Problems of USA mortgage market had caused the growth of rates in Europe ad are already influence the cost of servicing of Russian and Kazakhstan companies' debts

/IRBIS, Dinara Mukasheva, Andrey Tsalyuk, August 14, 07/ - Information agency K2Kapital (Russia) had published on its web site the informational message that on August 9, 2007 European central bank had provided credits for total amount of 94.8 bn. euro ($130.2 bn.) for softening of crisis, appeared in the sphere of mortgage crediting. "This step had become the unexampled response of ECB for suddenly appeared need of banks in cash, excited by crush of sector of mortgage crediting of borrowers with low rating in USA", - is said in the message. Specified sum exceeded 69.3 bn. euro, which were provided by ECB on September 12, 2001, next day after terrorist attack on New York. According to the message of K2Kapital rates on credits overnight, on which banks are provided loans to each other, had jumped to maximally high level for the last six years. London interbank offer rate LIBOR on dollar credits on Thursday increased to 5.86% from 5.35%, and rate on credits in euro increased to 4.31% from 4.11%. Three months' LIBOR in dollars increased to 5.5% from 5.38%. By opinion of K2Kapital, reflected in the message, the most rapid growth of rates overnight since June 2004 signals that banks are reducing the money mass on the background of the loses, caused by crisis in American sector of mortgage crediting, are distributing all over the world: at the same day the leading French bank BNP Paribas SA informed that it had freeze funds of three investment funds, because it is not able to "objectively" evaluate the volume of borrowings. Except this, Holland investment bank NIBC Holding NV informed on Thursday about waste of 137 m. euro on investments to American sector of mortgage crediting of borrowers with low rating in current year. Increase of LIBOR, by opinion of Russian analysts, will touch many big companies of Russia, because majority of syndicated loans, borrowed by them, are connected to three months' LIBOR. According to data of "Vedomosti" newspaper, published in # 148 (1922) dated August 10, 2007, in year 2006 Russian companies and banks had borrowed in syndicated credits $28.7 bn., and in the first half-year of year 2007 - about $32.2 bn. Major borrower of Russia - Rosneft since March till May had borrowed for purchasing of YUKOS' assets $22 bn. by three tranches at LIBOR rate LIBOR + 0.25-0.5 %: $9.5 bn. for half-year, $6 bn. for year and $6.5 bn. for year and half. In June part of these credits was paid off. If to suppose that was paid the six months' tranche, and the rate won't decrease, than yesterday growth of three months' rate LIBOR by 0.12% will increase the costs for servicing of two other tranches for time till maturity by about $15 m.", - is noted in the article of "Vedomosti". Below IRBIS is giving the information concerning terms of syndicated loans, borrowed by Kazakhstan companies, considering LIBOR rate (time basis of determination the term of credit is - 360/30). The specified information was provided to Kazakhstan stock exchange (KASE) by the banks in the frames of listing requirements and is supplemented by data from news of REUTERS agency. Agency IRBIS is not pretending on completeness of given data, however they let to suppose that crisis on mortgage market of USA is able to complicate the life for Kazakhstan financial institutions. ---------------------------------------------------------------------------- Date of Name of Sum, Rate, Term, borrowing borrower m. USD b.p. + LIBOR days ---------------- ---------------------- ------- ------------------ ----- November 2005 Alliance Bank JSC 170.0 tranche А: 180 360 tranche В: 225 720 June 2006 Nurbank JSC 135.0 195 720 July 2006* Bank CenterCredit JSC 300.0 tranche А: 45 (40) 360 tranche В: 70 (65) 720 tranche С: 95 (85) 720 September 2006 ATFBank JSC 400.0 100 370 September 2006 Temirbank JSC 50.0 165 369 September 2006 TuranAlem Finance B.V. 1 111.0 tranche А: 35 540 tranche В: 65 1,080 September 2006 BANK CASPIAN JSC 140.0 tranche А: 115 370 tranche В: 150 720 October 2006 ATFBank JSC 550.0 100 370 November 2006 Tsesnabank JSC 25.0 300 370 November 2006 Bank CenterCredit JSC 200.0 95 370 March 2007 BANK CASPIAN JSC 200.0 tranche А: 90 370 tranche В: 120 720 April 2007 Nurbank JSC 100.0 165 720 April 2007 HSBK (Europe) B.V. 400.0 30 720 June 2007 ATFBank JSC 30.0 tranche А: 240 1,800 tranche В: 240 1,800 tranche С: 135 1,080 July/August 2007 Astana-Finance JSC 50.0 120 360 June 2007 Bamk CenterCredit JSC 90.0 55 180 July 2007 Kazkommertsbank JSC 400.0 25 360 ---------------------------------------------------------------------------- * Rates of borrowing are given on the basis of information of REUTERS agency dated July 12, 2006, according to which investors were suggested two variants of loan' terms. In parenthesis is indicated the alternative variant. In official notification of Bank CenterCredit JSC dated July 19, 2006 rates on given loan were not specified. LIBOR rate for three months in US dollars, formed as of August 9, 2007, increased in comparison to beginning of year 2007 by 2.6%, to beginning of year 2006 - by 21.1%, by beginning of year 2005 - by 112.4%. [2007-08-14]