As previously announced Kazakhstan will inject capital into four of its largest private banking institutions, Alliance Bank, BTA Bank, Halyk Bank and Kazkommertsbank. It has been reported that the bail out package will provide approximately $3.4 billion in aid.

National Welfare Fund SamrukKazyna “acting on behalf of the government will have a 25% stake in the equity capital of Halyk Bank Kazakhstan JSC and Kazkommertsbank JSC through an additional issue of ordinary shares.” The National Welfare Fund, however, “will not interfere with the operating activities of banks and it will not play an active role in their day-to-day management.” President Nursultan Nazarbayev, acknowledged that the government’s actions will “give more confidence to depositors and citizens, as well as to show that the state will extend its functions to regulate the country’s banking sector following the global financial crisis.”

Erik Sultankulov, Chairman of the Board of Alliance Bank, also commented that he was confident that, “state participation will strengthen trust to Kazakhstan banking system, support real sector of economy and provide lending to companies and population.”