BTA minority shareholders may decide against second restructuring program

December 27. Interfax-Kazakhstan. Almaty

BTA minority shareholders may decide against second restructuring programThe existing decision-making procedure at BTA Bank allows the minority shareholder to block the decision about the second restructuring program, said the head of the National Bank of Kazakhstan, Grigory Marchenko.

“Though the controlling stake belongs to Samruk-Kazyna (…) the decision (to launch another debt restructuring program – If-K) is not final,” Mr Marchenko told journalists Tuesday. He explained that this was called “the principle of supermajority”, which is usually applied in decision making to take into consideration the opinion of the creditors.

As reported, Kazakhstan-based BTA Bank announced December 22 its plans to restructure part of its debts. The plan will be discussed at a general shareholders’ meeting on January 26, 2012 in Almaty.

The proposed restructuring will relate to the Bank’s liabilities to its creditors under outstanding obligations entered into during the restructuring process completed in 2010.

“Restructuring is an urgently needed measure which if timely taken should ensure further normal functioning of the Bank, strengthen its financial condition and potentially restore its position in the market,” the bank said.

The bank noted that servicing deposit transactions, payments under loan commitments to its customers, money transfers by individuals and legal entities as well as payment card transactions will continue to be made in the ordinary course.

In September of 2010 BTA Bank completed debt restructuring, as a result of which the bank’s debts reduced from $16.65 billion to $4.2 billion.

After the restructuring National Welfare Fund Samruk-Kazyna became the major shareholder of BTA Bank (81.48%). The other 18.5% is owned by the creditors that were not affected by the restructuring.

In 2010 BTA Bank was ranked 16th by asset size among the CIS banks and third among the 39 commercial banks of Kazakhstan by the Interfax-1000 CIS Banks Ranking prepared by the Interfax-Economic Analysis Center.