Bloomberg News

BTA Bank’s Capital Gap Swelled to $8 Billion, Regulator Says

May 25, 2012

BTA Bank (BTAS), Kazakhstan’s biggest lender before defaulting on $12 billion of debt in 2009, almost tripled its capital deficit last month amid plans to restructure its debt for a second time in as many years.

The lender’s liabilities exceeded assets by 1.19 trillion tenge ($8 billion) as of May 1, compared with a gap of 435 billion tenge a month earlier, the Kazakh central bank’s financial oversight committee said in a monthly report on its website. BTA’s liabilities jumped to 2.64 trillion tenge in April from 1.87 trillion tenge in March, the regulator said.

BTA is negotiating a second debt overhaul after failing to make an interest payment on its July 2018 dollar bonds in January. The bank halted all payments on $5.2 billion of its recovery units, which BTA creditors received as part of a restructuring accord in 2010 to get 50 percent of anything the lender can get from impaired assets.

Holders of the notes asked for payment in full and ahead of schedule earlier this month. The lender received a “notice of acceleration” regarding its more than $5.2 billion “initial reference amount of recovery units” from BNY Mellon Corporate Trustee Services Ltd., BTA said on May 3.

The following table shows the one-month performance of Kazakhstan’s five largest lenders by assets, along with seventh- ranked Alliance Bank and 13th-ranked Temirbank, and their position as of May 1. The data from the oversight committee are in billions of tenge:

================================================================
Bank                 Assets     Loans    Provisions  Profit/
                             Outstanding              Loss
================================================================


Kazkommertsbank      2,468.5   2,324.5      853.9       0.43
Halyk Bank           2,434.9   1,372.1      334.2      14.07
BTA Bank             1,456.4   2,065.8    1,168.3    -711.42
Bank Centercredit    1,076.2     809.9      134.1       0.53
ATF Bank               941.0     825.5      177.8      -4.95
Alliance Bank          528.8     542.8      245.4       0.02
Temirbank              250.4     222.6      116.1       0.14
All 38 Banks        13,371.2  10,712.8    3,310.9    -677.31


================================================================

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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