ASTANA Feb 3 Kazakhstan's central bank will
propose using state funds to support large local banks after
evaluating their asset quality this year, central bank chairman
Daniyar Akishev said on Friday.
Akishev told a government meeting that the proposed state
support should also involve capital injections from banks'
existing shareholders. He provided no details and did not name
any particular banks.
One of Kazakhstan's biggest lenders, Halyk Bank
, is in talks to acquire rival Kazkommertsbank
, but has said the latter needs to clean up its bad
Half of Kazkommertsbank's assets, totalling $15.7 billion,
are tied up in a single loan to BTA, a former bank that is now a
distressed asset management company. BTA has missed no
repayments on that debt.
Still struggling to recover from the 2008 global financial
crisis, Kazakh banks have in the last few years been hit by the
plunge in the price of oil, the main export of the former Soviet
republic, which slowed down economic growth and prompted a
collapse in property prices.
(Reporting by Raushan Nurshayeva; writing by Olzhas Auyezov;
editing by Polina Devitt/Jeremy Gaunt)