Kazakh BTA bank agrees $11.2 bln debt restructuring

ASTANA, Oct 3 (Reuters) - Kazakh bank BTA has agreed a preliminary term sheet with creditors to restructure $11.2 billion of debt, the bank said on Wednesday.

Kazakh sovereign wealth fund Samruk-Kazyna, the bank's majority shareholder, agreed to convert its deposits into equity and issue a $1.592 billion interest-bearing subordinated loan.

"We hope to complete the restructuring by year-end 2012," BTA Chief Executive Yerik Balapanov said in a statement.

(Reporting by Maria Gordeeva,; Writing by Robin Paxton; Editing by Douglas Busvine)

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