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Kazakh KKB, Halyk to get $1 bln each in Jan -govt
January 19, 2009 / 11:27 AM / 9 years ago

Kazakh KKB, Halyk to get $1 bln each in Jan -govt

ALMATY, Jan 19 (Reuters) - Kazakhstan’s second-largest bank Kazkommertsbank (KKB) KKGByq.L KKGB.KZ and No.3 lender Halyk (HSBKq.L) HSBK.KZ will get $1 billion each in state funds this month, the government said on Monday.

Last week, the two banks signed deals paving the way for their partial nationalisation. Kazkommertsbank is due to get a $300 million capital injection while Halyk is set to receive $500 million.

Both banks will sell stakes of up to 25 percent to the national welfare fund Samruk-Kazyna as part of the deal.

They will also get additional funding as part of the government’s $21 billion economic stimulus plan, Samruk-Kazyna Chief Executive Kairat Kelimbetov said.

“By January 31 we will have transferred $1 billion to each of the two banks,” the government statement quoted him as saying. It said the $2 billion included capital injections.

Kazakh banks have been hit hard by the global financial crisis due to their reliance on foreign borrowing, heavy involvement in construction and real estate and aggressive expansion in the last few years. (Writing by Olzhas Auyezov; Editing by David Holmes)

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