business and economy

BTA’s trade finance deals to be restructured with other debt

(SRI) - BTA Bank plans to restructure its $3.7 billion trade finance debt along with other liabilities as part of its restructuring, reversing its earlier position, the bank’s CEO Anvar Saidenov said on Monday.

“We have $3.7 billion in trade finance liabilities,” Saidenov told reporters. “They must become part of the overall restructuring.”

Saidenov said in a May conference call with investors that the bank intended to meet its obligations under what it described as “true trade finance” deals as scheduled. On Monday, however, Saidenov said no debts would avoid restructuring.

“It would be impossible for us to stop paying everyone else and restructure our debts to them while repaying the trade finance debt according to the old schedule,” he said.

BTA is reportedly still devising its final debt restructuring plan which is due to be presented to creditors by the end of July 2009.

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One comment for “BTA’s trade finance deals to be restructured with other debt”

  1. The assumption by BTA (and Khazakstan’s officialdom generally) that it can blithely advise the capital markets of a position and then simply volte face is one that will be tested in international Courts - see kzbonds.com. Absent support from the State one should not assume there will be much left of the Kazakh financial system. Perhaps it is for the better, since the Kazakh authorities have demonstrated a profound inability to regulate financial institutions, another matter that will inevitably come before the Courts.

    Posted by Scott Tyne | June 28, 2009, 6:02 am

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