Kazakhstan Urgently Looking for Bank to Take Over Tsesnabank

The Kazakh authorities are urgently looking for a bank to take over no. 2 lender Tsesnabank as they believe it needs new financing to prevent a collapse, three sources familiar with the discussions told Reuters. Officials from the government and central bank have approached at least three other Kazakh banks and hope to tie up a deal in February, the sources said. They are offering financial incentives for any bank prepared to take it over, Reuters reported. The authorities want to avoid liquidating the bank, which has over $1 billion in retail deposits and received a $1.8 billion state bailout in September, because of the impact on the wider economy, the sources said. They want to move quickly to prevent a run on deposits. Also, some analysts say a presidential election could be called in the spring. A spokesman for the election commission could not be reached for comment. President Nursultan Nazarbayez would almost certainly be reelected but the authorities would be keen to tie up a takeover before any poll. Read more

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