In the News
Knowledge. Integrity. Results.

The Foretold Fate of the Push Toward Economic Stability – The Varied Approaches to Tackle the Crisis Converging Around Government Intervention will Create Different Paths to a Patchy and Uneven Recovery

Kazakhstan this week released further details of government-sponsored plans to cope with the global financial crisis.

The government has earmarked 20% of Kazakh GDP to the widespread range of stabilisation and growth measures that will, according to Alexander Mirtchev, director and member of the board of Kazyna-Samruk, ensure Kazakhstan is best placed among all the emerging economies to cope with the global financial crisis.

The Kazyna-Samruk fund will spend up to $4bn to acquire up to 25% of common shares of each of the country's four top banks - BTA Bank, Kazkommertsbank, Halyk Bank and Alliance Bank - and will inject a further $3bn into the banks through subordinated loans and preferred shares.

Kazakhstan's banks have $11bn-$12bn of redemptions and interest payments to meet in 2009, but, according to Mirtchev there will be no defaults among Kazakhstan's top banks.

A distressed asset fund set up with Renaissance Capital, will also buy up troubled assets. Mirtchev would not comment on the size of this fund.

For more on this story, go to www.euroweek.com, subscription required.