.

Kabul Bank, once the country's largest financial institution, was badly shaken and collapsed in 2010 in one of the largest banking embezzlement schemes in the country's history.

The former chairman of Kabul Bank, Sherkhan Farnood, and CEO Khalilullah Frozi were sacked from their positions and arrested over the embezzlement of more than $900 million USD in cash and assets.

Frozi and Farnood were sentenced each to 10 years in jail following a court verdict last November after they were found guilty of enabling the collapse of Kabul Bank – which is now run by the government. (Tolonews)