BTA could merge another Kazakhstan bank

Photo by Yaroslav Radlovskiy©

BTA Bank, currently in pre-default condition, will possibly merge another major Kazakhstan bank, KazTAG reports citing a source in Astana close to the deal. “BTA will be merged with another Kazakhstan bank. Everything is going this way. It is not yet decided which bank will be merged with BTA, but most probably it will be one of the core banks, where Samruk is a shareholder,” the source said. “The scheme will be as follows: in the process of the merger its bad (hopeless) loans will be separated and transferred to the Stress Assets Fund and one good bank will be created on the basis of the liquid parts of both banks. At least, this is how they hope to get out of the situation in Astana, if no other option is found,” the speaker said. Earlier Tengrinews.kz English reported that in the end of December 2011 chairman of BTA Bank Anvar Saidenov wrote in a letter to shareholders and GDR holders that “should no measures be taken to resolve the current situation, the bank will be most probably conserved or will start bankruptcy procedures as per the Kazakhstan legislation”. On January 10, head of the National Bank Gregory Marchenko said that the Stress Assets Fund of Kazakhstan's National Bank is registered as a legal entity. He stressed that in case the fund's activities are successful, the balances of the second-tier banks will be “cleared’ from problematic assets for the total amount of $2 billion. General meeting of BTA Bank’s shareholders is scheduled for January 26. It will cover restructuring of a certain part of the debt of the bank and a new agreement with the creditors.

BTA Bank, currently in pre-default condition, will possibly merge another major Kazakhstan bank, KazTAG reports citing a source in Astana close to the deal. “BTA will be merged with another Kazakhstan bank. Everything is going this way. It is not yet decided which bank will be merged with BTA, but most probably it will be one of the core banks, where Samruk is a shareholder,” the source said. “The scheme will be as follows: in the process of the merger its bad (hopeless) loans will be separated and transferred to the Stress Assets Fund and one good bank will be created on the basis of the liquid parts of both banks. At least, this is how they hope to get out of the situation in Astana, if no other option is found,” the speaker said. Earlier Tengrinews.kz English reported that in the end of December 2011 chairman of BTA Bank Anvar Saidenov wrote in a letter to shareholders and GDR holders that “should no measures be taken to resolve the current situation, the bank will be most probably conserved or will start bankruptcy procedures as per the Kazakhstan legislation”. On January 10, head of the National Bank Gregory Marchenko said that the Stress Assets Fund of Kazakhstan's National Bank is registered as a legal entity. He stressed that in case the fund's activities are successful, the balances of the second-tier banks will be “cleared’ from problematic assets for the total amount of $2 billion. General meeting of BTA Bank’s shareholders is scheduled for January 26. It will cover restructuring of a certain part of the debt of the bank and a new agreement with the creditors.

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