Kazakhstan will not provide state guarantees to facilitate bank debt restructuring, the head of the country's banking watchdog said on Tuesday, Reuters reported.
"I want to say that state guarantees will not be used under any circumstances, not in the case of Alliance bank, not in any other case," Yelena Bakhmutova told a financial conference.
Kazakhstan's No.4 bank Alliance (ALLBq.L) defaulted on a loan last month and is drafting a restructuring proposal, while No.1 bank BTA BTAS.KZ is also considering restructuring its debt.
"All proposals can be used: buying back at a discount, exchanging debt," Bakhmutova said.
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