State program for banking sector rehabilitation to be terminated, shareholders will have to invest their owned funds- Nazarbayev

Astana. April 19. KazTAG - President of Kazakhstan Nursultan Nazarbayev has listened to the annual report of the National Bank for 2017 and indicated state support of the banking sector and control over activity of the financial institutions by the regulator, Akorda reports.
"The Government provided unprecedented support to the banking system allocating 3 trln tenge. At the same time the volume of credits provided by the banks did not increase and made 12.7 trln tenge by the end of 2017. The share of non performing loans made 10%,” he said.
"This year the program of the National Bank for banks rehabilitation will be terminated for the banks which have bad indexes. These banks have negative indexes as their shareholders work ineffectively, they increased the debt burden and cannot perform the liabilities. What can be the resolution to this situation? The shareholders must invest their owned funds to save the banks," he said.
"We still face the problem of long-term economy crediting. We must revive the stock market, we must timely respond to the situation in the baking system. Following adoption of the amendments in the law on currency regulation, we must start working on the program 7-20-25 this year," he said.

Photo source: picture from an open source


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