Halyk Bank expects that the State will make it capital $500 m.

/REUTERS, Almaty, Olzhas Auezov, Maria Gordeeva, October 29, 08/ - Halyk Bank expects that the State will make its capital in order of $500 m., the head of the bank Grigory Marchenko told reporters "With respect to our bank, the thing was about approximately $500 m.," - Marchenko said on Wednesday. Global liquidity crisis, which began in 2007, severely hit by Kazakh banks, actively borrowed abroad. In the first half of 2008, banks have reduced profits and assets. Prior the authorities of Kazakhstan have proposed four banks - Alliance Bank, Halyk and Kazkommertsbank, the largest in the country - to redeem their shares at $5 bn. In addition, the government announced that plans to discuss similar initiatives with large foreign parties of two more banks. According to the Government of Kazakhstan, the state will be guided by market principles and to act as an investor, and does not intend to interfere in the operations of these banks. In addition, the government has promised that he would not play an active role in the daily management of banks. Yesterday, two major Kazakh banks - Halyk and Kazkommertsbank - agreed with the proposal of the Government on the repurchase their shares. "The idea is that by this money we help the actual sector of the economy," - Marchenko said, noting that a final decision on the matter is still pending. "These proposals should be formulated in writing" - explained the head of Halyk Bank. According to Marchenko, a final decision will be taken by the bank shareholders` meeting. "I think it (detailed government proposal) will be received today or tomorrow" he added. Yesterday, the head of Agency on Financial Supervision Elena Bahmutova recommended all banks to accept the government proposal and informed that negotiation with banks will be finished till the end of the current week. [2008-10-29]