business and economy

Total banking debt falls 13 percent in Q1

By SRI ⋅ July 2, 2009 ⋅  Email This Post ⋅  Print This Post ⋅ Post a comment

(SRI) - Kazakhstan’s total external debt fell 2.5 percent to $105.7 billion while the banking sector debt fell 13.1 percent to $34.1 billion in the first quarter of 2009, the National Bank of Kazakhstan reported.

Kazakhstan’s banking sector debt decreased by $5.2 billion in the first quarter. At the same time, Kazakhstan’s banks were scheduled to repay approximately $4.4 billion in the same time period. The more rapid decline is likely the result of banks being able to retire their obligations ahead of schedule or by buying up their foreign debt at a discount over-the-counter. Kazkommertsbank, Kazakhstan’s second largest bank, announced yesterday that it was able to buy back $300 million in the last two years.

The larger than expected decline of the banking debt could be a positive factor indicating a slow stabilization of the financial sector.

Tags: debt, economy

Related articles

• Banking debt down $7.3 billion in Jan-Sep
• Banking debt falls by 18 percent in first half of 2009 - National Bank