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Tue 29 Jun 2010 05:51 PM

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Bahrain court rules in central bank's favour in Awal case

Court ruling was on an appeal against decision made by the central bank in July last year.

Bahrain court rules in central bank's favour in Awal case
(Getty Images)

The Central Bank of Bahrain said a local court ruled in its favour to place Awal Bank under administration.

The court ruling was on an appeal by the former chairman of Awal Bank against the decision made by the central bank in July last year, the bank said in an e-mailed statement on Tuesday.

“The ruling today clearly validates our decision and we will continue to support the independent administrators,’’ said Khalid Hamad, executive director of banking supervision at the central bank.

“Their priority is the realisation of Awal Bank’s assets, for the benefit of all stakeholders and creditors, through all available means.”

"The Central Bank of Bahrain notes the Bahrain court result in favour of the CBB following the appeal launched by the former Chairman of Awal Bank, against the decision made by the CBB on 30 July 2009 to place Awal Bank into administration.

"The ruling supports the CBB’s decision to place Awal Bank into administration due to Awal Bank’s defaults on certain of its obligations in June 2009, under Article 136 of the Central Bank of Bahrain and Financial Institutions Law (Decree No. 64 of 2006)," the central bank said in the statement.

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