Uzbekistan intends to privatize six banks by 2025 and reform the banking system, according to the draft of President Shavkat Mirziyoyev.
The privatization plan is part of Mirziyoyev’s economic reforms aimed at boosting economic growth and attracting foreign investment to the resource-rich country of 34 million people.
With the assistance of international financial institutions, the Uzbek authorities want to gradually sell the state’s shares in Uzpromstroybank and Asaka Bank, the second and third largest Bank in the country. At the first stage, it is planned to transform the activities of banks, and at the second stage – to sell state-owned shares.
By 2025, Uzbekistan plans to attract at least three strategic foreign investors to the capital of at least three banks with a state share.
The decree also States that the Uzbek authorities want to consolidate individual banks “based on regulatory requirements, as well as the economic feasibility of their reorganization in accordance with the law on the basis of diagnostics of their activities and assessment of their financial condition.” The document does not say which specific banks are in question.
As a result of the implementation of the banking system reform strategy, by 2025, Uzbekistan expects to increase the share of banks ‘assets without the state’s share in the total assets of the banking system to 60% from the current 15%, as well as to increase the share of banks’ liabilities to the private sector in the total liabilities to 70% from 28%