OREANDA-NEWS. February 01, 2010. AFS "with restraint" estimates the crediting growth in Kazakhstan in 2010, - said today the Chairman of Agency of the Republic of Kazakhstan on Regulation and Supervision of Financial Market and Financial Organizations (AFS) Elena Bakhmutova at the press conference in Almaty, reported the press-centre of KASE.

"First of all, it is necessary to emphasize high credit risk which exists today and the possibility to detect and reflect on balances of bank losses due to borrowers, related to real estate projects and the lack of long-term funding sources, primarily in the national currency" - said AFS Chairman.

The AFS press release, disseminated at the press conference, states high level of the credit risk and decreasing quality of the credit portfolio. Given the business activities decline in the country and implemented devaluation of the national currency the portion of inactive credits in 2009 increased by 4.5 times to KZT3,519.6 bn, which makes up 36.5% from aggregated loan portfolio. At this the reserves volume on loans made up at the beginning of this year KZT3,635.3 bn or 37.7% from the credit portfolio. The coverage level on formed reserves by inactive credits as of January 1, 2010 is 1.03.

"The credit portfolio quality of Kazakhstan banks aggravated in almost all sectors of economy. At this inactive credits part fell on inactive credits of two banks, restructuring their obligations, - BTA and Alliance. Excluding these two banks other inactive credits and formed reserves emerge at the lower level, 17.9% and 19.6%, accordingly. As of January 1, 2010 loans, issued in foreign currencies made up 57.2% from the aggregated loan portfolio or KZT5,516.6 bn" – specifies the press release.