Top Kazakh Bank on the Block for Under $1 May Need $738 Million

Kazakhstan’s Halyk Bank may have to inject at least 230 billion tenge ($738 million) into Kazkommertsbank, the troubled lender it’s set to buy for less than $1 after a state bailout, according to two people with knowledge of the matter. The cash, coming after the government stumps up 2.4 trillion tenge to shift off Kazkommertsbank’s balance sheet its loans to BTA Bank, would enable the lender to keep operating, the people said, asking not to be identified given the sensitivity of the matter. The Kazakh government is undertaking its biggest bank rescue since the global financial crisis led to $20 billion in debt restructuring by lenders in the Central Asian nation, Bloomberg News reported. Halyk said last month there is an “80 percent chance” of reaching a deal to buy Kazkommertsbank after President Nursultan Nazarbayev, the longest-serving leader in the former Soviet Union, sanctioned a bailout. Read more.
Location