The Cabinet of Ministers of Uzbekistan issued the Measures for privatization and transformation Uzsanoatqurilishbank with the participation of the International Financial Corporation Resolution.
In order to transform the bank on the basis of best world experience, a US$ 75 million credit line of the International Finance Corporation (IFC) will be opened with the possibility of converting all or part of the loan into additional ordinary shares of the bank.
The Ministry of Finance, together with Uzsanoatqurilishbank, will present a roadmap for the bank's privatization before 2024 within two months.
To ensure the independence of the bank in the process of preparing for privatization by the end of December 2021, the following measures will be taken:
- formation of a new composition of the bank's supervisory board by attracting five independent members with international banking practice;
- development and introduction of regulating transactions with organizations that have a state’s share;
- banning drawing the bank’s funds as an investment in the authorized capital of commercial organizations in areas not related to banking, etc.
It was recommended that the Bank’s Supervisory Board and the Board shall expedite the implementation of the tasks assigned to the mechanism for motivating employees of the head office and branch network, including the introduction of a KPI system based on the degree of customer loyalty and competence; sell non-bank non-core assets acquired as a result of the bank's investment activities; take effective measures to reduce the share of foreign currency loans.
