Financial supervision of Kazakhstan is to discuss the license destiny of Valut-Transit-Bank JSC (Kazakhstan) on Wednesday

/REUTERS, Astana, Raushan Nurshayeva, title of KASE, October 11, 06/ - The Board of the Agency of financial supervision of Kazakhstan on Wednesday is to discuss the destiny of a small Kazakhstan bank Valut- Transit and to choose between retraction of license and readjustment, said Arman Dunayev, the head of the Agency. "If members of the Board accept those arguments, which will be offered by the new management - the most important, if we hear about clear actions from the side of the new strategic investor, - undoubtedly, positive measures will be accepted in order to give the bank the opportunity to pass the procedure of rehabilitation. Or a decision will be taken...about the retraction of license," said Dunayev to journalists before the meeting. In September the bank was deprived of membership in Kazakhstan stock exchange on all categories because it did not pay off bonds for $10 m. in due time. Afterwards, according to exchange's data, some physical people entered the staff of bank's shareholders, including Talgat Yermegiyayev, former vice-president of the railway state monopoly Kazakhstan Temir Zholy. The head of financial supervision said the bank as before experiences problems with liquidity, however, was for readjustment. "At present the situation is extremely complicated... Current problems are the problems with liquidity," said Dunayev. "Nevertheless, I am inclined to think that it is possible to rehabilitate the bank. Assuming the bank is actually the third branch network in the country. In my opinion, we do not have the right just to cut adrift such kind of banks. This is my private opinion, about which I am going to tell on the meeting". Rating agency Moody's in April assigned ratings of Valut-Transit in the list for possible decrease due to deterioration of quality of assets and unsuccessful attempts to sell the bank to foreign investors. Bank's assets as of the beginning of this year totaled KZT79.6 bn. (about $625 m.), liabilities - KZT65.9 bn. [2006-10-11]