Citi will operate as the Government's adviser on establishing the Fund of stress assets

/INTERFAX-KAZAKHSTAN, Astana, November 10, 08/ - Citi will operate as Kazakhstan Government's adviser on establishing the Fund of stress assets, The Prime Minister of republic Karim Masimov informed. "Citi will operate as the Government's adviser on establishing the Fund of stress assets, which has big enough experience on such projects" he said on selector session in Astana on Monday. At that the head of the Government was sure that all issuers, linked with "subcrediting economy" will be decided on during the two forthcoming weeks. "We will "undo" bad credits through the Fund of stress assets, complete capitalization of the banks, "flow in" resources in economy through the Fund SamrukKazyna" K. Masimov noted. Moreover, he informed that "Credit Suisse and J.P. Morgan are advisers of the Government and SamrukKazyna on banks recapitalization issue". "Considering that Credit Suisse was the Great Britain Government's adviser on this issue and J.P. Morgan was the adviser of the USA Ministry of Finance, we in this program (banks recapitalization - IF-K) used all the world experience, which was applied in all such issues till today" the Prime Minister stressed. "I think in two-three days the program on banks` recapitalization will be finished" - K. Masimov said. Kazakhstan government was known to address to the shareholders of the four backbone commercial banks at the end of October: Alliance Bank, BTA Bank, Halyk Bank and Kazkommertsbank - on flow in additional assets in the stock capital of these banks as a measure on capital adequacy. At that state fund SamrukKazyna participation in the capital of banks shouldn't exceed 25 %. The mentioned banks adopted the Government's offer. National Welfare Fund SamrukKazyna JSC was created in October, 2008 by means of merger of Kazakhstan Holding on State Assets Management Samruk and State Fund of Sustainable Development Kazyna. [2008-11-10]