Bloomberg News

Kazakhstan Not Planning Cash Injection Into BTA, Deputy PM Says

September 17, 2012

Kazakhstan doesn’t plan to inject money into state-owned BTA Bank (BTAS), which has defaulted on its debt twice in three years, Deputy Prime Minister Kairat Kelimbetov said.

Speaking in a Sept. 15 interview in Ukraine’s Black Sea city of Yalta, where he attended the Yalta European Conference, Kelimbetov wouldn’t elaborate on the government’s plans for the lender.

BTA, Kazakhstan’s third-largest bank by assets, said last month that an Almaty court had prolonged a restructuring deadline by three months to Dec. 20. BTA had been seeking an agreement by September after failing to make a January interest payment on dollar bonds due July 2018.

Sovereign-wealth fund Samruk-Kazyna took BTA over in February 2009, two months before the nation’s largest lender at the time defaulted on $12 billion of debt. The government holds an 81.5 percent stake in BTA, which won 92 percent creditor approval for a restructuring plan in May 2010.

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

To contact the editor responsible for this story: Balazs Penz at bpenz@bloomberg.net


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