Kazkom starts to pay off debts

"In line with the terms specified in the framework agreement, taking into account the results of the complex audits in Kazkom conducted by the Halyk Bank and the National Bank of Kazakhstan on July 4, 2017, Kazkom has made adjustments to the net worth of its assets for a total of nearly KZT550 billion," The press service of Kazkom.

Starting from June 2, BTA Bank repaid its loan debt in the amount of KZT2.4tn to Kazkom. The bank's press service reported on the use of the resources received.

"Firstly, this repayment of the bank's liabilities in the amount of KZT625bn to the National Bank of Kazakhstan as it had been received by Kazkom from the National Bank in several tranches since December 2016 within stabilization measures to maintain the current liquidity of the bank. In addition, KZT 1 trillion was invested in state treasury securities of the Kazakh Ministry of Finance. At the same time, on July 4, the bank repaid its debts under the REPO operations with securities for the amount of KZT202bn. Moreover, on July 1, 2017, the bank repaid its debt to Samruk-Kazyna Fund in the amount of KZT41bn under BTA Bank's share purchase and sale agreement dd. December 31, 2014," Kazkom says.

According to their information, in order to equalize the open currency position of the bank within the abovementioned operations, Kazkommertsbank concluded a currency swap transaction with the National Bank for 1 trillion tenge for a period of 1 year.

"The remaining liquidity of about KZT570bn will allow Kazkom to service its debts on a scheduled basis, support its operations and resume the process of lending to the economy, small and medium-sized businesses and retail customers," the bank says.

It is noteworthy that the next step under the framework agreement will be the completion of the transaction for acquisition of 96.81 percent of Kazkom's common stock by Halyk Bank with further replenishment of Kazkom's capital.