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Recapitalization program can be applied to Kazakhstan's 10 top banks - head of the National Bank
Almaty, November 12 2008
According to the chairman of the National Bank of Kazakhstan, Anvar Saidenov, the Recapitalization Program can be applied to Kazakhstan's 10 top banks if ATF Bank and JSC Bank CenterCredit decline it.
"We made an offer to the fifth and sixth banks. If they decline it, the program of recapitalization can be applied to other banks of Kazakhstan's 10 top banks. No final decision has been taken yet, but it is still possible. There are other banks that are investing in the real sector and small- and medium-sized business, and SamrukKazyna may opt to finance the real economy through such banks," Saidenov said.
According to him, the remaining $1.5bn might be used for this purpose.
Up to now SamrukKazyna has received $3.5bn out of the $5bn from the National Fund.
He said that the mentioned $3.5bn would not only be used to buy voting shares but also purchase privileged shares and offer subordinated loans.
As reported, in late October the Kazakh government offered to purchase shares in the four largest banks, Alliance Bank, BTA Bank, Halyk Bank and Kazkommertsbank, to increase their capital so that SamrukKazyna's stake in each bank will not exceed 25%. All the mentioned banks accepted the offer.
Similar offers were sent to ATF Bank and JSC Bank CenterCredit.
SamrukKazyna head Kairat Kelimbetov told a Tuesday meeting of the Cabinet that the government had approved the sum to be spent on purchase of ordinary and privileged shares from the banks and provision of subordinated loans.
According to him, at least $500m will go to Halyk Bank, $370m to Alliance Bank, $300m to Kazkommertsbank and about $2.3bn to BTA Bank.
The price for the shares to be purchased will be calculated based on their market price as at October 24 as per London Stock Exchange's quotations for Kazkommertsbank, Alliance Bank and Halyk Bank, and as per Kazakhstan Stock Exchange's quotations for BTA Bank.