Marchenko told about Nazarbayev's instructions

Chairman of Kazakhstan National Bank Gregory Marchenko told about the instructions given by Kazakhstan President Nursultan Nazarbayev on stabilization of the situation in BTA and Alliance Banks, Tengrinews.kz reports. The day before the President listened to the National Bank’s 2011 progress report at the meeting in Astana. The President told about the necessity to stimulate and activate domestic banks and stabilize the situation in the banks that have undergone debt restructuring. “He was talking about continuing the work on the second restructuring of BTA Bank and further development of Alliance Bank. It will be either a merger with Temir Bank or Alliance Bank will be sold to a strategic investor,” Marchenko said noting that the instruction was given to Samruk-Kazyna fund. Meanwhile, head of the National Bank tagged the financial situation of Alliance Bank “quite normal”. “There is no need for any measures on its stabilization. The President was talking mostly about its future,” he stated. Earlier Tengrinews.kz English reported that Kazakhstan President instructed to stabilize BTA and Alliance Banks. At the end of the meeting the President gave specific instructions related to the tenge exchange rate, anticipated inflation corridor [of 6-8%] and streamlining of the nation’s accumulation pension funds. Head of State also pointed out the poor quality of the loan portfolios and low lending activity.