Kazakhs Aren't Done Paying to Fix Banks After Biggest Rescue

Kazakhstan is running out of time to get the banking system back on its feet. Even after undertaking its biggest rescue since the 2009 global credit squeeze with a 2.4 trillion-tenge ($7.6 billion) bailout of Kazkommertsbank, the rest of the nation’s lenders will require at least 500 billion tenge more to mend balance sheets, according to National Bank of Kazakhstan Governor Daniyar Akishev. But the state aid will come with strings attached, Bloomberg News reported. “We must still understand how much of that sum the central bank will give as subordinated loans to lenders,” Akishev, 41, said in an interview in Almaty. “Maybe we can do it together with shareholders, maybe the whole amount will come from the central bank, with additional capital injections from shareholders.” Crippled by a decade of defaults, debt restructurings and bailouts, banks remain a key stumbling block for the economy following its worst performance since 1998. Read more.
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