Kazakhstan Chamber of Commerce in the USA


Alliance loses $2 billion in 2009

Posted on May 19, 2010 by KazCham

(SRI) – Alliance Bank reported a net loss of KZT299 billion ($2.03 billion) in 2009, compared to a loss of KZT386 billion ($2.63 billion) a year earlier, according to the bank’s financial statements.

Its assets declined KZT748 billion ($5.09 billion) to KZT419 billion ($2.85 billion) in 2009. Alliance ended 2009 with a negative capital of KZT526 billion ($3.58 billion).

Alliance, which was the first Kazakh bank to default on its debt in 2008, completed its debt restructuring in March, reducing its total debt to $1.1 billion from $4.6 billion. As a result of the restructuring, state-owned holding and investment company Samruk-Kazyna now holds a 67-percent stake in Alliance, while its creditors control the remaining 33 percent. Samruk-Kazyna is reportedly seeking a buyer for its stake in Alliance.

Alliance plans to begin borrowing abroad next year when international capital markets open for Kazakh lenders, Alliance CEO Maksat Kabashev said in March.

BTA Bank, Temirbank, and Astana Finance, three other lenders which had declared default in 2008, are still in negotiations with creditors, seeking to restructure a total of approximately $15 billion.

SOURCE: http://silkroadintelligencer.com/2010/05/13/alliance-loses-2-billion-in-2009/

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