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Wednesday, July 26, 2017

BTA orders redemption of common shares

BTA Bank ordered redemption of common shares at the request of shareholders on Tuesday.

The decision comes after plans by Kazkommertsbank (KKB) to acquire BTA were approved by BTA general shareholders n December. The shareholders also approved a plan to withdraw BTA's banking license once liabilities and assets were successfully transferred to KKB.

A Reuters report said KKB and businessman Kenes Rakishev purchased BTA for approximately $1 billion. BTA's debts that were a result of the financial crisis would be transferred over to KKB. Non-performing loans made up 87 percent of the total of BTA's lending portfolio as of the beginning of 2014. Prior to the acquisition, KKB was Kazakhstan's largest lending body.