Kazakhstan, Astana, Sept. 26 /Trend D.Mukhtarov/
JSC National Management Holding Baiterek reached final stage in the deal for transfer of 'problem loans' from the Development Bank of Kazakhstan to Investment Fund of Kazakhstan for a total amount of 151.071 billion tenges (one dollar is equal to 153.45 tenge), the press service of JSC NMH Baiterek reported on Thursday.
"This transaction will allow the Development Bank of Kazakhstan to clear the balance and focus its efforts on main business that is, financing of projects aimed at further development of non-primary sector of country's economy" the company's report said.
Development Bank of Kazakhstan (DBK) is a national development institution the main purpose of which is to finance projects in priority sectors of the economy, including infrastructure projects and the projects having social significance, which are characterized by low profitability and long payback period.
A distinctive feature of Development Bank's projects is a high level of risks, which banks of the second level are not are often not ready to bear.
At the same time, it should be noted that the 'non-performing' loans of the Development Bank of Kazakhstan did not exceed 28.6 percent of the total loan portfolio before the deal. For comparison, according to the Committee for the Control and Supervision of Financial Market and Financial Organizations, in early 2013 the share of 'toxic' loans in BTA Bank was 84.9 percent, in ATF Bank - 36.2 percent, Allianz Bank - 34 percent.
The presence of 'non-performing' or 'problem loans' in the loan portfolio of banks is normal and integral part of banking activities in Kazakhstan and in other countries.
"The work on recovery and restructuring of loans takes a lot of resources from the DBK, not allowing to fully engage in the realization of its main tasks. Therefore, we decided to transfer the 'problem loans' to the Investment Fund, which has accumulated vast experience in the work with stressful assets. Per se, this deal is one of the first steps of Baiterek to restore order in the institutions of development, where everyone has to do their job. At the moment we are building the necessary conditions for synergy in the work of our subsidiaries,"- the Managing Director, Member of the Managing Board of the Baiterek Holding Askar Dostiyarov said.