CA-NEWS (KZ) - President of Kazakhstan Nursultan Nazarbaev held the session in Astana yesterday, where report on the National Bank’s progress in 2011 was discussed, the presidential press service said.

The meeting was attended by Head of Presidential Administration Aslan Musin, Chairman of the National Bank Gregory Marchenko, Deputy Prime Minister Kerim Kelimbetov, Chairman of the Board of National Welfare Fund "Samruk-Kazyna" Umirzak Shukeev, Deputy Head of Presidential Administration Bakhyt Sultanov, Finance Minister Bolat Zhamishev, Minister of Economic Development and Trade Bakhytzhan Sagintaev, as well as the Head of Committee for Control and Supervision of Financial market and Financial Organizations within the National Bank.

"The Government should help stimulate activity of domestic banks. Apart from that, it should mainly focus on stabilizing BTA and Alliance Banks that have undergone debt restructuring," the press service added citing Nazarbaev.

Earlier in 2009-2010 three Kazakhstan-based banks – BTA, Alliance and Temir – resorted to debt restructuring schemes. BTA is currently negotiating a second debt restructuring with its creditors.

Head of State pointed to the poor quality of the loan portfolios and low lending activity. He emphasized that threats to the global economy are still there, Eurozone problems are still remaining unsolved. And all of these factors will have their effect on the national financial system of Kazakhstan.

President gave some specific instructions related to the tenge exchange rate, anticipated inflation corridor of 6-8% and streamlining of the nation’s accumulation pension funds.

Besides, he broached some aspects of the National Fund’s assets management, further development of the insurance market, and concerted monetary policies with the Customs Union member states.

BTA Bank defaulted in 2009. In September 2010, BTA Bank completed the first restructuring of its debt. As a result, the bank’s debt was slashed from $16.65 to $4.2 billion. After the restructuring it is controlled by National Welfare Fund "Samruk-Kazyna"(81.48 percent). The bank’s creditors received over 18 percent of shares after the restructuring.

BTA Chairman Anvar Saidenov proposed a second restructuring letter to shareholders to evade bankruptcy on December 23. The bank defaulted on its $150 million coupon payment in January 2012.

Source central asian news service

http://en.ca-news.org/news:466131/