Kazakhstan Chamber of Commerce in the USA

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BTA revises first-half loss 0

Posted on October 29, 2011 by Alex

BTA Bank, Kazakhstan’s third largest lender, posted  on Friday  a revised net loss of KZT102.6 billion ($693 million) for the first six months of 2011. In August, BTA  had reported a net loss of KZT48.4 billion ($327 million) for the first half, citing preliminary results.

The bank attributed the difference between the  final and preliminary net loss to a higher corporate tax  charge for 2010, payment of which was deferred until the first-half 2011 reporting period.

BTA has struggled to return to profitability since the government takeover in 2009, and  remains burdened by  non-performing loans and punishing debt.  Despite market jitters, the bank has been able to meet all of its debt  coupon  payments so far, but analysts warn that further support by the government will be necessary to deal with the bank’s bad loans, a prerequisite for any future growth.

Despite assurances by the state-owned holding company SamrukKazyna, which holds an 81.5% stake in BTA, that it is ready to inject more funds into the lender if required, its 2018 bond is trading at around 49 cents on the dollar  and the 2025 issue is trading around 26 cents on the dollar.

SOURCE: Kazakhstan Daily News Brief, dated October 24, 2011 available at http://silkroadintelligencer.com/wp-content/files/srikznewsbrief_oct24_2011.pdf

 



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