Non-Payment on Part of State Agencies spurred Astana Finance Default - Chairwoman
A lack of payment on the part of local governments and the national railway operator -- Kazakhstan Temir Zholy contributed to Astana Finance’s default, Chairwoman Elmira Ibatullina said in a news briefing on Wednesday according to IA Novosti.
According to Ibatullina, non-payments in 2009 totaled $100 million.
“That amount would allow us to continue to service our obligations and repayments scheduled for 2009, but (Astana Finance) has not received the funds,” Ibatullina said.
Kazakhstan Temir Zholy reportedly did not repay a KZT 3.1 billion ($20.7 million) loan, raised to buy 152 passenger train cars from China.
In addition, Astana Finance had issued loans to developers to acquire properties in Almaty and Astana. The properties have been requisitioned by the authorities with the loans tied up in complicated legal processes.
In the same news briefing, Ibatullina refuted allegations of asset stripping, recently published by newspapers Vremya and Svoboda Slova, according to SRI.