Kazakh bank Alliance 2009 loss narrows to $2 bln

May 12. Reuters. ALMATY

Kazakhstan’s sixth-largest bank Alliance reported a 299 billion tenge ($2 billion) net loss in 2009, an improvement from a loss of 386 billion tenge a year earlier.

Alliance last year became the first Kazakh bank to default on its debt and seek a restructuring, blaming its problems on bad loans and fraud by former managers who have denied any wrongdoing.

Alliance completed the debt restructuring in March, reducing its total debt to $1.1 billion from $4.5 billion. Kazakh state welfare fund Samruk-Kazyna, which now holds a 67 percent stake in Alliance, has said it will sell it in the next few years.

Three other Kazakh lenders, BTA, Temirbank and Astana Finance, also defaulted in 2009.