Privatization of Halyk bank (Kazakhstan) is postponed for two years

/IRBIS, Feb.14, 00/ - REUTERS informs, with the reference to the chairman of the bank Karim Masimov, that further privatization of Halyk savings bank of Kazakhstan, which is in the government's "blue chips" program, will be postponed for at least two years. "After the consultations with our major shareholder - the government, it was assumed that the government would keep its block of 50% plus one share for at least two years, until national postal-savings system will be properly functioning", said Masimov. Sate owned postal enterprise was transformed into OJSC Kazpochta with 100% of shares belonging to Halyk savings bank. "All state owned block of Kazpochta shares were given to us so that we could create full fledged state postal-savings system on the base of OJSC Kazpochta", he said. He also added this idea has been supported by international financial institutions. He believes it will require at least two years for Kazpochta to develop into a new financial institution offering social functions - payments of pensions and allowances, which is currently done by Halyk bank. Masimov said that it was hard to find an alternative for Halyk bank at this time since none of financial institutions can handle the functions performed by the bank now. Kazpochta, with its about 4,000 branches all over the country, will become a subagent of Halyk bank in March 1 already. It will assist in paying pensions and allowances in remote regions of the country where Halyk bank has no offices. Evgenya Dominova, the manager of Kazpochta, says it is about 30% of all social payments that reach about KZT10 bln as a whole. Masimov said the ministry of postal services and telecommunications of Japan would help to set up a system of postal savings in Kazakhstan. The chairman says at the first step regional centers will be in focus, then districts and villages. When everybody will be in on-line mode, each person either from the village or in Almaty can receive equal services, said Masimov. He said major structural changes have taken place at the bank itself. The main goal of these changes is to attract new clients and stimulate the inflow of savings into financial sector of the country. A front office has been established to work in three directions - corporate clients, retail services, small and medium size businesses. This year the bank plans to start offering new financing services to its depositors and retirees, and double the loan limits to small and medium sized businesses, especially in regions. The bank will also be more active in working with corporate clients also. Previously, it was assumed the share of the government would be reduced to 25% after this year by selling it to strategic investors and on the stock market. Now, the government owns 50% plus one share of the bank, Asia Invest owns 16.8%, Delta owns about 25%, and remaining shares are among the depositors of the bank. Authorized capital of the bank is KZT3.6 bln.