EBRD acquired 25 per cent stake in Ineximbank (the Kyrgyz Republic) for $1.4 million

/REUTERS, Almaty, Olzhas Auyezov, November 12, 03/ - European Bank for Reconstruction and Development (EBRD) acquired 25 per cent stake in the Kyrgyz Republic's Ineximbank through $1.4 million investment, EBRD reported. "Banking sector in Kyrgyzstan is significantly less developed than in Kazakhstan,... (but) presents very good opportunities for investments", - the EBRD's director on Central Asian region Michael Davey said at press conference on Wednesday. This deal became the first EBRD's acquisition in the banking sector of Kyrgyzstan. EBRD also plans to give Ineximbank loans for the development of small and medium enterprises and trade finance for $4.0 m. Kazakhstan Temirbank's stake in Ineximbank amounts to 46 per cent, the rest 29 per cent belongs to founder and the bank's chairman of supervisory board Daniyar Usenov. The Chief Executive officer of Temirbank Oleg Kononenko said at press conference that in future TuranAlem bank, the second largest bank in Kazakhstan, is also likely to become Ineximbank's shareholder. "We've got highly pronounced interest from the side of TuranAlem bank to participate in capital (of Ineximbank)", - Kononenko said. According to him, a decision on selling a stake in Kyrgyz bank to TuranAlem bank may be adopted in the end of 2004. The largest in Kazakhstan Kazkommertsbank acquired in the end of 2002 the controlling stake in Kyrgyz Avto Bank, and which was reorganized in a form of daughter bank. Major Kazakhstan bank ATFBank has also expressed its interest in acquiring a stake in Kyrgyz bank. Ineximbank with assets of SOM376 million (nearly $8.2 m) and capital of SOM100 m (nearly 2.2 m) is the sixth largest bank in Kyrgyzstan. EBRD's total volume of loans and investments in Kyrgyzstan equals to approximately EUR140 m, 28 m of which falls at the stake of financial sector. ($1 = 41,8672 soms) [2003-11-12]