BTA Bank had borrowed from overseas financial institutions at low interest rates a few years ago then lent these in Kazakhstan for higher rates, as was the practice among banks in the country. When the global financial crisis hit in 2008, many of its borrowers were unable to repay their loans, sending the bank into debt.

The bank said in a statement that the restructuring is expected to bring the $796 million loss recorded in the first half of 2010 to a profit of $100 million in 2011. The success of the move effectively cuts its total debt from $16.7 billion to $4.2 billion. Under the terms approved by the Special Financial Court of Almaty, creditors will also get $945 million in cash plus securities. The payback periods range from eight to 20 years.

Other Kazakhstan banks, such as Temirbank and Astana Finance, share a similar fate and are expected to complete their restructuring efforts this year.