The decision of OJSC "Halyk Bank of Kazakhstan" shareholders special general meeting.

/KASE, Nov.10, 99/ - According to listing requirements, OJSC "Halyk Bank of Kazakhstan" (Almaty, official list of securities, category "A") provided Kazakhstan stock exchange (KASE) with minutes of shareholders special general meeting, which was held on October 29 of this year. According to agenda, shareholders made the following decisions: to make changes and amendments to the Charter of the bank to confirm it with the law "On banks and banking activities" and "On joint stock companies"; to augment the authorized capital of OJSC "Halyk Bank of Kazakhstan" by registering the fourth additional issue of 6,031,666 common inscribed shares with 100.00 tenge par value for a total of 603,166,600 tenge; to get "Arthur Andersen" as an advisor on selling part of state owned block of shares for the placement of the fourth additional issue of the bank's shares; to sell (place) the shares of the fourth issue (6,031,666 common shares with 100.00 tenge par value) on stock market (simultaneously with the sale of 6,031,666 shares of the bank in the state owned block) and use the proceeds to increase the authorized capital of the bank; to increase the bank liabilities and to set the borrowing limit at $400 mln; to issue eurobonds for an amount of $100 mln up to $200 mln or equivalent of that amount in accordance with the terms and rules of eurobond issue (placement price will be determined by yield of Kazakhstan eurobonds on secondary market); to approve a big deal of the bank - offering a guarantee for issue of eurobonds of an affiliated company - "HSBK Europe B.V." (established in Holland in 1998) for a total of $100 mln up to $200 mln or equivalent of that amount; Besides, shareholders dismissed previous Board of directors and elected a new one for 1 year consisting of 7 people: Smagulov K.M. - deputy chief of the chancellery of the Prime-minister of Kazakhstan; Abdullina N.K. - deputy chairman of the National Bank of Kazakhstan; Abulgazin D.R. - Vice- minister of finance of Kazakhstan; Abuov M.G. - Director of LLC "Delta"; Dosaev E.A. - Vice-minister of energy, industry and trade; Solodchenko R.V. - Chairman of economic planning agency of Kazakhstan; Masimov K.K. - Chairman of the board of "Halyk Bank of Kazakhstan". In his speech to shareholders the chairman of the board Mr. Masimov K.K. said after opening of the representative office in China, another one was planed to be opened in Russia. Fist, it will be a representative office, later an affiliated bank or a branch. Presently, talks are held with respective Russian bodies. In addition, he said the bank was to be present in major capital markets: in the next 2-3 years the bank plans to get into markets of London (England), New York (USA), and possibly Frankfurt on Maine (Germany).