Former Kazakh Alliance CEO suspended from new job

July 7. Reuters. ALMATY

Kazakhstan’s banking watchdog has suspended the former chief executive of Alliance bank (ALLBq.L) from his current job as head of Eurasian bank EUBN.KZ, another local lender, Eurasian bank said on Tuesday.

Alliance, Kazakhstan’s fourth largest bank, is in talks to restructure its $4 billion debt after saying it would lose $2-3 billion due to bad loans and asset pledges in favour of other companies which have failed to repay their debts.

“We have an order from the Financial Supervision Agency (suspending Chief Executive Zhomart Yertayev),” a Eurasian bank spokesman said, declining to comment further.

In a statement published on its website, the agency said that under Yertayev, who had run Alliance between 2002 and 2007, Alliance failed to correctly report some foreign transactions.

“As a result, in April-May 2009 the bank recorded losses leading to negative equity,” it said. Yertayev was not available for comment.

Eurasian bank, a medium-sized lender, is owned by the key shareholders of London-listed mining giant ENRC – Alexander Mashkevich, Patokh Chodiyev and Alijan Ibragimov.