BTA Bank will establish a subsidiary to manage its non-performing assets23.11.2012
Almaty, November 23, 2012 – the Board of Directors of BTA Bank JSC (the Bank) decided to establish a subsidiary to acquire doubtful and bad assets held in the Bank’s loan portfolio (the Subsidiary).
Decision to establish such a subsidiary was taken in order to enhance efficiency of the Bank’s work with non-performing assets located both in foreign jurisdictions and Kazakhstan and related to illegal activities of the Bank’s former management on asset misappropriations.
As it is known, ex-Chairman of the Board of Directors M.Ablyazov and his associates are being prosecuted by the law enforcement agencies of Kazakhstan, Russia and other countries for large-scale misappropriation of the Bank’s and some of its subsidiaries’ funds by issuing knowingly irrecoverable loans to their affiliates. Legal proceedings initiated by the Bank against Ablyazov and his associates in 2009 are being considered in the High Court of England.
It is envisaged that actual transfer of non-performing assets to the Subsidiary will take place immediately after the Bank’s restructuring is completed, relevant authorization from the National Bank is received and all legal proceedings related to registration thereof are completed.