Alliance Bank (Kazakhstan) discontinued acceptance of application for hypothecary loans refunding

/KASE, June 22, 09/ - Alliance Bank (Almaty), the listed company of Kazakhstan Stock Exchange (KASE), informed KASE that it discontinued acceptance of applications for hypothecary loans refunding due to complete drawing of the Bank loan portfolio. As regards of hypothecary loans refunding, received in other banks, then on the Bank decision influenced many factors complicating the refunding process for a debtor, including additional expenditures of a debtor related to assessment and insurance of housing, life insurance, the need in a debtor solvency demonstration, and this category loans long term consideration - up to 16 days. Taking into account that hypothecary loans refunding program is effective till July 1, 2009, the majority of such debtors will not be able to collect the full documents package, therefore the Bank decided to discontinue acceptance of applications for refunding. As of the current date on this program Alliance Bank has drawn KZT10.631 bn - 76% from the total volume of allocated to the Bank funds (KZT14 bn). The remaining funds the Bank KZT3.1 bn will return to the National Welfare Fund Samruk-Kazyna, and KZT269 m will be allocated for refunding of loans being considered based on submitted applications. As previously informed the hypothecary loans refunding program was initiated by the Government of the Republic of Kazakhstan to decrease the debt burden of borrowers through the decrease of an interest rate on hypothecary loans. National Welfare Fund Samruk-Kazyna allocated KZT120 bn for this program, implementation, which were distributed between 10 commercial banks of the country. Alliance Bank has been allocated KZT14 bn that must have been drawn during 3 months. [2009-06-22]