Bloomberg News

Samruk Mulls Aid to BTA, Awaits Debt Overhaul, Kommersant Says

February 17, 2012

Feb. 16 (Bloomberg) -- State-run BTA Bank remains in a “zone of turbulence” as bad-loan recovery was less than expected, Kommersant reported, citing an interview with Umirzak Shukeyev, head of Kazakhstan’s sovereign-wealth fund.

Samruk-Kazyna, which holds the government’s stake in the troubled lender, will consider additional capital injections if BTA remains “viable” after its second debt restructuring in as many years, Shukeyev was quoted as saying by the Moscow-based newspaper.

Aid to the lender may take the form of cutting the cost of state funding available to BTA and increasing the interest payments it gets on the wealth fund’s notes used as collateral in repo agreements with the central bank, Shukeyev told Kommersant, adding that Samruk-Kazyna will make “maximum efforts” to increase the bank’s capital.

The amount of possible injections will be decided by creditors, and BTA needs an improved business plan to boost its competitiveness, he said.

State-controlled lenders AO Temirbank and AO Alliance Bank have been stabilized, Shukeyev told Kommersant. While Samruk- Kazyna is discussing consolidating its banking assets, it’s also prepared to divest stakes in the lenders, he said.

--Editors: Paul Abelsky, Andrew Langley

To contact the reporter on this story: Svetlana Antoncheva in Astana, Kazakhstan at santoncheva1@bloomberg.net

To contact the editor responsible for this story: Hellmuth Tromm at htromm@bloomberg.net


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