UPDATE 2-Kazakh bank bond repayment soothes nerves

* Will repay $470 mln Eurobond due Nov 3

* Some investors had feared default/restructuring

* BTA trade finance woes affect other lenders (Recasts with analyst comment, details)

By Olga Orininskaya

ALMATY, Nov 2 (Reuters) - Kazakhstan's largest bank Kazkommertsbank (KKGByq.L) quashed fears of default on Monday saying it would repay this week its largest liability maturing before the end of this year.

"We will repay about $470 million," the bank's managing director Beibit Apsenbetov told reporters.

Some analysts have feared more Kazakh banks could follow the example of BTA BTAS.KZ and Alliance (ALLBq.L), two large local lenders that defaulted on their bonds this year and sought to restructure their debts.

"The market... should react positively, since not everyone has been on board believing or understanding the situation fully, and fear of KKB going for restructuring has remained in some corners," said Milena Ivanova-Venturini, an analyst at Renaissance Capital.

Kazakh banks have been hit hard by the global crisis after years of rapid growth fuelled by foreign borrowing. Both BTA and Alliance have cited mounting bad loans, along with management fraud, as reasons for restructuring.

A decision by BTA to restructure trade finance debt has also hit confidence in other banks, including Kazkommertsbank, as trade finance agencies stopped lending to them, Apsenbetov said.

"(They are) probably trying to put pressure on the government so that trade finance is excluded from restructuring programmes," he said. (Reporting by Olga Orininskaya; writing by Olzhas Auyezov; Editing by Andrew Callus)