Afghanistan has offered a bailout for the troubled Kabul Bank, where nervous investors in droves have been withdrawing money.

Hundreds of customers have been queuing at branches across the country for several days to empty accounts after rumors that the private bank was collapsing largely due to alleged illegal withdrawals by its owners.

While dismissing reports that the government would supply US$200 million dollars to keep the bank afloat, Afghanistan’s finance minister and the governor of the Central Bank have said the government is ready to provide loans to the Kabul Bank, if it so requests.

Security has been tight at the Kabul bank, with extra guards at the entrances of the each branch.

The bank has long been the subject of reports alleging large-scale corruption by executives.