Afghanistan Banks Association

د افغانستان د بانکونو ټولنه
Afghanistan Banks Association
Voice of The Banks

Afghanistan Banks Association

ABA Participated in Finance Law Workshop, India

Date: November 09-11, 2015

Afghanistan Banks Association (ABA) aims to play key role in creating a healthy and sustainable environment for the banks operating in Afghanistan. It provides a good forum for dialogue and coordination between banks and other stakeholders. Recovery of loans has become extremely challenging for the banking sector and enforcement of mechanisms that facilitate recovery of non-performing loan is highly needed in the country.
The United States Department of Commerce Law Development Program (CLDP) with close coordination of ABA conducted Finance Law Workshop in New Delhi, India during November 9-11, 2015. Da Afghanistan Bank, Financial Dispute Resolution Commission, senior government officials from the Ministry of Finance, Ministry of Justice, Supreme Court, Ministry of Economy, and Ministry of Commerce and Industry participated to discuss key challenges facing Afghanistan's financial sector. The ABA's Chairman welcomed participants of the workshop and gave presentation on challenges of banking sector and problems/recommendations in recovery of loans. Beside, CLDP experts also delivered presentation on international best practices of banking governance, risk management, and secured lending laws, with particular focus on debt recovery. A Presiding Officer (Judge) of India's Debt Recovery Tribunal (DRT) spoke in details about the organizational structure and history leading up to the creation of the DRT.

Outcomes of the workshop:


The program resulted in the delegation forming a working group to further address issues in the financial sector, including the possibility of a special commission for debt recovery in Afghanistan, as well as other technical initiatives to promote economic growth through lending. Through this workshop, the participants contributed to bolstering the legal capacity of the Afghanistan Government in understanding finance law and enforcement mechanisms that facilitate debt recovery. Additionally, the participants discussed the pros and cons of India’s DRT with respect to a debt recovery adjudication process and Afghanistan’s compatibility with such mechanisms within the context of its constitutional legal framework.