Kazakh C.bank To Seek Legal Evaluation Of Investing In IBA Bonds

Kazakhstan to enable Clearstream for govt securities in 2018

(Reuters) – May 24 Kazakhstan’s state-managed pension fund invested $250 million in Azerbaijan’s now troubled state-run bank IBA, and Kazakhstan’s central bank will seek legal evaluation of this investment decision, central bank head Daniyar Akishev said on Wednesday.

The International Bank of Azerbaijan, the country’s biggest lender, suspended payments on some liabilities and said last week it was seeking support to restructure more than $3 billion of debt.

The decision to buy through an offshore company $250 million of IBA’s 10-year bonds with a coupon paying 8.25 percent annually was taken in October 2014 by central bank officials at the time, Akishev said.

That investment decision “is raising questions”, Akishev said, adding that Kazakh President Nursultan Nazarbayev had been informed about the situation and “relevant” law-enforcement bodies were dealing with the matter. (Reporting by Mariya Gordeyeva; Writing by Dmitry Solovyov; Editing by Maria Kiselyova)