Samruk-Kazyna is ready to provide funding for system-four banks in recapitalization program

/INTERFAX-KAZAKHSTAN, Astana, January 14, 09/ - The State Fund Samruk-Kazyna is ready to provide financing, amounting $1 bn. for system- four banks (Alliance Bank, BTA Bank, Halyk Bank and Kazkommertsbank) in recapitalization program, Kairat Kelimbetov informed. "In January - February we will try to start financing in recapitalization program. Consequently, when we come to agreement on all conditions, this financing will be converted, transferred into final signing on capital" he announced on the press conference on Wednesday in Astana. He added that the State Fund Samruk-Kazyna negotiates with banks. At that, he said that the whole recapitalization program, including signing on shareholders` equity and issue of subordinated debt instruments is provided by funds $4 bn. "We are still talking about $1 bn. that means the purchase of 25 % share, and exactly this amount will be provided to the mentioned banks in nearest time" - K. Kelimbetov said. According to him, this sum may be provided either in the form of short-term conditioned deposit or in converted loan. "Another $3 bn. will be provided in the form of preferred shares purchase or subordinated loans or other financial instruments, which currently we are discussing with banks" - K. Kelimbetov informed. Along with this, for the Government to sign on the capital of these system- four commercial banks, the State Fund Samruk-Kazyna, as its head explained, should make corresponding agreement with banks. "Government's decision authorizes the State Fund Samruk-Kazyna to sign 3 types of agreement with banks: agreement on memorandum, dated November 28, option agreement that means we agreed with banks that after one year in shareholders` list, the Government will leave it; and agreement between shareholders on distribution" - Kelimbetov said, adding that "it is a subject of confident negotiations between every bank and the State Fund Samruk-Kazyna. "In total we suggest that we finish the signing with two banks till the end of January and correspondently with two-week break with other banks. The term of signing agreement in the Government's plan of action dated as the first quarter, but t again wanted to say that we plan it before the mid of February. That means before the mid of February we will sing all necessary judicial agreements between the Government and banks" - Kelimbetov said. As informed, Samruk-Kazyna plans to complete recapitalization process of system-four banks by the mid March 2009. Samruk-Kazyna signed mutual understanding memorandum at the end of November, 2008 with four commercial banks - Alliance Bank, BTA Bank, Halyk Bank and Kazkommertsbank on their additional capitalization issue, where main principals of Government's share in capital of these banks are agreed. As known, at the end of October, Kazakhstan Government offered shareholders of these commercial banks to in-flow additional funds in their shareholders` equity. At that, participation of the State Fund Samruk-Kazyna in banks` capital shouldn't exceed 25 %. Banks agreed with offer. [2009-01-15]