Results of annual general meeting of Bank CentreCredit OJSC (Kazakhstan) shareholders

/KASE, June 22, 00/ - According to listing requirements, Bank CentreCredit OJSC (Almaty, official list of securities, category "A") provided KASE with the minutes of shareholders annual general meeting, the report of the Board and the conclusion of the Revision commission, as well as with auditing report of Ernst & Young made on 1999 financial statements. Based on the agenda of the meeting, held on April 28, 2000, the shareholders of Bank CentreCredit OJSC decided to: - approve annual financial statements, the report of the Board and the conclusion of the Revision commission of the bank for the year 1999; - cancelled the authority of the previous and elected new Board of Directors consisting of 7 members: Baiseitov B.E., Li B.S., Muldagaliyev K.D., Nasenov A.B., Sarkytbayev M.K., Tereshenko S.A., Sharipov E.S.; - cancelled the authority of the previous member-list of Revision commission and approved new list of the commission consisting of 3 members: Elesheva S.M., - chairman, Mambetova A.Z. and Selukova V.U. - members of commission; - approved the auditors of the bank on year 2000: for auditing of annual financial statements - Ernst & Young Kazakhstan, for auditing of the report on results of issue and offering of bonds - NAC Kazakhstanaudit; Besides, the shareholders accepted the decision to execute borrowing through bonds issue under the guaranty of European Bank for Reconstruction and Development (EBRD) with the purpose to attract funds denominated in tenge for financing of small and medium scale business under the EBRD program. They also approved main parameters of planned issue: volume - KZT250 mln, face value - KZT5,000, total amount of bonds - 50,000, maturity - 1 year, type of bonds - coupon, interest rate - 20% APR, coupon payments - quarterly. The Board's President, Li B.S. made a speech on results of the banks activity in 1999. According to his report, Head office and branch network restructuring was conducted in 1999. Due to low profitability, following five branch offices were closed (names of the cities): Abay, Baykonyr, Temirtau, Shuchinsk and Ekibastuz. At present, bank has 10 branch offices and 24 settlement cash departments in 29 cities of Kazakhstan. On February 15, 2000 the second emission of the bank's shares on the sum of KZT1 bln was registered. The sum total of two emissions is KZT2,063 bln. The state share in the bank totals KZT243 mln. One of the variant of borrowing, which is currently being considered, is the sale of the state block to the EBRD. This will improve a status of the bank in financial markets. For the reported period, the bank's assets grew by 35% to the previous year, and made up KZT13.8 bln, shareholders equity grew by 17% and totalled KZT1.4 bln, net profit (without consolidation of branch companies) - KZT193.8 mln. The report also states that due to active bank policy, deposit base was steadily growing. At the end of 1999, the deposits totalled KZT11,820 mln, that is 56% higher than in 1998. In the total amount of deposits attracted 22% or KZT2,645 mln are population holdings which grew by KZT1,263 mln. State securities portfolio increased by 2.6 times and equaled to KZT2,045 mln. Loan portfolio grew by 35% and totaled KZT8.8 bln. Loan-deposit ratio shifted to 86% from 103% in 1998. In 1999, the bank kept its traditions of small-middle scale business crediting. Total volume of these funds was KZT1.9 bln of credit resources. More than 500 projects were financed under the credit line of EBRD. They mostly include projects in services, and small-middle scale manufacturing. In June Bank CentreCredit OJSC received Thomson Bank Watch rating: on long-term obligations - "B", short-term - "LC-3". In November 1999 the ratings were confirmed. The most part of the report states the task planned to implement in 2000: - increase in Authorised paid capital to KZT2 bln; - issue of VISA card with the bank's logotype; - confirmation from Thomson Bank Watch on ratings and receiving of Standard & Poor's rating assessment; - issue of bonds under the guaranty of EBRD; - completion of negotiations with EBRD on credit line on the sum of $5 mln for the development of trade financing; - putting into operation of new office in Astana.