OREANDA-NEWS. September 14, 2009. JSC BTA Bank (“BTA”) announced that BTA signed an Outline of Restructuring Principles (the “Restructuring Principles”) with BTA’s steering committee (the “Steering Committee”) with respect to the restructuring of the financial indebtedness of BTA and its finance subsidiaries (the “Restructuring”).The full text of these non-binding Restructuring Principles which were agreed upon on 3 August 2009, will be posted on BTA’s website at www.bta.kz. The Steering Committee comprises ABN AMRO Bank N.V., Commerzbank Atkiengesellschaft, the D. E. Shaw group, KfW (representing its affiliates DEG - Deutsche Investitions- und Entwicklungsgesellschaft mbH and KfW IPEX-Bank), Euler Hermes Kreditversicherungs AG (acting for and on behalf of the Federal Republic of Germany), Export-Import Bank of the United States, Fortis Investment Management UK Limited, Gramercy Advisors LLC, ING Asia Private Bank Limited, JPMorgan Chase Bank, N.A., Mediobanca - Banca di Credito Finanziario S.p.A., Standard Chartered Bank and Wachovia Bank N.A.

Outline of Restructuring Options

During meetings between the Steering Committee and BTA held on the 3rd and 4th September 2009, BTA delivered presentations including a Management Presentation, a Business Plan Presentation and an Outline of the Restructuring Options as envisaged by BTA, each of which is available for download from BTA’s website at www.bta.kz.

The envisaged Restructuring Options that would be offered by BTA to its creditors in the context of the Restructuring are as follows, applicable to eligible principal and accrued interest:

A Cash Buy back option for a maximum cash amount of USD 1bn with a 82.25% discount

A Medium-term roll over option with a 60% discount

A Subordinated Long-term par roll over option accounting for Tier 2 capital

A Debt to Equity swap option with a 80% discount

In addition, Recovery Notes will be issued to creditors to allow for their participation in BTA’s asset recovery strategy.

The Steering Committee was not involved in preparing the Restructuring Options envisaged by BTA which were presented to the Steering Committee on the 4th September 2009, and have neither approved nor agreed to such Restructuring Options on behalf of themselves or any creditor. BTA and its advisors intend to engage in discussions and negotiations regarding the specific terms of a consensual restructuring arrangement with the members of the Steering Committee on an expedited basis in the first half of September.

The FMSA has requested that BTA agrees with the Steering Committee a memorandum of understanding as a basis for a restructuring and recapitalisation plan and submits it to the FMSA for its approval by 18 September 2009.

Increase in Loan Loss Provisions and Net Liabilities

In addition, KPMG has presented to members of the Steering Committee on 4 September 2009, its findings regarding BTA’s credit exposure, the material elements of which are presented below. Following a recently-completed internal review of its credit exposures, in particular on loans where the exposure is outside Kazakhstan but recorded in BTA Kazakhstan and including those made to off-shore shell companies as well as KPMG UK's recent external analysis, BTA today announces a further KZT400 billion increase in loan loss provisions in addition to those recorded as at 30 June 2009. A presentation made to creditors on 23 July 2009 available for download from BTA’s website at www.bta.kz provides further details about BTA’s financial situation as at 30 June 2009. These provisions had already been increased by KZT1,388 billion since 31 December 2008. Additionally, the Bank notes that under accounts prepared for Kazakhstan regulatory purposes, no provisions are raised against accrued interest but it is written off when it becomes a certain period overdue. The Bank anticipates that an estimated KZT 200 billion would be provided if a provisioning approach was taken. Although these loan provisions have been made, BTA is continuing to pursue all outstanding amounts with all the resources at their disposal, including the appointment of recovery experts.

There are a number of other, individually small adjustments which are likely to further increase net liabilities recorded for Kazakhstan regulatory purposes, by approximately KZT 100 billion in the short to medium term.

BTA Bank also has investments in subsidiaries and associates at a carrying value of KZT233 billion as at 30 June 2009. Under the Kazakhstan regulatory reporting requirements, such investments are carried at cost with gains and losses only recognized upon sale. BTA estimates that the current market value (using various methods) of those investments as at 30 June 2009 was KZT110 billion.

BTA wishes to thank all of its creditors and stakeholders for the support and understanding it has received during this difficult time and looks forward to completing it’s Restructuring in the coming months.