Uzbekistan has once again extended the deadlines for the privatization of three state-owned banks.

Uzbekistan, Tashkent – According to AN Podrobno.uz, the sale of government stakes in "Asakabank," "Uzpromstroybank," and "Alokabank" has been postponed to 2025. The privatization timelines have been extended by a decree from the President of Uzbekistan dated December 27, 2024.

https://podrobno.uz/cat/economic/v-uzbekistane-snova-prodlili-sroki-privatizatsii-trekh-gosbankov/2025-01-07 12:25:13

It is clarified that the document makes amendments to the presidential decree regarding the strategy for reforming the banking system for the years 2020–2025.

Initially, it was planned to sell the state share in "Uzpromstroybank" by the end of 2022. Later, it was decided to reduce the government's stake to less than 50% through privatization by the end of 2024.

Currently, the bank is owned by the Reconstruction and Development Fund of Uzbekistan (82.19%), the Ministry of Economy and Finance (13.48%), "Uztransgaz" (1.21%), and other shareholders (2.26%).

The sale agreement for "Asakabank" was intended to be finalized by the end of 2023. However, in the summer of that year, the privatization was postponed to 2025. It is noteworthy that in May 2024, during the third Tashkent International Investment Forum, the government of Uzbekistan and the European Bank for Reconstruction and Development (EBRD) signed an agreement. The parties will work on preparing the bank for privatization, including its institutional transformation and corporate governance reform.

As of today, "Asakabank" is owned by the Reconstruction and Development Fund (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%).

Shares of "Alokabank" were expected to be placed in an IPO by July 2023, but it later became known that the deadline had been extended to January 1, 2025. The bank's shares are owned by the Reconstruction and Development Fund – 61.8%, "Uzbektelecom" – 22.03%, the Information and Communication Technologies Development Fund – 6.3%, the Ministry of Economy and Finance – 4.32%, the State Unitary Enterprise "Center for Electromagnetic Compatibility" – 2.11%, and others – 3.44%.

It should be noted that "Uzpromstroybank" owns a 33-story building with a total area of 82,280 square meters, "Asakabank" has a 26-story building with an area of 66,200 square meters, and "Alokabank" also has a 26-story building with an area of 81,440 square meters. It is known that these projects in the Tashkent City area were financed by the banks with their own funds amounting to $339 million. In May 2024, the high-rise buildings were put up for sale to investors through open bidding.

Recall that earlier, Deputy Director of Fitch Ratings Pavel Kaptel suggested postponing the privatization of Uzbekistan's state banks. According to the ratings agency representative, to enhance the sale prospects, banks need to demonstrate greater profitability. This requires more active growth in lending, which in turn necessitates capital availability. Kaptel notes that accelerated privatization could be facilitated by attracting funds from the European Bank for Reconstruction and Development, the International Finance Corporation, and other organizations into the country's banking sector.