Fate of Valyut-Transit-Bank JSC (Kazakhstan) is still not clear

/INTERFAX-KAZAKHSTAN, Almaty, October 31, 06/ - Decision about further fate of Kazakhstan commercial Valyut-Transit bank (VTB) has not been taken yet, informed Yelena Bakhmutova, the vice-chairman of the board of the state agency of financial supervision (AFS). "Until we understand that this plan (of actions of VTB leadership on correction of the situation in the bank. - IF-K) basically suits us, up to that moment we cannot take any decision," she said on press briefing on Tuesday in Almaty. "Everything depends on readiness to present an adequate plan of actions from the side of the Board of directors, shareholders and bank's management. This plan has not suited us yet," added Y. Bakhmutova. She noted that the volume of unexecuted obligations from the side of the bank "currently is substantial". "Lots of complaints come to us from the side of both juridical and physical people that there is untimely fulfillment of obligations. This default on obligations has already been indicated in statements (of the bank. - IF-K). Therefore, one cannot say that the situation has become normal," emphasized the representative of AFS, noting that "until the decision is taken", AFS "takes the position of active consultations and negotiations" with shareholders and potential investors of the bank. Commenting on the opportunity of accordance of stabilization loan to VTB, Y. Bakhmutova said it must be forerun by an increase of bank's capital. "We have not yet advanced our arguments for giving the stabilization loan to the National bank, since we are waiting that there must be a sufficient investment into bank's capital from the side of big shareholders, from the side of investors," she said. "As long as a normal adequate amount is not invested in the bank, I think that it is difficult enough to make decision about giving the stabilization loan," added the vice-chairman of AFS. "They (VTB. - IF-K) had particular investments for liquidity maintenance, but there have been no investments in the capital. But it should be noted objectively that there are also problems with investments, as a dispute among shareholders did not let invest additionally in the capital," she remarked. According to her information, Steven Johnson, the new chairman of the Board of directors of VTB, who is at the head of BPA International, "submitted documents for getting a big participation " in the bank. In the middle of October S. Johnson informed the bank counts on getting the stabilization loan, having requested KZT10 bn. (current KZT127.82/$1). At the same time he stated that BPA International plans to form a part of shareholders of VTB. While Anvar Saydenov, the chairman of the National bank of Kazakhstan, informed the agency Interfax-Kazakhstan on Tuesday, the board of the National bank will not take the decision about giving the stabilization loan to VTB based on corresponding statement of AFS. "It is one of primary documents, on which our decision (about allotment of loan. - IF-K) will be based on," he said. "There must be a conclusion of AFS about rightfulness of giving the loan. We will rest upon it. There is no such conclusion yet. We only have request and letter of Valyut-Transit about such loan. But this question has not been previously considered yet. There are no conditions for us to start working on this loan," informed A. Saydenov. "There are a number of requirements, terms when this loan can be given. Firstly, there must be a clear realistic program of withdrawal of bank from current situation. Secondly, money of shareholders themselves must be there, that is, the stabilization credit cannot be main in the correction of the situation, it can only be contributory," he added. Besides, continued A. Saydenov, for giving this loan the bank must comply with particular criteria, be considered system forming. "In this case on volume of deposits it (VTB. - IF-K) relates to banks that are important for the financial system," he marked. On the whole, the head of the National bank did not exclude the possibility of accordance of such loan to VTB. "It is possible, but at fulfillment of these terms," he said. [2006-10-31]