The National Bank of Kazakhstan and the Agency for Regulation and Development of the Financial Market have presented the results of the Asset Quality Review for Banks.
According to the AQR results, JSC "Nurbank" became a participant in the Program for Enhancing Financial Stability of Kazakhstan's Banking Sector.
Participation in the Program will enable the Bank to implement all regulator's recommendations, particularly in increasing capitalization, as per the presented AQR results.
Under the Program terms, JSC "Nurbank" will issue subordinated bonds amounting to 48.6 billion tenge at an interest rate of 4% per annum. The Bank is committed to redeeming these subordinated bonds within 15 years, as the main principles of the Program are the cost, urgency, and return of state funds, voluntary bank participation, and joint responsibility of their shareholders.
The shareholder of JSC "Nurbank" will provide support to the Bank in the amount of 20.9 billion tenge through infusions into the Charter capital, confirming intentions for further development and maintenance of the Bank.
Additionally, a guarantee from the Problem Loan Fund (amounting to 20.9 billion tenge) is provided to maintain the bank's capitalization at the same level. The guarantee is recognized under IFRS as an instrument that covers potential risks and is provided for a term of 5 years.
As stated by Eldar Sarsenov, Chairman of the Management Board of JSC "Nurbank": "According to the AQR results, the Bank meets the capital adequacy standards, considering the measures taken by the Bank and shareholders. Together with the participation in the Program, these measures will allow us to remain true to our conservative business management policy and continue to focus on financing priority sectors of the economy. It is important to understand that the funds allocated within the Program are repayable, which is an additional motivation for growth and development. Currently, active work is underway to improve asset quality and transform the Bank's key business processes."
Press Service of JSC "Nurbank"
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