/SUPPLEMENTED-2/ GOVERNMENT GAINS CONTROL OVER BTA BANK AND ALLIANCE BANK

/INTERFAX-KAZAKHSTAN, Astana, February 2, 09, information on Alliance Bank is added, translated into English by KASE/ - The state agency of Kazakhstan for financial supervision (AFS) proposed and the Government agreed to buy a stake in the largest commercial bank of the republic BTA Bank in the amount of 78.14% common shares. "AFS opinion on necessity of additional offering of 29,915,425 common shares of BTA Bank has been prepared; this will consequently form the stake of the State fund Samruk-Kazyna" (in the share capital of the bank. - "IF-K") equal to 78.14% common shares", - head of AFS Elena Bakkhmutova informed at the government meeting on Monday. At that she informed that the amount necessary for the bank complying with capital sufficiency normative equals KZT251.3 bn. (current rate KZT121.47/$1). "In accordance with the legislation the offering price must be determined as on the date of decision (by the Kazakhstan Government on implementation of this measure. - "IF-K"). Accordingly the price of one common share (BTA Bank - "IF- K"), resultant on Kazakhstan Stock Exchange by the moment of trade opening today equals KZT8,401 a share", - she said. The Government voted for adoption of this resolution. "On February 2, 2009 in connection with violation of liquidity coefficient and own capital sufficiency coefficient by BTA Bank, in accordance with articles 17, 17-2 of the Law "On Banks and Banking", the Government in agreement with the agency on regulation and supervision of financial market and financial organizations (AFS. - "IF-K") made a decision on additional capitalization of BTA Bank through acquisition by joint-stock company Fund of national wellbeing Samruk-Kazyna of additional authorized shares", - is noted in a joint statement of the Government, National Bank and AFS. "This measure will allow for the bank to form a level of provision, adequate to the accepted risk, and is necessary for protection of interest of depositors and bank creditors and securing sustainability of the bank and banking system of the Republic of Kazakhstan", - is said in the statement. At that, the statement underlines that the measure "is not nationalization, according to the current legislation is of a temporary nature and supposes subsequent exit of the state from shareholding". According to the document, simultaneously with implementation of this measure, the State fund Samruk-Kazyna is beginning to conduct negotiations with potential strategic investors on assignment of a part of shareholding. In particular, at the time being preliminary talks with representatives of the Savings Bank of Russia are being held, is said in the statement. The statement also says the stake of current shareholders of BTA Bank after offering of an additional emission will be reduced down to 21.86% with the same number of shares. The Government also made a decision to release from exercise of duties the chairman of the board of directors of BTA Bank Mukhtar Ablyazov. "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 the volume of assets in the Interfax-1000 ranking compiled by Interfax-CEA". Earlier on Monday Mukhtar Ablyazov stated that the government gained full control under the bank, naming it "abuse of power and state raid". "Actions of the Government show economical incompetence and political short sight of functionaries", - is emphasized in the statement of Ablyazov. Moreover, very soon the Kazakhstan Government will gain control over other domestic commercial bank - Alliance Bank, which was disclosed to journalists after a government meeting today. "In nearest days a deal on acquisition of controlling shareholding of Alliance Bank will be finalized", - head of the State fund of national well being Samruk-Kazyna Kayrat Kelimbetov said. Meanwhile, prime-minister of the republic Karim Masimov, speaking at the meeting of the government, informed, for provision of sufficient liquidity of Alliance Bank fund Samruk-Kazyna depositing USD200 m. funds at a correspondent account of the bank in the National Bank, at that he noted that the National Bank is ready to grant short-term loans to Alliance Bank in the sufficient volume to support liquidity. Before that K. Masimov noted: "Majority shareholder of Alliance Bank" - financial corporation Seymar Alliance" - proposed Samruk-Kazyna to acquire 76 % of its shares for a symbolical pay of KZT100". At this meeting the Government approved the resolution of joint actions of the Government, National Bank, AFS and State fund Samruk-Kazyna regarding Alliance Bank. "It is supposed to conclude with Alliance Bank an agreement on long-term bank deposit in the amount of KZT24 bn., which in future may be converted into shares. The effective term of the agreement - 6 months", - the Minister of Finance Bolat Zhamishev said at the Government meeting on Monday in Astana before the voting procedure. The Minister emphasized that Alliance Bank recently acquired new obligations, "which was not planned by the bank, which means the bank had very complicated financial instruments in its portfolio", with problems arising thereof. This is why, B. Zhamishev said, shareholders appealed the Government suggesting the Government takes control over the bank. In his turn K. Masimov announced "this measure is not nationalization of the bank as shares are acquired on initiative of the main shareholder on the basis of a corresponding agreement". "Alliance Bank according to results of the first half of 2008 was ranked 22nd in terms assets volume among CIS banks and the 4th among commercial banks of Kazakhstan in the Interfax-1000 rating: CIS Banks", prepared by Interfax-CEA". Earlier it was informed that Samruk-Kazyna is planning to finish recapitalization of the four banks of the republic (Alliance Bank, BTA Bank, Halyk Bank and Kazkommertsbank) by the middle of March 2009. At the end of November last year the State fund Samruk-Kazyna signed Memorandums of understanding wit the commercial banks on provision of additional capitalization specifying the main principles of state participation in the capital of the banks. At the end of October the Kazakhstan Government suggested shareholders of the banks the Government provides additional funds to their equity capital. At that, it was noted, the share of the state fund Samruk-Kazyna in the capital of the banks will not exceed 25 %. The banks accepted the offer of the Government. 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]