ALMATY, April 6 Kazakhstan's biggest lender,
Kazkommertsbank (KKB), needs to come up with a plan
how to create 908 billion tenge ($2.9 billion) in loan loss
provisions by April 10, the bank said on Thursday citing a
central bank order.
The Central Asian nation's central bank said last month a
state-run "bad bank" would buy 2.4 trillion tenge ($7.5 billion)
of bad loans from Kazkommertsbank, paving the way for a takeover
by its closest rival, Halyk Bank.
This month, the central bank instructed KKB to implement a
number of corrective measures, including limitations on payments
of dividends and bonuses, as well as asset disposals, KKB said
in a statement on Thursday.
By April 17 KKB must also submit to the central bank an
action plan aimed at strengthening its internal controls and
risk management systems as well as outlining how it will
implement the corrective measures.
KKB did not say what penalties it could face for missing the
deadlines set by the regulator.
(Reporting by Olzhas Auyezov; Editing by Jon Boyle)