Banks should begin to finance the economy – National Bank’s head on recovering the banking sector
The five banks of Kazakhstan should return to the country’s budget more than 650 billion tenge.
The amount of money support of Eurasian Bank, ATF Bnak, Tsesna Bank, Centre Credit and Bank RBK equaled 653 billion tenge. The banks should reimburse the amount of money over 15 years, as well as fulfil a number of other obligations, it was said by head of the National Bank Daniyar Akishev at the plenary session of the Senate of the Parliament of the Republic of Kazakhstan, BNews.kz correspondent reports.
Senator Sergey Plotnikov when addressing his question to chairman of the National Bank Daniyar Akishev said that to recover the system-forming bank more than 2 trillion tenge was allocated from the country’s budget, and more than 500 billion tenge from the budget of the National Bank, and the total amount was 2 trillion 640 billion tenge. The National Bank meanwhile taking urgent measures launched the recovery program within which the support to the five banks of 653 billion tenge was provided.
“The situation in the national banking sector, unfortunately, does not stabilize. The head of state on April 18 at the meeting on the results of the activity of the National Bank clearly talked about the activity on the banks with worse results. And, he told that this year the program for recovering banks would be completed. In the past year, when clarifying the republican budget, we together had a heated discussion on the issues of providing the state support to the banking system. More than 3 trillion tenge of state funds were invested in the banking sector. In this connection, the question of the effect of 653 billion tenge invested in the banking sector as part of the program arises, as well as the efficiency of 2 trillion tenge spent within clarifying the budget of the past year,” said the deputy.
Daniyar Akished agreed with all data, and underlined that all funds spent should be returned within 15 years.
“In fact, in the past year, we implemented considerable large-scale measures to support the banking sector. All data provided are correct. According to the efficiency, the support provided as part of the support of the five socially important banks, they are Eurasian Bank, ATF Bank, Tsesna Bank, Centre Credit and RBK Bank, the amount of the support was 653 billion tnege. Shareholders of the banks are obliged within five years put half of the funds in their banks in order to cancel the large amount of money of non-performing loans, that is 1.2 trillion tenge. These are the loans the banks have issued over the last 10 years, which are bad, not maintained and do not allow the banks to finance the economy well. I would like to underline that the funds should be returned, that is the funds were not given to the banks free of charge, they should be returned within 15 years. And, they should also cancel funds and as of today 710 billion tenge are cancelled, and they should start to finance the economy,” said the head of the National Bank.
At the same time, Akishev specified that as of April 1 of the present year, these banks issued loans taking into account restructuring the borrowers for the amount of 865 billion tenge, including loans for amount of 315 billion tenge to subjects of small- and medium-sized business, to corporative business for 329 billion tenge, to individuals for 222 billion tenge.
“Talking about 2 trillion tenge, the total amount of the support was 2,640 trillion tenge, of which about 200 billion tenge was returned to the National Fund as Samruk-Kazyna paid its loans after Kazkommertsbank repaid loans before Samruk-Kazyna. On the remained amount of money, assets of Kazkommertsbank were bought, and these assets were bought by the Fund of problem loans. The further work on recovering the portfolio and in order to return the funds is already carried out by the Fund of problem loans that is under the Ministry of Finance,” said Akishev.