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Tsesnabank boosts liquidity with 150B tenge loan from Kazakh regulator

Tsesnabank JSC said it has received a 150 billion Kazakh tenge short-term loan from the Kazakh central bank in August to bolster its liquidity but already repaid part of the funding.

The lender paid back 100 billion tenge to the central bank using its own funds. The remaining part of the short-term loan, including interest, will be repaid in the near future, Tsesnabank noted, adding that it has a sufficient amount of liquid assets, operates in the stable mode and meets all regulatory requirements.

Tsesnabank, which is Kazakhstan's second largest lender, and Eurasian Bank JSC posted sharp drops in liquid assets in the second quarter, although the central bank said that they were meeting regulatory requirements, Reuters reported Aug. 29.

Tsesnabank's liquid assets shrank by 30.3% in the second quarter, while those of Eurasian Bank dropped by 26.3% during the same period, the newswire noted, citing Fitch's calculations based on the lenders' official data. Both lenders said the reductions in liquidity were mostly planned, while also attributing part of the liquidity outflow to seasonal factors.

The central bank said both Tsesnabank and Eurasian Bank received financial assistance in 2017 under Kazakhstan's support program for the local banking sector. They also have contingency plans to deal with potential unforeseen pressures on liquidity, Reuters cited the Kazakh regulator as saying.

Eurasian Bank, which is Kazakhstan's eight largest bank by assets, is owned by businessmen Alexander Machkevich, Alijan Ibragimov and Patokh Chodiev, who also operate in the mining and metals sector. Tsesnabank, on the other hand, is controlled by the family of Adilbek Zhaksybekov, who serves as Kazakh President Nursultan Nazarbayev's chief of staff.

As of Sept. 6, US$1 was equivalent to 371.10 Kazakh tenge.