Bloomberg News

BTA Bank Says Has Enough Cash to Make June 30 Debt Payment

June 21, 2011

(Updates with quote from bank statement in third paragraph, bond yields in fourth, trade finance debt in fifth.)

June 21 (Bloomberg) -- BTA Bank, Kazakhstan’s biggest lender before it defaulted two years ago, said it has enough money to make a 24.3 billion tenge ($166 million) interest payment on June 30 after yields on its debt soared.

BTA has 50.7 billion tenge in its accounts and can access 251 billion tenge through repurchase operations with the National Bank of Kazakhstan, the Almaty-based lender said today in an e-mailed statement.

“The bank has a sufficient level of short-term liquidity allowing it to perform all of its obligations in full and in accordance with the schedule and without any prejudice to the current operational activities of the bank,” BTA said.

The yield on BTA’s dollar-denominated notes due in 2018 fell 42 basis points to 18.7 percent as of 7:27 p.m. Almaty, after jumping 167 basis points to a record high yesterday. BTA last year restructured $16.7 billion of debt after the government took control of the bank when credit markets froze and Kazakhstan’s property bubble burst.

In addition to the June 30 interest payment, BTA must repay 25.5 billion tenge of trade financing on Sept. 30, the bank said today. BTA made the first 24.3 billion tenge coupon payment on the 2018 notes in January and paid back 25.5 billion tenge of trade financing in March, according to the statement.

The bank rejected on June 3 speculation that it may restructure debts for a second time after overestimating the potential recovery on bad loans.

“I totally exclude the question of BTA Bank restructuring during this phase,” Chief Executive Officer Anvar Saidenov told Bloomberg News on June 3. “We don’t even discuss this.”

--With assistance from Denis Maternovsky in Moscow. Editors: Willy Morris, Andrew Langley

To contact the reporter on this story: Nariman Gizitdinov in Almaty at ngizitdinov@bloomberg.net

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net


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