business

Kazakhs to Manage Stakes in Failed Lenders Via New Vehicle

Kazakhstan will consolidate state stakes in BTA Bank, Temirbank and Alliance Bank, three of the four Kazakh lenders that defaulted in 2009, in a new management company, central bank Chairman Grigori Marchenko said.

Yelena Bakhmutova, former chief of the disbanded Agency for Financial Supervision, will head the new company, which will be under management of the National Wellbeing Fund Samruk-Kazyna, Marchenko told reporters in Almaty today.

The state-owned Samruk-Kazyna bought a stake in BTA in early 2009 and the government later took over Temirbank and Alliance after credit markets froze and the country’s property bubble burst.

BTA, Temirbank and Alliance Bank have reached restructuring deals with creditors, allowing them to write off about $11 billion of debt. The government owns 81.48 percent of ordinary shares in BTA, 67 percent in Alliance and 79.9 percent in Temirbank, according to the Kazakhstan Stock Exchange website.

Kuat Kozhakhmetov, former deputy chief of the Agency for Financial Supervision, was appointed acting head of a new financial supervision committee in the central bank, Marchenko said. The regulator was disbanded, with its functions transferred to the central bank, according to Marchenko.

(Updates with size of government holdings in fourth paragraph, Marchenko comments in last.)
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