As reported earlier, the May 12 Presidential Decree approved the Uzbekistan’s Banking System Reforming Strategy for 2020-2025.

According to the document, the state shares in Ipoteka Bank, Uzsanoatqurilishbank, Asaka, Aloqabank, Qishloq Qurilish Bank and Turonbank will be gradually privatized with the support of international financial institutions.

These banks will have to undergo a transformation process before the state shares will be put up for sale.

It should be noted that Uzsanoatqurilishbank and Asaka Bank are the second and third largest banks in Uzbekistan in terms of capitalization, assets, loan and deposit portfolios.

The state will retain its share in the National Bank for Foreign Economic Activity (NBU), Agrobank and Microcreditbank.

The purpose is to meet the demand of the public for financial services during the reform of the banking system, the widespread introduction of a mechanism to support investment projects ("project factory") and to ensure the banks’ presence in provinces.

It is planned to reorganize Poytakht Bank and Uzagroexportbank.

By Presidential Decree, a Project Office for the Transformation and Privatization of State-Owned Banks will be established under the Ministry of Finance and shall be entitled for following:

• hire international consultants in the process of transformation and privatization of banks;
• negotiate and enter into of agreements with international financial institutions and potential foreign investors on the transformation of banks, as well as the privatization of their state-owned shares.

The project office is to be headed by First Deputy Minister of Finance Omonullo Nasriddinkhodjaev.

The Central Bank and the Ministry of Finance have been tasked to assess the state of the financial sector no later than 2024 on the basis of the International Monetary Fund and the World Bank (FSAP) program.

“The heads of ministries, departments and local authorities should be prohibited from interfering in the activities of banks, including the management of business risks related to the formation of the loan portfolio and bank assets.

The Prosecutor General's Office of the Republic of Uzbekistan should step up control over the implementation of the part of the legislation on banning to administratively interfere into banks and banking activities by government agencies, the decree concluded.