Bad loans shipped out as Halyk Bank cleans up balance sheet

10 Oct 2012

Kazakhstan’s Halyk Savings Bank has received regulatory approval from the country’s central bank to set up a subsidiary to house its bad loans. The special purpose vehicle will manage Halyk’s “doubtful and bad assets,” the bank said in a statement.

Halyk plans to establish the subsidiary by the end of November and is looking to transfer some KT4bn ($27m) in assets into it before the end of the year, said a bank spokesperson.

The bank had exposure to KT1.18tn ($7.9bn) of loans as of December 31, 2011 — accounting ...

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