Kazakh banks bid for Kairat Bank in Kyrgyzstan

/REUTERS, Bishkek, Olga Dzyubenko, May 14, 04/ - Three of Kazakh banks - Halyk, Caspian and Alliance - are included in the shortlist of bidders for Kyrgyz state-owned medium Kairat Bank after first stage of bids was completed, representative from Committee on state property told Reuters on Friday. A total of 4 bid applications were received from four Kazakhstan-based banks. "CenterCredit bank was rejected due to non-responsiveness to technical specifications, the bank provided incomplete package of documents", Tatyana Nagavitsyna told a tender committee this Wednesday. As next stage of bids is run, the committee will have to evaluate business strategies developed for Kairat Bank by each of the bidders as well as to consider bid prices. Tentative dates when bid results are disclosed fall on June 2004. According to state committee, authorized capital of the bank that ended last year with profits, totaled 170 million soms (appr. $3.9 million) at Jan 1, 2004. KAZAKH BANKS EXPANSION Kazakh financial institutions have been eyeing on Kyrgyz banking market for a reasonable period of time. Largest Kazkommertsbank acquired controlling package of shares over Kyrgyzavtobank in late 2002. Temirbank acquired 46 per cent stake in Kyrgyz Ineximbank last year partnered with the European Bank for Reconstruction and Development that bought 25 per cent in same bank for $1.4 m. Second largest private bank in Kazakhstan - TuranAlem - considers purchasing a stake as well. According to Kyrgyz Energobank it is currently in talks with Kazakh ATFBank over sale of 34 per cent stake for $0.85 million. In the EBRD's opinion, Kyrgyz banking sector is less developed than that of neighboring Kazakhstan, yet provides good opportunities for investments. There are 21 commercial banks operating in Kyrgyzstan. ($1=43.7435 som) [2004-05-14]