BTA Bank to restructure debt before August 2009

/REUTERS, London, May 18, 09/ - Kazakhstan-based BTA Bank intends to complete restructuring of its debt before August this year, which will afford Russian Sberbank to make a decision whether to buy the bank, head of state fund Samruk-Kazyna Kayrat Kelimbetov said in an interview to Reuters. At the beginning of 2009 Kazakhstan government nationalized the largest Kazakhstan bank to save it from bankruptcy. Samruk-Kazyna holds a 75.1 % share in BTA Bank. BTA Bank's foreign debt amounts to roughly USD11 bn., and the government has already spent USD2 bn. to recapitalize the bank. The government deems the root of problems for the bank was its active participation in construction projects in Russia. In February Russian-based Sberbank received an offer to purchase BTA Bank. A source close to talks said Sberbank intended to buy up to 100 % of BTA shares. "Documents on the plan to restructure debts will be prepared by June 1. We expect restructure related issues to be settled in June-July. August will be the time for Sberbank to make a decision", - Kelimbetov said to Reuters. It is planned the fund, allotting money to stabilize Kazakhstan's shocked economy, in two years will be ready to invest in CIS countries' economies Russia, the Ukraine, Tajikistan and Kyrgyzstan. [2009-05-19]