The financially stricken amateur boxing federation AIBA has achieved an economic liberation. The association agreed on an out-of-court settlement with a creditor (Benkons) in the dispute over a loan of ten million dollars (approximately eight million euros). AIBA had guaranteed the World Series of Boxing loan.
The Uzbeke Gafur Rachimov, who has been the new AIBA interim president since the end of January, described the agreement as “a significant step towards restoring confidence in the association”. Without the settlement of the dispute, AIBA would have been facing bankruptcy, according to Rakhimov. The agreement provides for the reimbursement of part of the money from 2021. A further part of the amount will be covered by sponsoring.
AIBA is in financial difficulties. Following allegations of mismanagement and embezzlement, President Wu Ching-Kuo resigned in mid-November, and the Taiwanese are said to have accumulated liabilities of over 30 million euros.
IOC President Thomas Bach criticized the developments in the association with particular vigour and called for greater transparency. The AIBA chief ethicist will present a report at the meeting of the IOC executive in Pyeongchang. The IOC had already put the financial aid on hold in December.