Uzbek authorities has refocused its bank privatisation agenda around Sanoat Qurilish Bank (SQB, BB/Stable), a more selective approach that could become a template for other state lenders but is unlikely to produce large-scale sales soon, Fitch Ratings said.
Fitch said that Uzbek authorities were prioritising SQB’s pre-sale preparation under the Uzbekistan National Investment Fund (UzNIF), with a September presidential decree ordering the transfer of a 30% SQB stake from the Uzbekistan Fund for Reconstruction and Development to the Ministry of Economy and Finance and then to UzNIF. Amendments also remove the previous before-2026 deadline to sell control in SQB. The government’s July fiscal strategy now envisages privatising SQB, Asakabank (BB/Stable), Aloqabank (BB/Stable) and Turonbank in 2026 or later.
The shift comes as state banks continue moving from directed policy lending toward commercial franchises, improving profitability, governance and risk management—changes that could draw foreign investors. Minority stakes by international financial institutions may also support sale prospects, Fitch said.
SQB’s USD300 mln AT1 issue in October, the country’s first, has strengthened capital, which the bank expects to lift regulatory ratios by about 300bp, enable roughly USD2.1 bn in additional lending during 2026–2027 and add about USD80 mln in net interest income. Fitch sees a sale of SQB’s controlling stake most likely after UzNIF’s planned IPO in 2026, with successful execution setting precedent for peers.
Near-term privatisation of Asakabank and Aloqabank looks less likely: Asakabank faces legacy low-yield loans and capital constraints, while Aloqabank has been assigned a new policy role anchoring subsidised lending to young entrepreneurs. Government Support Ratings of ‘bb’ for SQB, Asakabank and Aloqabank continue to reflect potential extraordinary support while they remain state-owned, Fitch said.
