In accordance with the measures approved by the National Bank and the Government of the Republic of Kazakhstan to improve the financial sustainability of Tsesnabank JSC and provide support to the agricultural sector, and in order to implement a uniform debt management policy for enterprises of the agro-industrial complex, “Fund of Problem Loans” JSC acquired from Tsesnabank JSC a portfolio of agricultural loans in the amount of 604 billion tenge.
As it is known, the share of Tsesnabank JSC’s agro-industrial sector loan portfolio accounted for 65%, which has a load in the form of foreign currency loans. Under the pressure of the rapidly changing situation in foreign markets, the financial stability of agricultural producers deteriorated. In turn, this affected the financial stability of the Bank.
As a result of the measures taken, it became possible to attract a new investor to the bank’s capital, as well as to create conditions for additional support to agricultural producers and their accelerated recovery.
As part of the agreements reached, First Heartland Securities JSC (hereinafter referred to as FHS) acquired a controlling stake in Tsesnabank JSC.
The complex of measures implemented by the National Bank and the Government as well as the involvement of a new investor to Tsesnabank JSC allowed to improve Tsesnabank JSC’s status. Currently, the bank has capitalization and liquidity indicators that exceed the minimum requirements of the National Bank, has a stable long-term funding base in tenge, ensuring repayment of funds to creditors.
The plan of financial recovery of Tsesnabank JSC is implemented on the basis of the conditionality of state support by the proportional participation of existing shareholders or by attracting new investors; creating the necessary reserve of provisions, capital and liquidity corresponding to the risk profile; and the subsequent change of the business model of the financial institution with the involvement of efficient management.
Tsesnabank JSC will continue to function as a sustainable financial institution, fulfilling its obligations to depositors, creditors and investors.
Further development strategy of Tsesnabank JSC will be determined by FHS shareholders.