Yesterday in Almaty BTA top management – one of the biggest financial institutes of the country announced unprecedented reduction of their debts. The experts made a detailed talk on restructuring and shared their plans for near future.

Anvar Saidenov, the board’s chair reminded: in early-2010 the bank’s indebtedness reached USD 16,55bn. The restructuring process lasted 19 months. In this period they managed to reduce (write off, in other words) financial liabilities by USD 6,75bn. And this is a net “fruit” of huge work done by the bank’s team together with the Government, SamrukKazyna, RK AFC and foreign experts.

All the previously issued securities were annulled and the creditors received USD 945mn in cash in exchange. Besides new debt securities were issued and an agreement on renewable crediting line on trade funding – signed. Concurrently they prolonged repayment terms for the rest indebtedness from eight to 20 years.

Procedures envisaged by the restructuring plan, among other things restored the bank’s own capital up to an adequate level – KZT 108,8bn, - A. Saidenov said. And on eight months’ results the assets’ size made up KZT 2bn at least, while net profit in this period exceeded KZT 1 trillion.

From now on the bank intends to restore its pre- crisis indexes without drastic changes in their business strategy, i.e., internal market remains among priorities.

By 2014 half of their loan portfolio will be filled with corporate (big) business and 30% and 20% with SMSB and retail clients correspondently, - BTA authorities plan. The deposit base is to be doubled in comparison to 2008 at the account of increasing individuals’ and legal bodies’ deposits.

Aset Kalymov

Almaty