ALMATY (TCA) — Kazkommertsbank (Qazkom), the largest bank by total assets in Kazakhstan, says it is not in any negotiations with the National Bank and the Government of Kazakhstan on bailout.
Last week, Bloomberg with reference to anonymous sources commented that the Bank has been granted an emergency loan, which has been assumed as a first step of the special government-sponsored KZT 1.5 trillion rescue program being discussed between the Management of the Bank and the National Bank of Kazakhstan, Kazkommertsbank (the Bank) said in an official statement on December 26.
On December 14, 2016 the Bank applied for the loan from the National Bank in amount of KZT 400.8 billion under the standard procedures on provision of short-term liquidity to the second-tier banks. The loan has been extended at market terms and conditions for a fixed period with interest being accrued and paid, the Bank said.
The Bank used the standard facility of the National Bank, which is available for all commercial banks to support short-term liquidity, ahead of upcoming holidays in December. For the last decade the Bank has used this facility at least 10-12 times.
The loan facilities have been used to service certain clients’ payments prior to close of 2016 financial year. In addition, the Bank became fully prepared for upcoming seasonal increase in payments and transfers of the clients through the network of Qazkom branches and ATMs.
The Bank said that for the time being, it possesses a sufficient liquidity cushion to ensure the Bank’s smooth operation over the upcoming New Year holidays in rendering services to its clients.
The Bank said it is in compliance with all the regulatory requirements including capital adequacy and liquidity. To evidence the short-term nature of the raised funds the Bank has announced partial prepayment of funds in favor of the National Bank of Kazakhstan in the amount of KZT 200 billion which took place today, December 26. The remaining part is scheduled for repayment by the end of 1Q 2017.
Qazkom has encouraged its clients to trust the official releases only and follow official announcements of the Bank, as well as the National Bank of Kazakhstan and the Kazakh Government.
