Monday, November 03, 2008
ALMATY, Kazakhstan —
The government of Kazakhstan says it will buy up assets from distressed banks in an effort to galvanize the Central Asian nation's lending sector.Prime Minister Karim Masimov says relieving banks of bad loans will help them free up liquidity and inject it into the economy.
Masimov said Monday the government will buy up bad assets at a discount on their market value. The government says it will create a $430 million fund to buy the bank assets.
Oil-rich Kazakhstan has seen foreign capital inflows drying up with the global credit crunch.
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