By the end of 2003 Bank TuranAlem intends to increase the stake on small and medium business crediting in its loan portfolio up to 20%

/Kazakhstan today, April 14, 03/ - By the end of 2003 Bank TuranAlem intends to increase the stake on small and medium business crediting in its loan portfolio up to 20% from present 8%. The chief of small and medium business department of BTA OJSC Saule Isina informed about it. "It's doubtless that we'll increase this stake because we are take rather good positions precisely in small business crediting", - Isina said. According to her data, at present BTA rakes 10% of total volume of small and medium bysiness crediting in the republic among Kazakhstan second tier banks. The bank intends to increase this indicator up to 15% by the results of the year. According to Isina's information, by the beginning of 2003 the bank's current portfolio in the sphere of small and medium business equaled to more than $180 m. The biggest proportion in BTA's loan portfolio belongs to enterprises in trade sphere, and also enterprises of industrial and agricultural sectors. As Isina informed, it's forecasted that as the whole bank's loan portfolio, according to results of this year, will increase 1.5 times as much. According to her words, total volume of credits, which have been given by the bank, has reached $830 m., that is 20% of total stake of credits, which have been given by the republic's banking sector. The department's chief has also marked that at present the bank, in accordance with its credit policy, constantly expands the range of its banking credit products for small and medium business subjects. In accordance with it the bank actively works on borrowing of international program loans for development of this sector of the republic, which promote to decrease of interest rates on credits. In particular, BTA jointly with EBRD conducts program of small business development support. Within the framework of it BTA has already given $18 m. for 5.5 th. borrowers. Besides, the bank conducts programs jointly with Asian development bank, Islamic development bank, the World bank of reconstruction and development, and also German credit line KFW. "Today we also come to domestic market of borrowing conducting joint programs with oblast akimats ", - Isina marked. By the results of 2002 the bank gave financing in 12 Kazakhstan oblasts for more than $5 m. within the framework of these programs Talking about the bank's plans on decreasing of interest rates on credits for small and medium business subjects, Isina said that by the end of this year it may equal to 18% in tenge. "18% - is quite real interest rate, which we will be able to offer", - BTA's representative believes. At present it is 20% APR. [2003-04-14]