EXPERT INTERVIEW: The possibility of new cases of default on obligations on corporate bonds are rather high

22.01.09 22:26
/IRBIS, January 22, 2009/ - The growing negative influence of the world financial crisis put Kazakhstan securities issuers into fix. During the second half of 2008 Kazakhstan Stock Exchange (KASE) recorded several cases of default (default on obligations) on coupon interest payment on coupon bonds, included into KASE official list. There are 6 listing companies of KASE declared on inability fully or partially perform obligations before bondholders: Doszhan Temir Zholy (DTZ), Almaty distillery plant, ICKE CAT COMPANY, Transstroimost, REMIX-R and ROSA (which January 19, 2009 informed on payment of remainder of KZT49.0 m. coupon interest to bondholders KZ2CKY05C040). Experts participated in the current expert interview of IRBIS Information Agency of Financial Markets, determined the possibility of this tendency dissemination to other companies of Kazakhstan real economy sector and gave recommendations what measures can be done to avoid this situation. According to analysts, the reasons of default on obligations by the issuers are not only in deterioration of external background, but in peculiarities of business conducting by the companies, inflexibility of funding mechanism and so on. At that, experts estimate the possibility of new cases of default as being rather high. More detailed information on expert interview, dated January 22, 2009 is available at http://www.kase.kz/files/mix/exp_220109_df.pdf. The expert interview is conducted weekly on the basis of the most acute questions of domestic and world markets development. Participants of the interview are experts of leading Kazakhstan professional participants of financial markets. For additional information: Tel.: (727) 237 53 28 [2009-01-22]