New CEO for BTA Bank appointed
Feb 26. Tengrinews
Magzhan Auezov, a Kazkommertsbank Member of the Board, has been appointed the new CEO of BTA Bank, Tengrinews reports citing the press office of the Bank.
The BTA Bank Board of Directors made a decision about early termination of the previous CEO Kadyrzhan Damitov. Mr. Damitov will continue his work as a representative of Samruk-Kazyna on the Board of Directors of BTA Bank.
Magzhan Auezov was appointed the new CEO of the BTA Bank. Mr. Auezov will remain a member of the board at Kazkommertsbank and will lead the two banks through the process of integration.
“The decision was made in the wake of the sales of BTA Bank stock by its main shareholder Samruk-Kazyna Sovereign Wealth Fund to a consortium of Kazakhstan-based Kazkommertsbank and businessman Kenes Rakishev,” BTA Bank announced.
“We are satisfied with the new appointment. The BTA management has to create practical and workable mechanisms of cooperation of two two banks before the integration actually takes place. At the same time, it is important to ensure full performance of the bank in the best interest of the already existing clients, ” Nina Zhusupova of the BTA Bank Board of Directors said.
The Chairman of BTA Bank’s Board of Directors Kenes Rakishev noted that Magzhan Auezov is one of the most efficient managers in Kazakhstan’s banking industry. “The BTA Bank Board of Directors hopes that his experience of working in major Kazakhstan banks would help him effectively manage and bank and find solutions in connection with the deal,” Mr. Rakishev said.
Magzhan Auezov, an alumnus of Columbia University and Georgetown University, has been a Kazkommertsbank Member of the Board since 2002.
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BTA suspends lending operations in the wake of 20% currency devaluation
Feb 26. Tengrinews
BTA has suspended its lending operations in the wake of the 20% currency devaluation, Tengrinews.kz reports, citing the Bank’s Press Service.
According to the Bank, suspension of consumer lending and mortgage program is a temporary measure. The Bank elaborated they need to reconsider lending conditions following the currency devaluation.
“After respective decision are taken, which is by February 28, the Bank will resume its lending operations to solvable borrowers”, the Press Service said.
Starting from February 11, 2014 Kazakhstan’s Central Bank decided to stop supporting the tenge exchange rate, decrease currency interventions and stop interference with shaping the tenge exchange rate.
BTA is a Kazahstan-based bank, 3rd in terms of assets as of August 1, 2013. Established in 1991, the bank was bailed out by the Government back in 2009: Samruk -Kazyna Sovereign Wealth Fund purchased 75.1% in the Bank. Following the Government’s bail out, BTA defaulted on $12bn of debt and agreed a restructuring that saw foreign creditors take a $7bn haircut. A second restructuring for another $11bn was concluded late 2012.
KazKommertsBank and BTA are to merge before the end of the year, Tengrinews.kz reported February 6. That day KazKommertsBank said that the lender and entrepreneur Kenes Rakishev would buy 46.5% in BTA each from Samruk-Kazyna Sovereign Wealth Fund. KazKommertsBank would pay about $465 million for its share. The two banks are to merge following the deal.