Kelimbetov warns about license withdrawal from banks which do not write off problematic credits to 10% of their portfolio

Date: 10:14, 13-05-2014.

Astana. May 13. KazTAG - Second tier banks must decrease the level of problematic credits from 30% to 10% of the credit portfolio, including writing off  the credits, otherwise their licenses will be withdrawn, said Kairat Kelimbetov, chairman of the National Bank.

"30% or a third of credit portfolio of second tier banks is credits which must be written off. That is what we are working on now. In two years those banks which do not write off these credits to 10% of credit portfolio will loose their licenses," he said.

In his words the banks which will write off the credits "will get unprecedented tax privileges”.

A fund of problematic credits will work which will redeem these bad assets with discount or on another ratified scheme.

In his words, the volume of idle credits accumulated in the past years in the banking sector of Kazakhstan is more than 4.5 trln tenge.

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