Turkey government institution took control over Demir Bank Kazakhstan OJSC

/IRBIS, Dec.6, 00/ - The representative of Demir Bank Kazakhstan OJSC informed IRBIS agency that today Demirbank T.A.S., the shareholder of Kazakhstan bank, was taken over by Banking Supervision Board of Turkey. The Board established by law as a state organ of Turkish Republic. Thus, Demir Bank Kazakhstan OJSC became controlled by government institution of Turkey. Demir Bank Kazakhstan OJSC is one of fast developing banks in Kazakhstan. It was established in September 1998. Till present, the major shareholder of the bank with 99.7% stake has been Demirbank T.A.S. (Istanbul). The rest part of shares is held by individual. On June 28, 2000 the authorised representative of Demir Bank Kazakhstan OJSC informed that Board of Directors of EBRD (European Bank for Reconstruction and Development) decided to purchase 20% shares of the bank, thus making it possible to increase shareholders equity up to $18.0 mln. In 1999, the National Bank of Kazakhstan admitted Demir Bank Kazakhstan as a bank that fulfilled requirements under international accounting standards. Based on financial statements for 1999, net profit of the bank equalled KZT201,948 th., or $1,5 mln. At the end of the year shareholders' equity of the bank reached KZT1,589,251 th. ($11,300.0 th.), it grew by KZT1 bln last year. It is said that as of late February of current year shareholders' equity exceeded KZT2 bln or $14 mln. In 1999 the bank's liabilities amounted to $40 mln, which was $30 mln higher than a year ago. The total assets of the bank reached $50 mln. As of January 1, 2000 the bank was serving a total of 918 clients, including corporate local, international and Turkish companies. At the end of the first quarter of the year 2000, Demir Bank Kazakhstan ranked eighths in the Kazakhstani banking sector in terms of capital and eleventh in terms of assets. The balance of the bank has increased to $53 mln by the 1st quarter of the year 2000, up from $26 mln in the 1st quarter of last year. From the beginning of this year the bank increased its equity capital to KZT2 bln by attracting 6 year subordinated loan. Demir Kazakhstan Bank OJSC is a one of 16 members of the deposit insurance system fund. The bank is a member of Kazakhstan Stock Exchange (KASE) in categories that allow to participate in trades in foreign exchange, government bonds (GS) and securities included into KASE official listing. Demir Kazakhstan Bank OJSC is a primary dealer of the Ministry of Finance and primary agent of the National Bank of Kazakhstan on the market for GB. In this year, the bank received license on banking cards operation and rendering of custodian services.