Kazakh Nat Bank comments on solutions to get back Pension Fund’s money

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ALMATY. KAZINFORM A representative of the National Bank has commented on the alternate solutions proposed to return the Unified Pension Fund's assets, Kazinform correspondent reports.

"The most unappealing option is the third one with bonds of the International Bank of Azerbaijan exchanged at par for a 7-year 3.5 percent issue. The other two options, swapping the USD250MM debt into USD200MM Azerbaijani sovereign bonds with a 12-year maturity at 5.125 percent rate or a one-on-one swapping into 15-year 3.5 percent sovereign bonds are also lossmaking. Nonetheless, we have made no decision so far as we are thoroughly calculating the risks", Director of the National Bank Monetary Operations Aliya Moldabekova said.


The National Bank does not give names of the people who had decided on the risk investment in the IBA in 2014.

"Members of the Investment Council are the chiefs of the National Bank subdivisions. At that moment, the investment met the criteria of that time. As we know, the decision to invest USD250MM in the IBA was supported by the members as the Azerbaijani Finance Ministry owned 50 percent of the bank. However, at that moment nobody paid attention to the fact that it was a private placement. Thus, we have become the only holders of these bonds. They were structured via the offshore company. No need to be scared, it's a commercial practice. The problem is that our participating interest is too big. Nowadays, similar things are no possible as the current investment limit does not allow one entity to hold more than 25 percent of bonds", Aliya Moldabekova says.

Recall that today Chief of the National Bank Daniyar Akishev told explained the situation with the investment of the Unified Pension Fund reserves in Azerbaijani bank.

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