State bails out BTA Bank - Nazarbayev

    At an expanded session yesterday of the Political Council Bureau of the Nur Otan People’s Democratic Party, head of state Nursultan Nazarbayev said the state has bailed out BTA Bank JSC, Kazinform reports.
    “If the government and the Samruk-Kazyna National Welfare Fund did not take measures in this area, then BTA Bank would have to declare bankruptcy,” the president said.
    According to member of the Board of Directors at BTA Anvar Saidenov, this would have caused great negative social effects. The situation at BTA was complicated in late 2008 when the bank secured internal and external payments through loans from the National Bank.
    Saidenov said the measures taken by the Financial Supervision Agency were timely.
    The government decision to purchase shares in BTA Bank (78.14%) was taken to protect depositors, the government said.
    The Samruk-Kazyna National Welfare Fund will provide additional capitalization for the bank of KZT 251.3 billion. This measure is designed to allow BTA – the largest bank in Kazakhstan to continue to operate during the crisis, according to Kazinform.