Samruk Mulls Aid to BTA, Awaits Debt Overhaul, Kommersant Says

Feb 16. Bloomberg

By Svetlana Antoncheva

Samruk Mulls Aid to BTA, Awaits Debt Overhaul, Kommersant SaysState-run BTA Bank (BTAS) remains in a “zone of turbulence” as bad-loan recovery was less than expected, Kommersant reported, citing an interview with Umirzak Shukeyev, head of Kazakhstan’s sovereign-wealth fund.

Samruk-Kazyna, which holds the government’s stake in the troubled lender, will consider additional capital injections if BTA remains “viable” after its second debt restructuring in as many years, Shukeyev was quoted as saying by the Moscow-based newspaper.

Aid to the lender may take the form of cutting the cost of state funding available to BTA and increasing the interest payments it gets on the wealth fund’s notes used as collateral in repo agreements with the central bank, Shukeyev told Kommersant, adding that Samruk-Kazyna will make “maximum efforts” to increase the bank’s capital.

The amount of possible injections will be decided by creditors, and BTA needs an improved business plan to boost its competitiveness, he said.

State-controlled lenders AO Temirbank and AO Alliance Bank have been stabilized, Shukeyev told Kommersant. While Samruk- Kazyna is discussing consolidating its banking assets, it’s also prepared to divest stakes in the lenders, he said.

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Tragic events in Zhanaozen revealed unpreparedness for solving labor disputes – Shukeyev


The first conclusion after the tragic events in Zhanaozen is the unpreparedness for solving labor disputes, new chairman of the National Welfare Fund “Samruk-Kazyna” Umirzak Shukeyev said in the first since his appointment interview with Kommersant.

A reporter from Kommersant asked: “Aren’t you afraid that staff reductions will lead to a rise in social tensions? The biggest riots in the history of Kazakhstan occurred in Zhanaozen just two months ago. Moreover, among the rioters were workers of the companies owned by Samryk-Kazyna, while you headed the commission of inquiry.”

“There were many reasons that led to the tragic events in Zhanaozen. Today there are different points of view about what happened, from the ill-conceived immigration policy to the intervention of external forces and sabotage aimed at destabilizing the situation in the country. But the first conclusion that we have come to is the unpreparedness for solving labor disputes. Rather than build a dialogue, we only made matters worse leading to massive layoffs of workers. In Zhanaozen, there has been a lack of communication, respect for workers. Once we have settled the conflict and the men returned to work I met with them several times. They gave very valuable advice. They suggested ways to eliminate corruption within the company,” Shukeyev answered.

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Samruk-Kazyna’s consolidated profit up 13 percent in 2011 – Shukeyev


In an interview for Russian daily Kommersant, Chairman of the National Welfare Fund “Sumruk-Kazyna” Umirzak Shukeyev told about the results of the Fund’s work in 2011.

“The final audited financial statements for 2011 will be released in May. According to preliminary estimates, the consolidated profit in 2011, excluding second-tier banks, which under the law are not included in the group of the Fund, is estimated at KZT 594 billion, which is 13% more than in 2010.

All subsidiaries, according to preliminary data, also finished 2011 with a profit. Exceptions are “Tau-Ken Samruk”, United Chemical Company (UCC), the international airport of Aktobe and the Development Bank of Kazakhstan. The main reasons for the negative result of the Development Bank of Kazakhstan were the decrease in the size of the loan portfolio due to low utilization and the increase in expenditures for the formation of provisions. The international airport of Aktobe, which is a natural monopoly, finished 2011 with a loss of KZT 4 million due to inadequately low tariffs for airport services,” Shukeyev noted.