OREANDA-NEWS. April 28, 2009. Kazakhstan is not intending to provide banks restructuring their debt with state-backed guarantees; crediting organizations will have to solve debt related problems independently, reported the press-centre of KASE.

Global credit crunch badly affected Kazakhstan, slowing its economy, forcing state authorities to shed USD25 m. seeking stability. A larger portion of funds was given to banks, having nationalized largest Kazakhstan-based banks BTA Bank and Alliance Bank, and purchasing a stake in Kazkommertsbank and Halyk Bank.

"Under no circumstances state guarantee will be applied to Alliance Bank or any other bank" - Elena Bakhmutova chairman of financial supervision agency said at a conference.

Aid volume has been fixed, and "Kazakhstan authorities do not intend to increase the volume without control, she added.

In March BTA Bank announced a possibility foreign debt may be restructured. In April Alliance Bank addressed creditors bank debt may be restructured.

Obligations of the two banks devalued as investors were expecting USD15 bn. debt of the two to be restructured.

"There (in the restructure process) may be many options: redemption on discount, and substitution (of debt)", - said Bakhmutova.

According to Bakhmutova, before the year end provisions (on "bad" credits) may be increased up to 25 % of loan portfolio from 14.6 %.

"The most conservative approach is 30 %. There are no toxic assets in Kazakhstan. There will be no surprises, what happened - had already happened", - chairman said.