World Economy

Kazakhstan May Support Large Banks

Kazakhstan  May Support  Large Banks Kazakhstan  May Support  Large Banks

Kazakhstan’s central bank will propose using state funds to support large local banks after evaluating their asset quality this year, central bank chairman Daniyar Akishev said on Friday, Reuters reported. Akishev told a government meeting that the proposed state support should also involve capital injections from banks’ existing shareholders. He provided no details and did not name any particular bank. One of Kazakhstan’s biggest lenders, Halyk Bank, is in talks to acquire rival Kazkommertsbank, but has said the latter needs to clean up its bad assets first. Half of Kazkommertsbank’s assets, totaling $15.7 billion, are tied up in a single loan to BTA, a former bank that is now a distressed asset management company. BTA has missed no repayments on that debt. Still struggling to recover from the 2008 global financial crisis, Kazakh banks have in the last few years been hit by the plunge in oil prices, the main export of the former Soviet republic, which slowed down economic growth and prompted a collapse in property prices.


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