BTA may restructure Foreign Debt

18.03.2009
    Kazakhstan's biggest bank BTA, effectively nationalised last month, said on Tuesday it may restructure some of its $12 billion foreign debt in a move largely anticipated by the market.
    "BTA, together with its advisors Goldman Sachs and White & Case is working on a new development strategy, and, as part of it, is considering the possibility of modifying the structure of its external liabilities which would ensure the bank's stability in the long term," it said in a statement.
    BTA gave no other details of the possible restructuring.
    Kazakh banks have been hit hard by the global financial crisis after years of rapid growth fuelled by foreign borrowing. The government took over BTA in early February saying it would have collapsed otherwise.
    Since the takeover, BTA bonds have traded at about 20-40 percent of face value, the price that analysts say implies expected restructuring, Reuters reports.