Hungarian OTP Bank is expected to finalize the privatization of "Ipoteka-bank" in the near future. The announcement was made by László Wolf, Deputy CEO at OTP Ban, during a recent business forum hosted by the EBRD in Samarkand, media reports.
Wulf revealed that the buyer has been working on a new asset since December last year, following the sale of the previous asset. While the transaction has yet to be completed, Wulf expressed optimism that it would be finalized within the next two weeks, adding that active communication has been maintained with the bank since the agreement was signed.
OTP Bank's decision to enter the Uzbekistan market in 2020 was based on the favorable business environment prevalent in the country. Over the past three years, the Uzbek economy has grown from $60bn to $80bn and is projected to reach $84.85bn.
The bank plans to adopt a hybrid model that combines physical branches with digital banking to enhance service, streamline operations, and improve customer satisfaction, cash management, rates, and overall financial conditions.
OTP Group's intention to enter the Uzbek market by acquiring a local bank was first revealed in 2021, with a memorandum signed for acquiring a 75% stake in Ipoteka Bank, slated for privatization since 2019.
The OTP management team views Uzbekistan as a market with significant growth potential, given its large population and relatively low market saturation. Although the bank briefly suspended the purchase in the spring of 2022, Laszlo Benchik confirmed that the bank's interest in the deal remains undiminished.
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