Moody’s sees Kazakh banks NPLs at 30 pct by end-09

Oct 29. Reuters. MOSCOW

Moody's sees Kazakh banks NPLs at 30 pct by end-09Bad loans in Kazakhstan’s banking sector are likely to rise to 30 percent of the total credit portfolio by the end of this year, Moody’s ratings agency said on Thursday.

“Our forecast is the Kazakh banking system will continue to increase the volume of bad debts,” senior analyst Yaroslav Sovgira told a conference in Moscow, adding that the loan portfolios as a whole will likely be reduced.

“But in case of positive developments, new investment sources are possible into the Kazakh banking system, which could come from Russia, possibly from China… which could replace the Western money.”