To read this content please select one of the options below:

Kazakh government will spend on bad debt to save bank

Tuesday, April 11, 2017


The measures are part of efforts to prepare Kazkommertsbank for a takeover by Halyk Bank, the second-largest financial institution, which signed a non-binding memorandum on March 2 on acquiring a majority stake in it. To make the salvage operation easier, the state is to take over 2.4 trillion tenge (7.5 billion dollars) of bad debt from Kazkommertsbank.


  • If the merger terms change and Halyk Bank has to assume more of Kazkommertsbank's liabilities, its own financial stability will suffer.
  • The additional budget money for the state's Problem Loans Fund assumes average oil prices of 50 dollars per barrel.
  • The prevalence of well-connected oligarchs and other vested interests among shareholders will curb investor interest in Kazakh banks.
  • Russian banks such Sberbank, VTB and Alfa Bank are likely to avoid purchases in Kazakhstan until their own country's situation improves.

Related articles

Expert Briefings logo
Stay up to date
Sign up to the Expert Daily Briefings email alert and receive up-to-the-minute analysis of global events as they happen.
*If your university does not have access to Expert Briefings, visit our information page to find out more.