Bank CenterCredit received a loan for financing leasing of agricultural equipment

/Bank CenterCredit JSC, July 28, 05/ - On July 11 of 2005 Bank CenterCredit JSC received a loan from International Financial Corporation for financing deals of its subsidiary - CenterLeasing LLP in the amount of USD10 m. for seven years. Receipt of the loan was the result of a long and productive work of CenterLeasing LLP and Bank CenterCredit JSC with International Financial Corporation. In the beginning of 2003 a project on leasing development was started by International Financial Corporation, the purpose of which was: - harmonization and approach of Kazakhstan's leasing legislation to international standards, - formation of leasing companies' business processes conforming to international requirements, - teaching specialists able to conform to the growing market's demands. CenterLeasing was one of active participants of this project, the first results of which were changes and additions in the acting legislation, which took effect since January 1 of 2004. The changes gave the considerable push to leasing market development. Leasing portfolio of CenterLeasing LLP grew within one year and a half more than 5 times. Besides, International Financial Corporation made a detailed analysis of the company's activity, analyzed principles of work, taught specialists. CenterLeasing LLP is at present one of the leaders of the leasing market, this loan will let the company satisfy their clients' needs in long and not expensive financing, financing terms may reach 7 years, interest rate will not exceed 13%. This is the second loan received from international financial institutions. In the beginning of this year CenterLeasing LLP acted as co- borrower jointly with Bank CenterCredit JSC on the loan of European Bank for Reconstruction and Development in the amount of USD6 m., given for up to five years for financing leasing of agricultural equipment. Assets of Bank CenterCredit JSC as of July 1 of this year were KZT224.4 bn. having increased within the year (i.e. since July 1 of 2004) by 86%. Equity capital grew by 77% - to KZT16.8 bn. It grew due to growth of total amount of undistributed income by KZT3.4 bn. and paid authorized capital by KZT3.9 bn. According to results of the second quarter of this year Bank CenterCredit JSC earned net profit in the amount of KZT2.1 bn. that is more by 82.8% than in similar period of last year. Loan portfolio grew within the year by 97% or KZT150.2 bn. Bank CenterCredit JSC is one of five biggest banks of Kazakhstan. As of July 1 of 2005 bank has 19 branches and 104 cash-settlement offices in Kazakhstan. Bank CenterCredit JSC has Ва1 long-term rating on bank deposits in foreign currency assigned by Moody's Investors Service and В+ assigned by Fitch Ratings. One can get detailed information from Zhanna Mambetova PR manager of Bank CenterCredit JSC by tel. 59-86-03, e-mail: zmambeto@centercredit.kz [2005-07-28]