ASTANA Feb 13 Kazakhstan plans to inject 2
trillion tenge ($6.2 billion) into its state-owned 'bad bank',
the Problem Loans Fund, in order to buy distressed assets from
local banks, central bank deputy chairman Oleg Smolyakov said on
The capital injection will come from the state budget and
will be partly financed by an increased transfer from the state
oil fund, said Economy Minister Timur Suleimenov, who spoke to
parliament alongside Smolyakov.
The International Monetary Fund said this month that
resolving the issue of bad loans, some of which are yet to be
recognised, is the main challenge facing the oil-exporting
Central Asian nation.
Officials did not name any banks that might offload their
bad assets to the fund, but the market's focus is likely to be
on Kazkommertsbank (KKB).
Halyk Bank , Kazakhstan's largest bank,
which is in talks to take over Kazkommertsbank, said last month
it wanted the latter to get rid of bad assets before a deal is
KKB has an outstanding loan of $7.5 billion, around half its
assets, to BTA, a former bank that is now a distressed asset
management company. BTA has so far missed no repayments on that
debt, but the outlook is uncertain.
The capital injection into the Problem Loans Fund was part
of a broader budget revision based on an average Brent crude
price of $50 per barrel instead of $35 per barrel in the
original document. Brent crude was trading around $56.40 on
The revised draft assumes economic growth of 2.5 percent
rather than 1.9 percent and an average tenge exchange
rate of 330 per dollar this year, instead of 360 per dollar.
Additional spending is set to increase the budget deficit to
1.548 trillion tenge ($4.8 billion) from 578.1 billion tenge.
(Reporting by Raushan Nurshayeva; Writing by Olzhas Auyezov;
Editing by Vladimir Soldatkin and Mark Trevelyan)