(Corrects Samruk-Kazyna's stake in Alliance in para 4 to 51
pct, not 67 pct)
LONDON May 29 Talks with creditors of
Kazakhstan's wealth fund-controlled Alliance Bank have broken
down without agreement, the bank's chief executive said on
"Negotiations have broken down, no agreement was reached,"
Timur Isatayev told Reuters by telephone.
The bank met a creditor committee over the past two days and
offered improved terms compared with an initial debt
restructuring offer made in January, Isatayev said.
Alliance is 51 percent owned by local sovereign wealth fund
Samruk-Kazyna, which has reduced its stake in recent weeks.
The banking sector of the oil-producing Central Asian nation
of 17 million was among the first and hardest hit by the global
crisis owing to its overexposure to external borrowing and the
bloated real estate market.
(Reporting by Carolyn Cohn; editing by Sujata Rao)