From March 1 Halyk bank to delegate part of pension payment duties to Kazpochta

/IRBIS, Feb.28, 00/ - REUTERS informs, with the reference to the head of Kazpochta Orazaly Erjanov, that from March 1, 2000 Halyk savings bank of Kazakhstan will step by step pass its pension payments functions to Kazpochta, beginning from village areas. At the beginning Kazpochta will make pension payments in Almaty and Jambyl regions as a pilot project as there are no divisions of Halyk bank there. Halyk bank Kazakhstan received a state block of shares in Kazpochta in December of last year for two year management to develop postal-savings system in the country and to pass pension delivery and payment functions to Kazpochta. Halyk bank handles about KZT12 bln in pensions a year, with about half of this amount going to village areas, said the head of Kazpochta. It is said Kazpochta will start making social payments in villages till approximately August 1 as a subagent of Halyk bank. He said they would try to make everything possible to offer a basic financial services to village people. To achieve these purposes Halyk bank is going to assist Kazpochta to modernize its branch network by providing with computers and communication equipment. It is going to be achieved via several credit lines. About $10 mln is to be required for computer equipment modernization and $3-4 mln for renewal of vehicles. Kazpochta plans to receive $9 mln loan from Islamic development bank in accordance with the decision of the government. In addition to making pension payments, Kazpochta is believed to acquire such functions as cash collection and joint issuance of plastic cards. Kazpochta was unprofitable for a few last years because of economic situation in the country. The company received KZT51 mln profit last year and KZT33 mln a year ago. The head of Kazpochta said great changes would take place this year as the postal service itself is not profitable business.