Investment bank Goldman Sachs has stepped down as an adviser to ailing BTA bank as the restructuring of Kazakhstan's banking system staggers on.
A spokeswoman for BTA in Almaty told EmergingMarkets.me that Goldman Sachs would not be replaced for now and the Swiss bank UBS would carry on as the sole financial adviser.
BTA declined to say why Goldman's had stepped while the US bank typically declines to comment on client matters.
Analysts at Raiffeisen said the news was detrimental to the already shattered confidence in the Kazakh banking system. In a note, the Austrian bank, said: "We take the view that the procrastinated restructuring process may take even longer. Likewise, we doubt that the previously announced August deadline for the restructuring plan's agreement will be maintained and we would rather suggest it will be postponed to the autumn months."
BTA hired Goldman and UBS as restructuring consultants after the government took control of the bank in February. BTA stopped making principal payments after some creditors demanded accelerated payment, which triggered a default.
So far, BTA has not released the restructuring terms of its $15bn in debt but according to Anvar Saidenov, the bank's chief executive, creditors could be offered a variety of options, including a potential cash component or extension of maturity.
Loading ...
