Halyk Finance - Banks in July - September 2, 2011

In 2010 the NBK decided to align the statutory treatment of bad loans with the IFRS standards. In July, the banks made adjustments to their books to comply with the new requirements. Adjustments had to be made to all accounts that reflected the changes in the value of the on–balance loans, including Loans to customers and Allowance for impairment in assets, the newly introduced Reserve and provision adjustment account in the equity section, and Provisioning and Recoveries of provisions in income statement. The adjustments had significant impact on several banks.