Alliance Bank to reduce its debt by USD3 bn after restructuring

/REUTERS, Astana-Almaty, July 9, 09/ - The fourth largest Kazakhstan-based bank is to completete its restructuring by November 1, 2009 and expects to reduce its debt by USD2.5-3 bn, the bank said in a statement on Thursday. The crisis-impacted bank agreed with creditors on Thursday to restruсture its USD4.2 debt. "After the restructuring it is planned the debt will remain at about USD1 bn, that is, we are planning to facilitate our USD2.5-3 bn debt", - the head of the bank Maksat Kabashev said to the media on Thursday. Shortly after the restructuring the state-run fund Samruk-Kazyna and the bank are planning to enter into agreement specifying the fund will purchase a controlling share in the bank. According to the bank, after the deal is concluded the fund will recapitalize Alliance Bank, which is necessary to bring the bank capital into compliance with prudential norms. According to results of the talks the bank offered its creditors five variants of restructuring. One variant suggests the creditors share in the bank capital, however, not more than 33 % in aggregate. "According to agreements by November the bank will have the following shareholder capital structure: if we agree with Samruk-Kazyna it purchases a controlling shareholding, Samruk will own at least 66 % of common shares of the bank. The rest of the shares will be allocated among our creditors, which are largest financial organizations", - Kabashev said. Managing director of the state-run Samruk-Kazyna Abay Iskendirov, who as well attended the press-conference in Astana, said, the Fund is not yet planning to sell its potential share in Alliance Bank. "We are always ready to attract interesting investors. However, this is not a number-one goal to sell a 66 % share (shares of Samruk in Alliance Bank)", - Iskendirov said. The Kazakhstan banking system suffered badly from consequences of the global crisis, which is why a number of banks appeared to be insolvent and failed to pay their debt. In particular, the state-run Samruk-Kazyna became a holder of a 75.1 % share in the large BTA Bank, which is in talks to restructure its USD15 bn debt. The state numerously announced plans to sell its share in BTA Bank to a strategic investor - Russian Sberbank. In February the Kazakhstan government was near to agree and buy a 76 % share in Alliance Bank for symbolic KZT100 (USD0.82) from Seimar Alliance Financial Corporation (SAFC) - the major shareholder of the bank. The deal failed to materialize. [2009-07-09]