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ALMATY, June 15 (Reuters) - Kazakhstan’s Halyk Bank , said on Thursday it would inject 185 billion tenge ($585 million) into Kazkommertsbank after buying almost full control of the troubled lender.
Halyk Bank said in a statement it would buy a 96.81 percent stake in Kazkommertsbank (KKB) for a symbolic 2 tenge ($0.006), in a deal that should be finalised before the end of the year.
The banks signed a provisional takeover agreement in March, a deal supported by the government and central bank to strengthen the country’s ailing banking sector.
In line with preliminary agreements, Halyk said on Thursday the deal was conditional on KKB selling 2.4 trillion tenge ($7.5 billion) of bad loans to Kazakhstan’s state-run “bad bank”.
The former Soviet republic has struggled to recover from the 2008/09 global financial crisis and its banking sector has been beset more recently by bad loans since the sharp slide in the price of oil, Kazakhstan’s main export. (Reporting by Mariya Gordeyeva; Writing by Olzhas Auyezov; Editing by Andrey Ostroukh and Mark Potter)