Bank CenterCredit JSC (Kazakhstan) expands its credit activities

/IRBIS, Natalya Kuznetsova, February 23, 05/ - Bank CenterCredit JSC (Almaty, the Bank) with securities traded under official "A" listing category of Kazakhstan Stock Exchange (KASE) released the announcement today claiming it eyes boosts SME loan portfolio. In the beginning of 2005 the Bank jointly with Programme for SMEs was first to launch the project in Southern Kazakhstan region aimed at financing agricultural products manufacturers, a part of SME. The release says amount of loans that might be granted varies from $3,000 to $200,000 with maturity up to 48 months and effective yield of 9% to 16%. This said, the Bank employs tailored approach to all agricultural clients by offering a unique repayment loan amortization schedule depending on what type of collateral is used. In the first half of 2005 the Bank contemplates launching the programme in 14 oblasts across the whole Republic. As of December 31, 2004 the number of loans in the book hardly reaches 6,000 for a total value of $35 m (at January 1, 2004 the book was worth $16 m). For the sake of effective realization of the project a number of credit officers went through a training programme aimed to familiarize the bank employees with the main agricultural cycles. The programme was welcomed by the producers of Southern Kazakhstan oblast. In December 2004 the Bank granted loans worth KZT30 m. SME lending business remains one of the main parts of the Bank's strategy where it has been operating for the 6 year. Within the first year the Bank loaned 174 credits worth over $1 m, while in 2001 the book exceed $3.3 m with 600 credits lent. In first half of 2003 the Bank further boosted its SME portfolio to 1,300 loans for a total amount of $7.6 m. As of beginning of 2004 a total of 3,900 loans was granted for a total of $16.5.m. Before 2003 only 6 Bank branches were lending under the EBRD programme in Almaty, Atyrau, Aktobe, Shymkent Dzhezkazgan and Petropavlovsk with total portfolio worth $6.5 m. In 2003 SME lending branches opened in Aktau, Urals, Kzyl-Orda, Astana, Taraz, Pavlodar, Ust- Kamenogorsk, Kostanay and Satpayev. In 2004 the programme joined by departments in Kokshetau, Semey, Karaganda and Rudnyi. Currently the Bank operates 18 office throughout Kazakhstan working under the programme. The release notes that CenterCredit was named fastest growing bank on EBRD SME lending programme. The Bank highlights its main strengths as tailored approach to clients, flexible interest rates and professionalism of EBRD program officers. [2005-02-23]