OREANDA-NEWS. July 14, 2009. Alliance Bank (Almaty), a company listed on Kazakhstan Stock Exchange (KASE), provided KASE with a press release, reported the press-centre of KASE:

Alliance Bank (the Bank) announced the bank came to an agreement with creditors on debt restructuring, which is an essential condition required for National wellbeing fund Samruk-Kazyna (Samruk-Kazyna), to buy a share in the ailing bank.

On July 7, 2009 the Bank and the Creditor's Committee consisting of 9 largest creditors of the bank, signed a Memorandum of Understanding on restructuring of bank's debt. The agreement says the creditors agreed on proposed variants of debt restructuring. The debt is to be restructured before November 1, 2009.

In the nearest time the Fund and the Bank will sign an Agreement according to which the Fund will buy a controlling share in the bank after successful restructuring of the debt. After the deal is completed the Fund will recapitalize the Bank to bring the bank's capital in compliance with prudential norms.

"Foreign debt restructuring is a part of bank modification process introduced in recent months. The Bank improved its branch network, business-processes and staff to boost operational efficiency" - Alliance Bank chairman Maksat Kabashev said. "We are grateful to the Kazakhstan government, the financial supervision agency, Fund Samruk-Kazyna for the support and an afforded opportunity for the bank to participate in the measures to fight the crisis, intended to support the Kazakhstan economy amidst the global credit crunch.

We express our gratitude to our clients that remained with us in this harsh time. The Bank proved to be a reliable and stable financial institution, valuing interests of Kazakhstan depositors as the highest priority. Alliance Bank has always relied on transparency and trust principles. The principles once again proved the rightness of our business approach.

We express gratitude to our advisors - Lazard Freres, White&Case and John Howell&Co, and creditors believing in the bank and ready to cooperate. We are sure; Alliance Bank will soon again be a leader on the Kazakhstan financial market".

"The agreement between the Bank and the Creditors Committee is of a great importance for the entire Kazakhstan banking system. This is a signal of the recovery. We hope, the current management will successfully finish this complicated process, at the end of which Alliance Bank will have a positive capital and attract new investments", - financial director of Fund Samruk-Kazyna Abay Iskandirov said.