HEAD OF BOARD OF DIRECTORS OF BTA BANK: LARGEST KAZAKHSTAN COMMERCIAL BANK UNDER GOVERNMENT CONTROL - STATEMENT

/INTERFAX-KAZAKHSTAN, Almaty, February 2, 09, - translated into English by KASE/ - The largest Kazakhstan commercial bank BTA Bank is under control of the republic Government beginning February 2, 2009, is noted in the statement signed by chairman of the board of directors of the bank Mukhtar Ablyazov. The statement was received by Interfax-Kazakhstan agency on Monday. "Today 75 % of BTA Bank shares" was transferred to control of the Government of the Republic of Kazakhstan. The largest private CIS bank is now under control of functionaries", - is said in the statement. "Current government actions in relation to BTA Bank" - is an abuse of power and state raid, aimed not only against bank shareholders, but against its management, partners, and clients. Actions of the government show economical incompetence and political short sight of functionaries", - is emphasized in the statement. According to Ablyazov, "current situation is a result of permanent and persistent attempts of state agencies to take away the bank by questionable methods". Thus, he says, in October 2008 the Government "required that we transfer 63 % voting stock to the government", but as soon "as we warned of negative consequences of the decision, the requirement reduced down to 25 %". "And this was exactly that time that the memorandum of understanding with four main banks of the country was signed. However, in relation to BTA bank" the Government failed to comply with its obligations", - is stressed in the statement. Among the four banks, 25 % stake of each of which must be temporarily transferred under control of the government, apart from BTA Bank" - Halyk Bank, Kazkommertsbank, and Alliance Bank. State fund Samruk-Kazyna" is planning to finish recapitalization of the four banks of the republic by the middle of March 2009. "Because of inexpert actions of the government BTA Bank is now isolated from global market of borrowing, especially after statements on intent of the state to restructure foreign debts. The bank was being constantly blood let through withdrawal of deposits and removal of funds from accounts of national companies and state holdings, and forcing clients to shift to other financial institutions. romises were not kept by the Government. The bank was isolated from participation in the state programs" - the statement claims. M. Ablyazov stated "there was a target to gain control under the bank by any means, and this happened". Ablyazov is not leaving out a possibility that functionaries, having taken away private property, "for justification of their actions" "will use their usual methods in the form of defamation and criminal cases". "Interfax-Kazakhstan" by the moment of issue of this message had no possible comment from the Government. "BTA Bank" according to results of the first half of 2008 was ranked the seventh among CIS banks and the first among Kazakhstan banks regarding volume of assets in the Interfax-1000 ranking, compiled by "Interfax-CEA". Press-conference of BTA Bank management was scheduled for Monday, February 2. As was informed, Kazakhstan Stock Exchange (KASE) last Friday suspended trade in common stock of BTA Bank. According to KASE message, trade in common stock of BTA Bank listed on the stock exchange in the first category, was suspended at 13:49 as the stock fell 39.99%. Unless AFS (the state agency for financial supervision) made no decision since Friday, trading in the stocks of BTA Bank must be resumed at the beginning of the new trading day on KASE The price of the last executed deal in the stock, concluded on January 29, 2009, made up KZT14,000.01 (current rate KZT121.47/$1)a share. Trading was suspended after conclusion of a deal therein at a price KZT8,401.00 a share (60.01% of the first indicated value). As it was commented for "Interfax-Kazakhstan" by director of analytical office of Troyka Dialog Kazakhstan Emil Milushev, the main reason for the stock to fall was uncertainty around the bank as well tied to the state entering the bank capital. "In regard of BTA Bank it can be said that the main factor is uncertainty. There are many rumors of different nature from different sources: first BTA Bank is to be nationalized, which supposes the state buying over 25 % stake in the bank. The second, is that BTA Bank is likely to sell subsidiary Temirbank", - he said. "Investors do not like uncertainty, and it was being reinforced during the last two- three days due to a number of controversial rumors", - he added. According to his opinion, as soon as certain news on sale of block of BTA shares to the state appear, it will be positively assumed by investors and the shares will be seen to grow. Meanwhile, the director of the analytical office of BTA Securities Nurlan Rakhimbaev also considers that this may be linked to "investors being at a loss". "There have been no fundamental reasons for BTA Bank shares to fall", there was good news today - increase of capital, on redemption of foreign debt, but such news was expected", - he said on Friday to "IF-Kazakhstan". End of message INTERFAX-KAZAKHSTAN The aforementioned block of information agency INTERFAX-KAZAKHSTAN has been retranslated by Kazakhstan Stock Exchange (KASE) by the special permit of the director of the agency. KASE is releasing the text in the form it was received by the exchange. [2009-02-02]