State-run BTA Bank remains in a “zone of turbulence” as bad-loan recovery was less than expected, Kommersant reported, citing an interview with Umirzak Shukeyev, head of Kazakhstan’s sovereign-wealth fund.
Kazakh officials gave striking oil workers one week to accept job offers arranged by the government in a bid to subdue the worst unrest since the former Soviet republic won independence two decades ago.
BTA Bank has access to about 40 billion tenge ($271 million) of funding via repurchase transactions with the central bank as inflows of corporate and household deposits resumed, said BTA Chairman Anvar Saidenov.
Kazakhstan’s sovereign wellbeing fund Samruk-Kazyna said it will support BTA Bank’s proposed debt restructuring and the situation at the lender will be stabilized, according to Umirzak Shukeyev, who heads the fund.
Kazakhstan’s sovereign-wealth fund ordered BTA Bank, which is seeking a second debt restructuring in as many years, to sell construction assets as part of an initiative to make state-controlled companies more efficient.