The case of Kazkom, a private financial organization recently purchased by Halyk Bank, shows clearly how Nazarbayev’s words differ from the actions of Kazakh officials.
Note that, on August 23, 2017, in Almaty, Halyk’s chair Umut Shayakhmetova held a press-conference on the consolidated financial results of her banking group. (See articles How Umut Shayakhmetova Drowned National Bank and Why did They Save Kazkom).
As it was stated at the press-conference, Akorda, saving Kazkommertsbank from the inevitable bankruptcy, had given a significant support to its buyer. It is particularly evident from the fact that the financial organization whose liquidity amounted to about 1.6 trillion tenge after completing the deal with BTA Bank was purchased for 2 tenge.
And this is not all. With the help of the government and the National Bank, Akorda has provided Halyk Bank with a source of a large, constant, and low-risk income.
The following quote is taken form a Forbes-Kazakhstan publication.
“BTA Bank paid the debt to Kazkom in the amount of 2.4 trillion tenge. The rest of the debt amounting to 64.8 bln tenge Kazkom wrote off as provisions. The money received from BTA Bank was accolated for:
-paying off the debt to the National Bank of Kazakhstan – 625 bln tenge,
-purchasing the bonds issued by the Ministry of Finance – 1 trillion tenge,
-settling the REPO operations account debts – 202 bln tenge”.
Now, the 1 trillion tenge Kazkom has invested in the government bonds will guarantee it about 90-100 bln tenge per year. Only the Ministry of Finance can name a more precise figure. However, at the auction held on August 9, the 5 year MEOKAM – 60 bonds issued by the ministry were sold with the 9.2% maturity rate; at the auction held on August 14, the 4 year MEOKAM – 48 bonds were sold with 8.99% maturity rate.
At that, Kazkom will not pay interest expenses since the money is its own, not borrowed from the depositors. Therefore, the Halyk Bank group, through this channel only, has secured an annual income comparable to that received before the Kazkom purchase.
Keeping in mind that, in 2017, the Ministry of Finance is planning to sell the bonds in the amount of 653 bln tenge (77 bln in May, and 29 bln in July of the current year), it is clear that the deal with Kazkommertsbank was of a special, exclusive, and non-market nature.
Evaluating the results of the “Save Kazkom” operation, we sing praises to its organizers. (The operation was completed with the help of the 2.4 trillion state money infused into Kazkom via BTA Bank with the following sale of Kazkom to Halyk Bank for only 2 tenge).
As a result, a supra-systemic bank has been formed in the country. It is a private bank that is guaranteed the state support, security, and aid under any circumstances. Even if Nursultran Nazarbayev is replaced as the head of the state, this will still hold true due to the bank’s size and its place on the market.
Halyk Bank Chairperson said at the Almaty press-conference: “The only ones who lost are the Kazkom shareholders. They invested about 500 bln tenge in the bank’s capital. So why not ask Ms. Shayakhmetova how much have the Halyk Bank’s shareholders gained? And with whose money?
