Kazakhstan: Kazkommertsbank To Repay NB’s Loan in 2017

Kazakhstan: Banking System Undermined by Expensive Credit

The management of JSC Kazkommertsbank (Qazkom) has never discussed any rescue programmes and partially repaid the loan attracted from the National Bank.

“In view of active discussions spread in mass media regarding financial condition of the bank, Kazkommertsbank (Qazkom) views it important to inform interested parties of the current situation in the bank.  Last week, Bloomberg agency informed about an emergency loan  provided to Qazkom, “the first step in what could be a rescue that may reach 1.5 trillion tenge ($4.5 billion). The bailout is among the alternatives under discussion between officials from Kazkommertsbank JSC and the central bank.”

“Kazkommertsbank officially informs that it does not hold any negotiations with the National Bank and the government about such a bailout,” the press service of Qazkom told Kazinform.

The bank confirmed that on December 14 it requested for a short-term loan from the National Bank to the amount of 400.8bln tenge within standard procedures on provision of short-term liquidity to the second-tier banks.

The loan was granted as per market conditions based on repayment terms.

“The Bank used standard ‘window’ of the National Bank which is available for all the banks to support the level of their short-term liquidity ahead of December and New Year holidays. In the past 10 years, the Bank has applied for this procedure for 10-12 years,” the KKB stresses. Due to this loan, Qazkom could ensure a number of quick unplanned payments on the eve of closing financial year 2016. Besides, the Bank got ready for a splash of seasonal payments and transactions through Qazkom divisions and ATMs which serve today 9 clients of the country’s other banks too.

“Every year, during December and New Year holidays, the turnover of cash operations and payments increases sharply. For instance, in December 2014, Kazakhstanis cashed in around 90bln tenge. In December 2015, this sum approaches 140bln tenge. By the end of December 2015, we expect this amount to hit 200bln tenge,” the press service of Bank explained.

Currently, Qazkom has enough reserves of liquidity for ensuring non-stop functioning of the Bank during the oncoming New Year holiday, for conducting any payments,  account- and deposit-related operations.

“The Bank fulfills all prudential regulations on capital adequacy and liquidity level. Qazkom has already repaid 200bln tenge of the loan to the National Bank. The Bank urges its customers to trust in confirmed information only and official statements of shareholders and leadership of the Bank as well as of the National Bank and government.”