ABN AMRO Bank Kazakhstan will increase equity by almost 30% due to loan of IFC

/REUTERS, Almaty, April 29, 03/ - ABN AMRO Bank Kazakhstan will increase shareholders equity by almost 30% due to subordinate loan of International financial corporation (IFC) for $10 m., informed the bank and IFC on Tuesday. During the joint press-conference representatives of the sides informed that the loan had been given for 10 years on "very attractive " rate and was meant for promoting to growth of the bank's credit portfolio and its competitiveness due to increasing of limits for one borrower. The bank works mainly with big companies in Kazakhstan oil and gas sector. Chairman of the Board of ABN AMRO Bank Kazakhstan Yan Villem van den Bos said that without funds of IFC the bank's shareholders equity was equal to about $35 m. More than one third of the bank fall to the share of corporate credits, and it intends to increase this stake, van den Bos said. According to his words, IFC, which has 20% shareholders equity of ABN AMRO Bank Kazakhstan, was chosen as the creditor according to results of the tender. The decision of the head Dutch bank ABN AMRO, владеющего 51 процентом акций казахстанского ABN AMRO allowed to make the credit cheaper, ssecure commercial risks on credits. IFC assumed country risks. 29% more of ABN AMRO Bank Kazakhstan belong to the country's largest Kazkomemrtsbank. Chief of global financial markets department of IFC Mark Allowei said at the press-conference that the task of the first such loan for Kazakhstan bank was top promote to development of the country's financial system, in which growth of banks' equity in the conditions of strict supervision can not keep pace with the needs of quickly growing economy in crediting. "As Kazakhstan economy develops and domestic companies grow, it becomes more and more difficult for banks to satisfy these companies' needs in financing", - the joint press-release of the bank and IFC says. According to the National bank's data, total shareholders equity of 38 Kazakhstan banks as of January 1 of 2003 was equal to about $1 bn. Thus, increase of the equity of ABN AMRO due to IFC's loan for $10 m. Will give increase of shareholders equity of the whole banking system of Kazakhstan by about 1%. Growth rates of Kazakhstan banks' capital are behind the rates of their assets increase. In 2002, according to the National bank's data, total shareholders equity increased by 32%, whereas banking system's assets rose by 40.2% and reached $7.36 bn., or about 30% of GDP. [2003-04-29]