The new investor of Valut-Transit-Bank JSC intends to invest $50 m. to its capital; it is expected the change of its name; during three years this financial institute wants to enter to LSE

/INTERFAX-KAZAKHSTAN, Almaty, November 27, 06, title IRBIS/ - The new investor of Kazakhstan commercial Valut-Transit-Bank (VTB) - company BPA International intends to invest to its capital $50 m. These infusions will be made in the frames of the planned extra emission of shares, informed the chairman of board of directors of VTB Steve Johnson, representing BPA International. "State wholly is supporting us. Constantly our meetings with AFS (state agency of financial supervision - UF-K) are taking place, we are communicating with National bank. Till the end of January we are planning to finish negotiations about stabilization of the situation in the bank, and as a part of our agreement we take on us the liability of injection to the capital of the bank in size of 50 millions dollars", - he told in the interview to the agency Interfax-Kazakhstan, and newspapers "Panorama" and "Business & Vlast". "We'll never agree to carry such a risk, if we would not be sure that we'll manage o stabilize the situation with the bank and it will exit from the crisis", - S. Johnson had noted. By his information, it is planning to make the emission of shares in the beginning of the next year. "If everything will follow the plan, then it will take place in the middle of January", - he told. By his words, as the result of this emission the largest shareholder of VTB will become either company BPA International, or he himself - S. Johnson. Now he is adjusting the documents on receiving from AFS the status of the large participant of VTB. S.Johnson had informed that the present large shareholder of bank Talgat Yermegiyayev, owing 28% of shares intends to sell his stake. At the present time S. Johnson is owing with 32.4% if shares of VTB, which he had purchased from investment group Seymar. Except this, the shareholding of VTB in size of 9% is belonging to the businessman Nurzhan Bekshenov. The rest amount of bank's shares is belonging to the wide circle of physical and juridical persons. S. Johnson called the present staff of shareholders of VTB as "temporary". "We are planning to make the restructuring of capital. We are also have some doubts about some past emissions - how much legal they were. Accordingly our opinion - it is necessary to clear the situation shareholding - so at the present moment we are working with lawyers on that question", - told the interlocutor. Except this, S. Johnson again had stressed that in VTB it is relying to receive the stabilization loan form National bank of the republic. "We hope, that the state will give us the support in the form of stabilization loan. At the moment on the stage of coordination with state bodies there is a scheme, by which we will be provided with the stabilization loan, and also the scheme by which we legally will invest to the capital of the bank money which we want to carry in", - he told. As it was informed, earlier S. Johnson had announced that VTB needs the big sum of funds, which are needed to the bank for priority projects, including the acquittance. In this connection he had performed with the suggestion to provide to the bank the stabilization loan in size of KZT10 bn. (current 127.94/$1). Meanwhile the representatives of AFS announced that before the question about providing VTB with the loan will be examined, shareholders and investors of the bank will have to invest the adequate funds to its capital, and administration - to provide the corresponding plan of measurements of correction the situation in VTB. In AFS also were stressing, that the volume of unexecuted liabilities form the side of bank is very significant. In this connection S. Johnson had informed that the new administration of VTB at the present time is agreeing with the large creditors about delay of debts' payment. "We are receiving the serious support from all financial institutes of Kazakhstan. All are interested in that bank will stabilize and survive. All financial institutes are not only banks, but pension funds, state institutes - creditors of Valut-Transit are signing the agreements with us on restructuring credits for more long time. In fact by the reached agreement the financial institutes give us one year on solving of the current problems", - told the interlocutor. So by his information, today is signing the number of corresponding agreements on delay of debts' payment till the end of year 2007, and some - till the end of year 2008 to the total sum KZT12 bn. Meanwhile bank intends to agree with clients about delay of debts' payment to the sum KZT18 bn. "Not any from financial institutes had refused us, that is the extra indicator of confidence", - he stressed. Except this, continued S. Johnson, by the management of VTB is conducting the work of returning the assets, unduly removing form the bank by its former owner Aytbaky Belyalov, calling himself as Andrey Belyalov, who now is under the home arrest. Along with it, he informed, it is starting the process of returning of credits unduly given by the bank. "We are talking about 40 bn. tenge, on which we had adduced the requirement to return", - noted S. Johnson in this connection, reminding that by all these facts of "illegal enterprise and swindle" by the General Office of Public Prosecutor were made the number of criminal cases. "We are cooperating with General Office of Public Prosecutor on returning of representation network of the bank. Already the first results are received, despite we are working as management actually for only one month. By us were returned funds, which by not very legal form were spent on building of the new headquarters of bank in Astana. These were first $18 millions which we managed to return to the bank", - he noted. Pay off the bank's liabilities firstly before its depositors its current management will by the account of funds, which it intends to attract from selling of the part of representation network, nonspecialized assets, in particular the accumulative fund and pawn-shop business. "We are already negotiating with different Kazakhstan banks, which are interested in purchasing of these assets", - told the interlocutor. So by his data, from selling of pension fund it is planning to gain about $16 m., of pawn-shop business - about $60 m. and cost of the part of representation network, which it is planning to sell, the administration of the bank is estimating as minimum at $100 m. S. Johnson had stressed that whole process of selling of property and assets of the bank will be clear. "And in future we are planning to conduct business very openly and by western standards", - he added. The interlocutor had told, that the administration of the bank had negotiated with International financial corporation about including VTB to its program of development of corporate management and is planning at the nearest time to finish negotiations with EBRD about the possible partnership. "We want to become the partners of EBRD", - announced S. Johnson. "We are not going to sell our shares to EBRD. We are planning to attract it as a partner for technical help", - he had specified, however without exclusion in perspective the ability of addressing of the administration of VTB to EBRD for attracting of credit resources. S. Johnson had also informed that at the nearest week the administration of VTB intends to coordinate with AFS the program of working with depositors of the bank, payments on clients' deposits. By his information, the total volume of deposit portfolio of the bank totals KZT21 bn. Speaking about future plans, S. Johnson informed that the activity of the bank will be oriented on the work with retail clients. "We intend to work mainly with physical persons, deal with automobile crediting, mortgage crediting. Corporate portfolio of the bank we'll try to minimize as possible. We are already had started to work out [products, which we will offer to our clients next year. Idea is that the name Valut-Transit have to disappear, and since new year will appear the new bank with new name, new approach, new ideas", - he told. So, the interlocutor had informed, for December 7 of the current year it is planned the meeting of shareholders of VTB, on which it is planned to accept the decision about changing the bank' name and about transferring of its juridical address form Karaganda to Almaty. Relatively to more long-term perspective, S. Johnson had informed that "it is planning during three years to lead the bank on London stock exchange (LSE)". BPA International provides the services of financial consulting in commercial banking business, have specialists on financial and trade services for support of development of the market of countries with transition economy. Company is represented in Great Britain, UAE, Ukraine, Slovakia, Czechia, Kazakhstan [2006-11-29]