Improvement of Alliance Bank JSC (Kazakhstan) is expected in early 2010, negotiations on joining the Arab investment fund in the bank's capital

/IRBIS, November 10, 09/ - Management of Alliance Bank JSC (Almaty) hopes in early 2010 completely normalize the bank, said - Mr. M. Kabashev, Chairman of the Board of Alliance Bank JSC, during an online conference at the forum "The center of gravity", today. "Thanks to the successful negotiation of debt restructuring, Alliance Bank, the coming accession to the shareholders of the National Welfare Fund Samruk- Kazyna, we are already in early 2010 completely Rehabilitate bank", - said, Mr.M. Kabashev. According to him, it is expected that after the restructuring of the bank's own capital will be positive and will be about KTZ 50 bn. The above financial recovery will bank through a combination of measures: - Samruk Kazyna capitalization of KTZ 129 bn, of which 24 bn. - into common shares, KTZ 105 bn - into preference shares - the income from debt cancellation amounting to 377 billion tenge and the conversion of debt into shares under the plan to restructure $ 21 bn. tenge According to the head of the bank debt of Alliance Bank as a result of the restructuring will be reduced from KTZ 620 billion to KTZ 145 billion. Interest expense will decrease to 60-75 billion tenge per year in 2006-2008 to 15-17 KTZ billion in the year after the restructuring. Terms lengthened to 7-20 years, maintenance of principal will commence no earlier than four years. After restructuring, 67% of bank's shares will belong to the "National Welfare Fund" Samruk-Kazyna" JSC, 33% - to creditors. In addition, Mr. M. Kabashev reported that negotiations are under way to join the bank's capital, a major Arab private equity fund. "Negotiations with a large Arab private equity fund. And they have some interest in acquiring shares of the bank. The State does not intend to stay in the bank for a long time. Likely to state-owned shares will be sold to a strategic investor in the next two years. And a letter with this Fund interest in the bank has already signed,"- said the head of Alliance Bank JSC. Alliance Bank plans to become a universal bank focusing on retail business in the small and medium businesses. [2009-11-10]