The head of the National Bank says that possibly the republic's government will enter the capital of Kazakhstan Mortgage Company

/Kazakhstan today, August 27, 03/ - "Theoretically it's not excluded that if the government provides some funds in the budget, it will also enter the capital of KMC", - said chairman of the board of the National Bank of Kazakhstan Grigory Marchenko, commenting on the question about further capitalization of Kazakhstan Mortgage Company (KMC). According to Marchenko's words, the decision of the National Ban's Board about privatization of KMC was made "rather long ago". The point was tat within the framework of partial privatization of KMC the National Bank planned to reserve the right to own 40%-market share of this company, sell 20% to international financial organizations, in particular, to European bank for reconstruction and development (EBRD) and International financial corporation, and offer 40% among Kazakhstan banks, which participate in this program. However, the National Bank's head noted, "things go slowly with IFO and there are some questions concerning banks as well, and the company must work". "That's why we will capitalize the company, and, may be, shares will be offered to other shareholders", - said Marchenko, having marked that if commercial banks and IFO did not participate in the planned forthcoming floatation of KMC shares, the National Bank's stake would grow. "We should not be hostages of strict schemes, if separate banks do not want to participate in KMC's capital - this is their right, and the same concerns IFO", - the National Bank's head stated. He has marked that in case of necessity the National Bank will change the planned in advance structure of privatization of KMC. As Marchenko has explained, disagreements between the National Bank and commercial banks have appeared, in particular, concerning margin. "Banks said margins should not be made. EBRD directly supported banks in it and said its participation would depend on it. If we do not make it, rates now would remain on the level of 19% as well", - noted Marchenko. At the same time, he stated, in the beginning of the year the rates on mortgage loans were equal to 19%, and now they have fallen to 13.5%, and it's expected in September they will be 12%. "Thus, results of the work (of the company) are on hand", - summarized the country's head banker. The second problem, Marchenko also marked, is reverse purchasing of выкуп по mortgage loan: commercial banks wanted to transfer all risks to KMC, which had no security, no lawyers, however the National Bank" did not agree with it either". As the whole, Marchenko noted, even if large banks do not participate in the company's shareholders equity, they have to decrease rates on mortgage loans anyway because of competition. As was informed before, before the end of this year Kazakhstan Mortgage Company intends to increase authorized capital by KZT1 bn. by floating its 100 th. common inscribed shares. At present the company's authorized capital is equal to KZT1.5 bn., shareholders equity - KZT1.7 bn., assets - KZT2.8 bn., loan portfolio - KZT2.2 bn. KMC was founded in order to realize the confirmed by Kazakhstan government conception of long-term financing of house-building and development of mortgage crediting system in the republic. The company's founder is the National Bank of Kazakhstan. [2003-08-27]