Kazakhstan to raise $5 bn. for stress-fund

/REUTERS, Almaty, September 24, 08/ - Kazakhstan, intends to establish a fund of stressful assets, wants to bring to it $5 bn. investment, which plans to send for redemption of problem loans from banks, Bolat Zhamishev, the Minister of Finance said. Global liquidity crisis began in 2007 severely damaging Kazakhstan banks, which actively borrowed abroad. In the first half of 2008, banks have reduced profits and assets. In addition, virtually all the top ten banks downgraded their forecasts of financial indicators for the end of 2008. "In regard of sources, $1 bn. will raised from the budget and $5 bn. from the market (private investments), - Zhamishev said during the interbank conference on Wednesday. In addition, according to Zhamishev, stress-fund assets "will issue securities" in future. "The government is in talks with a number of foreign banks having similar experience (of establishing a fund)" - he added. Earlier, in an interview to Reuters, the head of Financial Supervision Elena Bahmutova said that the stress-fund could purchase assets of banks with some "discount". However, according to Bahmutova, the government shouldn't fully assume all risks. "It would be good to share them with banks, and foreign consultants' involvement is desirable both with money and experience for the actions to be correctly assessed by foreign investors and rating agencies" - she said. [2008-09-24]