Fund Samruk-Kazyna completed the offering of KZT716 bn. in second tier banks for crediting the economy of Kazakhstan

/INTERFAX-KAZAKHSTAN, Astana, February 27, 09/ - National Welfare Fund (NWF) Samruk-Kazyna JSC completed the offering of KZT716 bn. (KZT150.26/USD1) in second tier banks for crediting the economy of Kazakhstan, informed the press service of the fund. Disseminated Friday message says that to stabilize the financial system, four banks received public funds in the total amount of KZT476 bn.: BTA Bank - KZT212 bn., Kazkommertsbank (KKB) - KZT120 bn., Halyk Bank - KZT120 bn. and the Alliance Bank - KZT24 bn. "In doing so, the funds allocated to BTA Bank, go to the purchase of 75.1% of common shares of the bank. The state became the principal shareholder" - the message says. Funds allocated to KKB, were placed on deposit. "Of which KZT36 bn. will be directed to purchase of 25% stake in the bank, KZT84 bn., according to the supplementary agreement signed between the FNB and the Bank are for crediting the real economy sector" - the press release informs. KZT120 bn. is placed on deposit in Halyk Bank. "Out of this amount, KZT60 bn. will be spent on purchasing 25% shares, KZT60 bn. - for crediting the real economy sector" - the message says. According to Samruk-Kazyna, a general meeting of shareholders, which will have completed a transaction to purchasing shares of these banks by the state, will be held in the KKB and Halyk Bank before the end of March. KZT24 bn., for Alliance Bank support, was placed on deposit. In addition, to support small and medium-sized businesses (SMB), 12 second-tier banks, through the Foundation for Enterprise Development "Damu" from February 16 to 26 transferred the funds, in accordance with the agreement signed on February 14. "KZT120 bn. aimed at financing of small and medium-sized businesses through the following banks and financial institutions: Kazkommertsbank - KZT16 bn., Hayk Bank - KZT11.7 bn., BTA Bank - KZT22 bn., Alliance Bank - KZT18 bn., ATFBank - KZT10 bn., Bank CenterCredit - KZT10 bn., Kaspi bank - KZT6 bn., Eurasian Bank - KZT3 bn., Tsesnabank - KZT3.3 bn., Nurbank - KZT8 bn., Bank Astana-Finance - KZT3 bn., Kazakhstan subsidiary of Sberbank -KZT6 bn., the Fund "Damu" - KZT3 bn." - the press release says. It is noted that "banks participating in the program, will credit SMB at good rate of no more than 12.5% for a period of up to 7 years, a limit to one borrower - to KZT750 m. It is estimated that 70% of allocated funds by the state will go to refinancing of earlier credits to small business, 30% - on crediting new projects. In doing so, the terms of the issuance funds to the banks recommended that up to 30% of funds directed to support of projects on agricultural processing and food production. The term for banks to develop funds, allocated by the Fund, set up to July 1, 2009 with monthly reporting on the development. Thus, funds intended to support the SMB sector, is fully offered in commercial banks and available for crediting entrepreneurs" - the message says. To support the completion of unfinished construction sites in the cities of Astana and Almaty, as well as in adjacent areas of Almaty region, will be done through crediting builders and buyers of complete housing. "In accordance with signed between the Fund and STB agreements until April 15, banks and developers must submit applications for funding, with specific objects and the required amounts and forms of financing" - the press release explains. Along with this, for these funds we plant to create the real estate fund Samruk-Kazyna with the purpose to stabilize the real estate market in Astana and Almaty, through the redemption of housing not demanded by the population, for subsequent sale or lease with option for purchase. KZT120 bn. has already been sent to the banks to refinance mortgages. "For today, the Fund transferred KZT120 bn. in the following 10 banks: KKB with a KZT24 bn., Halyk Bank - KZT24 bn., BTA Bank - KZT40 bn., Alliance Bank - KZT14 bn., ATFBank, Bank CenterCredit, Kaspi bank, Eurasian Bank, Temirbank and Tsesnabank - to KZT3 bn. in each" - the press release notes. Since March 1, banks should have to accept applications from citizens who have mortgages. In doing so, borrowers may refinance their loans both in the bank, where they are served, and in other banks. Mortgage loans will be refinanced at a rate of 9% for employees of the public sector and socially vulnerable segments of the population and 11% - for other categories of borrowers" - the message stresses. Thus, for today, from KZT1.08 trl. that were transferred from the National Fund to the NWF Samruk-Kazyna, KZT716 bn. are transferred to second-tier banks to implement all the above areas of government anti-crisis program. The amount of remaining funds makes KZT364 bn." - the press release says. It is noted that KZT240 bn. are planned for the tasks to complete the construction and provision of new mortgages and buy housing through real estate fund Samruk-Kazyna, KZT120 bn. reserved for the implementation of investment and infrastructure projects, and KZT4 bn. - for the additional financing of measures to stabilize the financial sector. National Welfare Fund Samruk-Kazyna - is a state holding company, owing and managing the national companies in different economy fields, including oil and gas, telecommunication, transport and national development institutions. National Welfare Fund Samruk-Kazyna was created in October 2008 by means of merger of Kazakhstan holding on state assets management Samruk and state fund of sustainable development Kazyna. [2009-03-02]