Kazakh bank BTA halts debt interest payments

Kazakh bank BTA halts debt interest paymentsJuly 24. Reuters. ALMATY

Kazakhstan’s largest bank, BTA , has halted interest payments on its debt, the bank, which stopped principal repayments in April, said on Friday.

BTA, nationalised in February, is in talks with creditors to restructure its $13 billion debt and avert bankruptcy after losing $7.9 billion last year.

“…BTA announces that it has decided that with effect from 22 July 2009 it will extend the scope of the current moratorium on repayment of its financial indebtedness and that it was also suspending interest payments on its financial indebtedness,” it said in a statement.

BTA said it had held a meeting with creditors on Thursday “which may lead to the formation of a creditors steering committee”.

“The meeting did not seek endorsement in any way of the proposed framework for the restructuring process and was informative only,” it said.


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Kazakh bank BTA sees 66-97 pct debt haircuts

July 24. Reuters. ALMATY

Kazakhstan’s largest bank BTA BTAS.KZ estimates the haircuts it will offer to creditors at 66 to 97 percent, excluding trade finance, the bank said on Friday.

In a presentation published on its website, BTA also said it would offer investors the choice between the NPV equivalent options of discounted cash buyback, rollover and equity conversion, but buyback cash would be limited to $1 billion.