The largest banks in Kazakhstan are willing to sell 25 % stake to authorities

/REUTERS, Astana, Raushan Nurshaeva, October 28, 08/ - Two large Kazakhstan banks - Halyk and Kazkommertsbank - agreed that the Government bought 25 % of their shares, the press service of the Government informed on Tuesday. "According to the agreement reached, speaking on behalf of the Government, National Welfare Fund Samruk Kazyna restrict their participation in the Halyk Bank of Kazakhstan JSC (Halyk) and Kazkommertsbank JSC additional issue of common shares of 25 % of share capital and, moreover, agreed level of emissions of preferred shares, - the report said. The State and both banks agreed to support "the actual economy sector through the implementation of measures announced to stabilize the banking sector of Kazakhstan", the press service informed. The announcement did not specify the sum of the transaction. Today, authorities in Kazakhstan have proposed four banks, which are the largest in the country to redeem their shares at $5 bn. The Government also plans to discuss similar initiatives with large foreign parties of two more banks. "In determining the terms of public support, the Government has taken into consideration the key role of the two selected banks (Halyk and Kazkommertsbank) in the Kazakh economy, attracting deposits, as well as its sound financial condition, the high credit ratings and confidence of foreign investors, the ability to service external obligations and transparent structure shareholders ", - said the report of the Government. The State will be guided by market principles and to act as an investor, does not intend to interfere in the operations of these banks and will not play an active role in day-to-day management, the Government reported. According to the government, as on October 1, 2008 the combined share of Kazkommertsbank and Halyk in assets of banking system is 34.8 %. [2008-10-29]