BTA Bank exerts every effort to maintain the customers? trust: A.Dunayev

ALMATY. February 16. KAZINFORM /Daniyar Sikhimbayev/ Participation of the state in the capital of BTA Bank provides for significant preconditions for the growth of depositor and creditor confidence. Shareholders and management of the financial institute intend today to preserve the BTA Bank?s status as the leader of the domestic banking system. Vice Chairman of ?SamrukKazyna? National Welfare Fund, Chairman of the Board of ?BTA Bank? JSC Arman Dunayev told Kazinform correspondent about further development of the bank.

Mr. Dunayev, what were the first steps taken by the new leadership of the BTA Bank? Let me remind that the total state investment in the BTA capital should make KZT 251 bln. On February 3 the correspondent account of the BTA received KZT 212 bln. Having received this sum the management of the bank took a decision to fill all ATMs with Kazakh tenges and American dollars. As a result, when the National Bank decided to devaluate the tenge on February 4, the problem of withdrawing money from the accounts was resolved. The remaining KZT 39 bln will be on a special account of the National Bank till the Government and ?SamrukKazyna? Fund take a decision on additional capitalization of the BTA Bank. And it can happen very soon. The Bank also took a decision on timely payment since late January the volume of payments in the bank stood at USD 150 mln. This problem has already been solved to date. Thus, if on February 4 the volume of requirements of the average borrower was KZT 100 mln, on February 6 this figure was reduced to KZT 37 mln. By this the Bank granted primarily the demands of the customers for payment of salaries, taxes and pensions and a significant part of depositors. Moreover, as a stakeholder the BTA Bank has provided a part of cash to subsidiary Temirbank for solution of similar problems. What are the challenges facing today? We have concluded an agreement with ?SamrukKazyna? Fund on participation of the BTA in the programs on stabilization of the country?s economy initiated by the state, in particular on support of small and medium business. According to the results of preliminary analysis we consider the bank?s small and medium business portfolio as healthy and active. This portfolio will maintain the bank?s activity and will allow to direct the collected funds to refinancing the existing portfolio or granting new loans to this sector of economy. As for the work with individuals, the BTA and ?SamrukKazyna? Fund intend to sign an agreement on refinancing the current mortgage portfolio. As a result of devaluation, a part of the portfolio fell under certain stress. Nevertheless, the Bank continues to work with crediting of consumers, and those clients who have faithfully fulfilled their obligations to the Bank, may be proposed debt restructuring and reduction in interest margins. And here I would like to emphasize that the most important thing for the bank is to exert every effort to maintain the customers? trust. What is the strategy of further development of the BTA Bank? As is known, 47% of the bank?s loan portfolio is historically connected with financing the projects abroad that is determined by the bank?s earlier strategy. KPMG Company together with the current auditor is expected to hold an independent auditing financial examination in order to determine the quality of the assets, loan portfolio and analyze the deals implemented by the bank in foreign countries. This work will last for about 2.5 months. Upon completion of this period we will speak on further strategy of the bank and the companies entering its structure. Does intervention of the state in the Bank?s capital guarantee protection of its customers? rights? Money placed on the bank?s deposits is the money of the people. Therefore, the state is interested in its preservation. In this case it will require openness and transparency of the measure, including the actions taken by the board of directors, bank managers, in order not to lose money. It means we should trust those financial institutes which capital partially belongs to the state. These banks will strive for pursuing an adequate policy connected with deposits, financing customers and effecting payments. At present I consider inappropriate withdrawing money from the deposits and converting it into currency, since the devaluation has already passed. And I recommend to keep money in the banks. Thank you for the interview.