/KASE, May 17, 12/ - Development Bank of Kazakhstan (Astana), bonds of which are officially listed on Kazakhstan Stock Exchange (KASE), provided to KASE the following press release of May 17, 2012:

quotation

Development Bank of Kazakhstan rejected debt restructuring to companies- borrowers Lad and Kazakhstan Rubber Recycling.

The Bank made the decision due to non-fulfillment by borrowers of earlier signed Agreement on Restructuring.

In August 2011, Development Bank of Kazakhstan (DBK) signed Agreements on Restructuring with LLP Lad and LLP Kazakhstan Rubber Recycling. It has been assumed that DBK shall extend crediting period and provide flexible loan repayment schedule.

However the companies failed to fulfill their liabilities to the Bank and violated all specified by the Agreement timeframes that prejudices further return of government funds.

Past due liabilities of LLP lad to the Bank make up about USD32 mln., LLP Kazakhstan Rubber Recycling - USD5 mln.

LLP Lad did not provide liquid mortgage and guarantees and did not implement financial and technical audit of target utilization of the loan.

LLP Kazakhstan Rubber Recycling did not provide corporate guarantees. Moreover, both borrowers did not allow the presence of the Bank Risk Manager that proves companies activities are non-transparent.

Due to systematic non-fulfillment of liabilitesby LLP lad and LLP Kazakhstan Rubber Recycling, the Bank rejected debt restructuring and intends to initiate suits.

LLP Kazakhstan Rubber Recycling was established in 2007. Main activities include production of granulated rubber. In 2009 with the support of DBK the company put into operation tyre processing plant in Astana.

LLP Lad was established in 1994. Main activities include oil professing and fuels and lubricants production.

ends

[2012-05-17]