OREANDA-NEWS. On April 03, 2008 Renaissance Capital analysts positively reacted on KKB release regarding the appointment of Bureau Veritas as an auditor for KUAT corporation construction projects in Astana city, reported the press-centre of KKB.

Mr. David Nangle, Renaissance Capital analyst, comments:

“According to KKB, the idea is to improve project monitoring procedures and increase control over the targeted usage of the government funds allocated, via the Kazyna fund, to supporting the construction sector. KKB also intends to open a dedicated office in Astana to control the targeted usage of individual investors’ funds put into unfinished residential real estate, and provide information on KKB's participation in the government programme.

We regard the development as moderately positive for KKB stock. We regard construction-related asset quality risk as potentially the biggest issue for the Kazakh banking sector, and KKB is one of the banks most exposed to that risk. It is therefore comforting to see the bank making an effort to manage this risk properly. The measures KKB takes should also ensure ongoing support from Kazyna funds.”