OREANDA-NEWS. October 31, 2008. As previously announced, principal agreement has been reached earlier this week between the Government and the major shareholders of Halyk Bank, Kazkommertsbank, and Alliance Bank, whereby the state will provide financial support to these banks as part of the banking system stabilization plan announced by the Government, the National Bank and the Financial Supervision Agency, reported the Official website http://en.government.kz.

In today’s meeting with the Prime Minister of Kazakhstan, the Chairman of the Board of BTA Bank Mukhtar Ablyazov gave a positive assessment to the Government’s latest initiative. Given the lack of bank holding company and large shareholders in BTA Bank, Mr.Ablyazov acknowledged his intent to discuss immediately with the shareholders of the bank the possibility of re-capitalization of the bank by the state.

Subject to approval by the shareholders, the state will inject additional capital into the bank through Sovereign Wealth Fund SamrukKazyna, by acquiring the newly issued common shares of the bank equivalent to up to 25% of the bank’s equity capital, as well as new preferred stock to be issued by the bank, all in accordance with the current legislation.

The Prime Minister of the Republic of Kazakhstan confirmed that SamrukKazyna’s participation in the banks’ capital will rely on market principles aimed at strengthening of the banking system of Kazakhstan, enhancing the confidence of depositors, investors and clients, as well as sustaining the adequate levels of lending to the economy.