Kazakhstan, Georgia hold difficult talks

Business Materials 30 August 2010 14:15 (UTC +04:00)

Azerbaijan, Baku, August 30 / Trend S. Suleymanov /

Kazakhstan is holding "difficult negotiations" with Georgia concerning the BTA Bank (Georgia), head of the SamrukKazyna National Welfare Fund Kairat Kelimbetov told Trend today.

"We are holding difficult negotiations on the bank's future activities and model," he said. He noted that there are several "big problems" with Tbilgazi, which operates under the fund.

"We have lost all of our assets in BankTuranbank's investments in the CIS," Kelimbetov added.

Silk Road purchased the controlling stake in BTA Bank in May 2010.

The group then increased its share in the bank's authorized capital from 24 to 51 percent by buying the shares of ZRL Beteiligungs AG (18 percent) and Interfunding Facilifies Limited (9 percent).

However, the Kazakh BTA Bank, which owns 49 percent shares of the Georgian bank, say that they doubt the legitimacy of the transactions.

It should be noted that BTA Bank bought 49 percent of the Silk Road Bank for $2.5 million in March 2005 and changed its name to BTA Bank (Georgia).