The Ministry of Economy and Finance has unveiled the Uzbekistan’s Fiscal Strategy 2028. It has extended the timelines of privatization of the four largest state-owned banks of Uzbekistan - Uzsanoatqurilishbank, Asakabank, Aloqabank and Turonbank.
The privatization of Uzsanoatqurilishbank is now scheduled for 2025-2026, and the privatization of the other three banks - for 2026-2027.
Privatization will be carried out in two phases. The phase I involves institutional transformation of banks (transformation of their activities), and the second phase involves the sale of a package of government-owned stakes.
In order to meet the market's demand for financial services during the reform of the banking system, to implement a mechanism for supporting investment projects, and to improve services in provinces, it is now deemed expedient to hold the government stakes in the National Bank for Foreign Economic Activities, Agrobank, Khalq Bank, Microcreditbank, and Business Development Bank JSC, the document stressed.
Earlier, it was reported that the government stake in Uzsanoatqurilishbank, the second largest bank in the country, had been put up for sale. After that, it was decided to reduce the government stake in the bank by 50 percent through privatization by the end of 2024, but this did not happen.
Earlier, it was reported that the privatization timeline for Asakabank had been extended from the end of 2023 to the end of 2025. Asakabank is currently owned by the Uzbekistan Fund for Reconstruction and Development (88.22%), the Ministry of Economy and Finance (10.85%), the Bukhara Oil Refinery (0.73%), Uzavtosanoat (0.1%), Uzagrosugurta (0.08%) and Uzbekinvest (0.02%).
It was planned to conduct an IPO for Aloqabank on the stock exchange by January 1, 2025 (previously by July 1, 2023). The equity in this bank is owned by: Uzbekistan Fund for Reconstruction and Development - 61.8%, Uzbektelecom - 22.03%, Fund for the Development of Information and Communication Technologies - 6.3%, Ministry of Economy and Finance - 4.32%, Electromagnetic Adaptation Center DUK - 2.11%, others - 3.44%.
The January presidential decree envisages the sale of the above 3 banks by the end of 2025.
