Ex-chairman of the National Bank of Kazakhstan is ready to head a commercial bank

/REUTERS, Almaty, Oljas Auezov, November 8, 04/ - The former head of the National Bank of Kazakhstan Grigory Marchenko says he can head of one of the country's biggest commercial banks, the co-owner of which will be a big European financial institution. "Three of five biggest (Kazakhstan) banks are interested in this project", - said Marchenko to Reuters without calling concrete banks. Five biggest by the size of assets banks of Kazakhstan are Kazkommerts, TuranAlem, Halyk, ATF and CenterCredit. Marchenko headed the National Bank in 1999-2003, after that for about three months he worked as the first prime-minister, and afterwards, till October of this year - as the assistant of the president Nursultan Nazarbayev. Marchenko in an emphatic manner left the post of Nazarbayev's assistant having subjected to criticism the acting government of Kazakhstan, which he considered as "not effective" and said about violations during September's elections to the parliament, which were called by the West as non- corresponding to democracy. As Marchenko says, he is also negotiating with three big European banks in order to borrow $50-100 m. to the capital of not called Kazakhstan institution, which will offer a wide range of products - unavailable, in Marchenko's opinion, in any acting banks. At present Kazakhstan banks are actively mastering the market of consumer crediting, and also small and medium business sector, and have the traditional base of big corporate clients. At the same time western banks working in the country have concentrated their efforts mainly in the biggest state companies and joint ventures. At that, insurance market is weakly developed in Kazakhstan, investment funds are just appearing, and pension funds and assets management companies bear losses complaining about lack of financial instruments. "There is a free niche at the market. Within three-five years either western banks will start mastering retail market, or domestic banks will expand the range of their services", - said Marchenko. "For example, now there are 4.5 million uninsured houses and apartments in Kazakhstan", - he added. Besides, as Marchenko says, Kazakhstan is a comfortable starting area for going to the market of Russia and other CIS countries, for example, Ukraine and Azerbaijan. Three biggest domestic banks have already bought subsidiary banks in Russia. Major subject of the continued negotiations between three Kazakhstan and three western banks is market share of western partner in domestic bank's capital. "Domestic banks prefer to give a foreign investor a stake at the rate of 25% and one share, but European partners would like to get the control shareholding within several years", - he said. [2004-11-08]