National Bank of Kazakhstan confirmed its readiness to convert tenge deposits rearranged on April 05, 99

/IRBIS, Jan.07, 00/ - Today the National Bank of Kazakhstan distributed a press-release under #1 "On conversion of tenge deposits of private persons in the banks of the second tier, earlier rearranged due to introduction of free floating exchange rate of tenge". Particularly, press- release reads: "With a view to protect the interests of bank depositors the Government and the National Bank of Kazakhstan, as a measure of alleviating the consequences of introducing free floating exchange rate of tenge, has given private persons - bank depositors, who will not withdraw their tenge deposits for 9 months, an opportunity to fully convert them into US dollars at 88.3 tenge per 1 (one) US dollar exchange rate, was stated in the press-release #007 of the National Bank of Kazakhstan, dated April 05, 1999. Due to the fact that repayment date of converted deposits of private persons in the banks of the second tier has come, the National Bank of Kazakhstan wishes to inform the depositors of the banks about the following. According to the Rules for converting tenge deposits of private persons and legal entities in the banks of the second tier due to introduction of free floating tenge exchange rate, which were approved by the resolution #62 (hereafter - Rules) of the Board of the National Bank of Kazakhstan, dated April 05, 1999, repayment of deposits to private persons are made by the banks within time limits specified in deposit contracts and/or additional agreement. Herein, the National Bank of Kazakhstan once again confirms its readiness to meet the obligations on previously signed contracts (agreements) with the banks to sell US dollars on forward contract terms with conversion term of deposits of private persons beginning January 05, 2000. Conversion mechanism looks as follows. Banks should transfer tenges equal to total amount of deposits of private persons, rearranged by the Rules, for their further conversion into US dollar at KZT88.3 per 1 (one) US dollar to the account of the National Bank. The National Bank, in turn, after receiving the amount mentioned above in tenge and converting them at the exchange rate given above, ensures transfer of corresponding amount in US dollars to correspondent account of the bank not later than the next working day. Subsequent payment of converted deposits of private persons are made by the banks within the time limits specified in the deposit contracts and/or an additional agreement signed between the bank and its client. Depositors are free to choose whether to withdraw their money in US dollars or tenges, or rearrange increased deposit amount in tenge for a new term. Example: In April 1999 depositor rearranged deposit contract for KZT88,300, which will equal to USD1,000 at KZT88.3 per US dollar. According to the terms, the contract expires on January 15, 2000. On January 10, 2000 bank transfers KZT88.300 to the National Bank, which in turn, within a specified day transfers back USD1,000 to correspondent account of the bank. After the expiration of deposit contract (January 15, 2000) the depositor, at his own discretion, may receive USD1,000 or sell these dollars to the bank at the exchange rate offered by the bank and receive them in tenges (for instance, at KZT138.2 per US dollar it equals KZT138,200). At the same time, depositor may sign a new deposit contract for USD1,000 or corresponding amount in tenge (for instance, KZT138,200)".