05 September 2002
05 September 2002
Kazkommertsbank acquires a bank in Kyrgyzstan
Kazkommertsbank has obtained an approval of the National Bank of Kyrgyz Republic
on acquisition of JSC 'Kyrgyzavtobank' shares equal to 74,37% of its authorized
capital. Thereby, Kazakhstan's largest private bank Kazkommertsbank will become
the major shareholder of Kyrgyzavtobank with a controlling stake for a total of
74,4 million soms ($1.6 million).
'The necessity to expand the activity of Kazkommertsbank outside of Kazakhstan
is in line with our strategy in finding new efficient investments. We see
favourable opportunities for investment in Kyrgyz Republic, given the existing
integration links between our countries,' said Kazkommertsbank Managing Director
Kazkommertsbank is ready to invest up to $50 million in Kyrgyz economy, in case
there are any effective projects to finance. Together with the European Bank for
Reconstruction and Development (EBRD) KKB is also planning to realize joint
programme on small and medium-sized businesses support. It is possible that the
reputable international financial institution will participate in additional
capitalization of Kyrgyzavtobank.
Among strategic lines of Kazkommertsbank activity in Kyrgyzstan - transition to
international business standards, implementation of advanced banking
technologies on local market, introduction of new products and services to
population. Primarily, it applies to raising of deposits, issue of international
payment cards and creation of infrastructure for their application.
According to Mr. Apsenbetov, entry of the large foreign bank to the country will
support the National Bank of Kyrgyz Republic to consolidate a banking sector and
create competitive environment. 'We positively assess the level of commercial
banks activity regulation by the National Bank of Kyrgyz Republic. However,
overall shortage of capitalization in banking sector, lack of confidence on the
side of population constrain development process. Our goal is to promote
improvement of the market situation through introduction of our technologies and
new banking products', he added.
Kyrgyzavtobank Joint-Stock Company is among four largest Kyrgyz banks in terms
of authorized capital. It was founded in 1989 by leading transport organizations
of the republic, namely, the Ministry of Transport and Communications, National
Airline Company 'Kyrgyzstan Aba Zholdoru', Kyrgyz Railways, AO 'Kyrgyztelecom'.
These organizations remain the main clients of the bank.
Meeting the requirement of the National bank of Kyrgyz Republic, Kyrgyzavtobank
has increased authorized capital up to 100 million soms through an additional
share issue at the beginning of this year.
Currently, Kyrgyzavtobank has six branches in the republic - in Bishkek, Osh,
Kara-Balta, Zhalal-Abad, Tokmok (Chu Oblast) and Balykchy (Issyk-Kul Oblast).
This information is provided by RNS
The company news service from the London Stock Exchange