Devaluation of Tenge in Kazakhstan’s Economy

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      Internship

KazInvest Bank.

Devaluation of Tenge in Kazakhstan’s economy

Dinara Aitkassimova

ID 20120222

Professor Keun Jung Lee

Passing practice in the bank I have learned a lot of new things connected with finance side and collected interesting facts about KazInvestBank.

KazInvestBank, already KazInterBank, was built up in 1993 as a venture bank, giving managing an account administration associated with conveying speculation to Kazakhstan and helping with the privatization of state shares in Kazakhstan blue chip organizations.

The bank started business keeping money operations in April 2004, and since that time it has gotten to be one of the speediest creating business banks in Kazakhstan, with resources expanding from USD 8 million to USD 170 million (as of September 1, 2006) . Shareholder value developed from USD 7 million to USD 24 million (as of September 1, 2006).

KazInvestBank has a lot of branches; number exceeds 100, over the country. In every branch of the bank there is a good service for clients. This bank has a minimum percent of negative feedback. The main advantage is good service for the comfort and convenience of customers Number of employees of the Bank consists of 275 people.

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Due to the vast experience of the management team, the bank's work is distinguished by flexibility, mobility, speed decision-making and an individual approach to each client. The main priorities are the exceptionally high standards of corporate governance, transparency and professionalism. Today Kazinvestbank - this is one of the most dynamic and promising commercial banks of Kazakhstan. Through the effective use of international experience and innovative technologies, in a relatively short period of time they will surely come to the country's financial market and continue to grow rapidly.

           They are confident that their goal - to create a unique model of a Kazakh bank, through the effective use of best practices and achievements of local and foreign financial institutions,                                                                                              

will allow them and their customers with confidence in the future, relying on real business achievements, which, no doubt, will be contribute to the success of the business world. They will continue to act in the interests of their customers.

        Searching for interesting facts about KazInvestBank by survey and looking for some chronological sequence I can come to a certain pattern. According to official site of KazInvestBank (www.kib.kz), there is a history of founded and developing of the bank:

• 1993. Foundation of Kazakhstan International manage an account with half enthusiasm of the Government of the Republic of Kazakhstan and half enthusiasm of Chase Manhattan Bank, NY. KazInterBank turns into the principal venture bank in both the Republic of Kazakhstan and Central Asia.
• 1995. An offer of Chase Manhattan Bank is procured by the Government of Kazakhstan because of changes in managing account regulations. The Bank gets to be private after privatization process.
• 1995-2003.  The bank gives principally speculation managing an account administrations, pulling in ventures to Kazakhstan, and helping with privatization of state shareholdings in Kazakh organizations.

• 1998. KIB went about as guide to finish a merger of two noteworthy geophysical organizations, International Energy Services Inc. (USA) and Azimuth (Kazakhstan) with a joined resource estimation of USD 40 million.
• 2003. KIB is procured by new shareholders. New methodology is set to add to a general business bank rendering a full scope of administrations to corporate customers all through Kazakhstan.
• Walk 2004. The bank joins the Kazakhstan Individual Deposit Guarantee (protection) System                                                                                    
• April 2004. KazInvestBank acquired a managing an account permit for fundamental keeping money administrations and opens its first working office in Almaty.
• June 2004. KIB together with Credit Suisse First Boston International orchestrated USD 105 million pre-send out offices for JSC Food Contract Corporation. This was the biggest arrangement in the farming financing circle in Kazakhstan.
• December 2004. Adnan Ally Agha who has 16-year involvement in Citigroup is selected Chief Executive Officer. New administration joined from Citigroup, ABN AMRO Bank, AIG, and ING.
• February 2005. KazInvestBank normal shares passed "A" posting prerequisite on KASE.
• July–August 2005. Oleg Kononenko having 14-year experience joined KazInvestBank as an individual from the Board of Directors. His Temirbank group extended business operations in branches and retail business advancement, SME financing.
• September 2005. KazInvestBank got a permit for complete scope of saving money administrations, including issuance of cards and issuance/affirmation of letters of credit.
• December 2005. KIB subordinated bonds passed posting method on KASE under "A" class

• February 2006. KIB went about as an arranger and a membership specialists for the principal issue of worldwide securities on the nearby market (JP Morgan Chase Bank put 10-year securities on the Kazakhstani market in the measure of KZT 13,2 billion)
• June 2006. The consummation of the union venture of KIB's operational framework in branches which permits to present same administrations to clients in all branches and backups.
• December 2006. Dec. 4, 2006 - Standard and Poor's Ratings Services said today that it appointed its 'B/B' long-and fleeting counterparty FICO assessments to Kazakhstan-based

 KazInvestBank (KIB). In the meantime, it alloted its "kzBB+" Kazakhstan national scale rating to the bank. The standpoint is steady.

• February 2006. EBRD affirmed US$10 million line under exchange assistance program. It will add to the advancement of exchange money items and reinforce the position of IRB in the global business sector.
• June 2006. The consummation of the combination venture of KIB's operational framework in branches which permits to present same administrations to clients in all branches and backups.
• December 2006. Dec. 4, 2006 - Standard and Poor's Ratings Services doled out its 'B/B' long-and transient counterparty FICO scores to Kazakhstan-based KazInvestBank (KIB). In the meantime, it doled out its "kzBB+" Kazakhstan national scale rating to the bank.
• February 2007. EBRD endorsed US$10 million line under exchange assistance program. It will add to the advancement of exchange money items and fortify the position of IRB in the global business sector.
• June 2007. EBRD (European Bank for Reconstruction and Development) and CVCI (City Venture Capital International) mutually gain 40% value in KazInvestBank Bank.

• July 2007. EBRD build exchange office to US$30 million. The improvement will be utilized to extend exchange offices for KIB client.
• August 2007. EBRD copies credit line to US$60 million.
• September 2007. KazInvestBank chooses to begin retail managing an account in Kazakhstan and begin constructing a retail group.
• September 2008. JSC "KazInvestBank" opens another branch in Almaty city situated at 154 A, Nauryzbay Batyra road.
• June 2008. Phone keeping money with IVR framework was dispatched. Contracts/Secured credit for clients was presented.
• April 2008. Personal Loan program alongside re-account highlight was presented. To start with advance was reserved in April.
• Walk 2008. Retail Business programming was propelled. Need Banking for VIP clients was dispatched. Platinum cards finance item was propelled as a stand alone Retail business suggestion.
• January 2008. JSC "KazInvestBank" has finished the phase of framing a retail administration group and riggings up toward beginning retail item's deals and advancement.
• 2009. National Holding (PC) KazAgro "in the agrarian credit program subjects acknowledged offers adding up to 84.7 billion tenge. Today Chairman of the JSC "TH" KazAgro "Asylzhan Mamytbekov in the meeting of the State Commission to modernize the economy, under the chairmanship of Prime Minister of Kazakhstan Karim Masimov, educated with reference to squeeze administration, Prime Minister of Kazakhstan.

By head "KazAgro, to date, JSC" TH "KazAgro" acknowledged offers adding up to 84.7 billion tenge. Of these affirmed undertakings to 54.7 billion tenge. The genuine sum supported under the system of undertakings was more than 19.4 billion tenge.