The Problem Loans Fund was the key state agent in the “Save Kazkom” operation executed by Akorda. This very organization had bought BTA Bank assets for 2.4 trillion tenge. Later, it transferred the money to Kazkom thus repaying the loan to the bank.
Unfortunately, apart from the press-release dated July 5, 2017, you will not find any information on this largest transaction in the history of independent Kazakhstan on the Problem Loan Funds website. Even the press-release boggles the imagination with its brevity. Here is a quote: “The Problem Loans Funds informs that, in accordance with the Kazakhstan law on the banking system, the shareholder has decided to complete the transaction on purchasing the BTA Bank assets”.
Since no information is available as to what assets had been bought from BTA Bank, we cannot adequately estimate the economic side of this “historic” deal. But, most likely, the buyer had purchased an “empty shell” meaning that the real market value of these assets could hardly exceed 5-10% of the nominal value.
Now, since the Problem Loans Fund has become the legal owner of the BTA Bank assets and, consequently, can act as a plaintiff in the Kazakhstan as well as the foreign courts, has the right to sell the assets and invest in them, we have a chance to learn more, sooner or later.
But, even today, we can suppose that the Problem Loans Fund had seriously violated the regulatory document that should have served as the guide for its conduct. We are talking about the National Bank of Kazakhstan’s directive dated September 24, 2014. Unfortunately, there is nothing on the Problem Loans Fund website regarding the current financial situation in the company. Moreover, only the annual accounting statements for 2012 and 2013 and the auditing statements for 2012 – 2015 are available for the public. It means that the government, namely the State Property and Privatization Committee of the Ministry of Finance of Kazakhstan who is the sole owner of the Problem Loans Funds and the National Bank of Kazakhstan who observes and controls the fund, does not consider it possible to inform the Kazakhstan people on the matter.
Altogether, this leads us to believe that, under no circumstances, will the Problem Loans Fund be able to pay back the 2.4 trillion tenge it received from the state budget, the Kazakhstan National Fund, and the National Bank of Kazakhstan for Kazkom salvation. Therefore, the organization is, de-facto, bankrupt.
This is exactly what, quite possibly, has forced the NBK to create an affiliated company, Kazakhstan Stabilization Fund, for the realization of the “Increasing the Financial Stability” program.