OREANDA-NEWS. July 07, 2009. The Agency of the Republic of Kazakhstan on Regulation and Supervision of Financial Market and Financial Organizations (AFS) released a statement at its website http://www.afn.kz, reported the press-centre of KASE:

According to sub-item 3) of item 9 of article 20 and sub-item f) of item 2 of article 47 of Law of the Republic of Kazakhstan "On Banking in Republic of Kazakhstan", and item 21 of the Regulations on the Agency, approved by Decree No. 1270 of the President of the Republic of Kazakhstan dated December 31, 2003, the Chairman of the Agency of the Republic of Kazakhstan on Regulation and Supervision of Financial Market and Financial Organizations (the Agency) on July 3, 2009 issued order No. 206, to release from duties Chairman of Eurasian Bank Z. Ertaev and his deputy A. Ageev and accords on their appointments were called off.

The Order was issued as newly disclosed facts of law violations including submission of inaccurate reporting to the Agency in the period Ertaev and Ageev were working for Alliance Bank. In particular, when Ertaev and Ageev were managing Alliance Bank a number of deals between the bank and non-residents were reflected inaccurately in the reporting.

As a result, in April and May 2009 the Bank accumulated losses causing negative value of own capital.

The Agency says it has no pretensions to operation of Eurasian Bank and activity of Ertaev and Ageev regarding their work in Eurasian Bank.