The European Bank for Reconstruction and Development (EBRD) and Uzbekistan's Ministry of Economy and Finance aim to finalize an agreement concerning the privatisation of Asakabank in May 2024. In addition to the Asakabank agreement, plans are underway to approve a new large privatisation programme shortly. Efforts are being intensified to expedite the sale of stakes in two major state-owned banks, aiming to achieve a 60% divestment by the end of 2025.
Deputy Prime Minister and Minister of Economy and Finance, Jamshid Kuchkarov, articulated intentions to hasten the privatisation process of Uzpromstroybank. Meetings with representatives of Rothschild & Co. have been convened to facilitate discussions and strategies in this regard.
Collaborative initiatives between the government, the Central Bank, and the Presidential Administration are underway to introduce Islamic finance into Uzbekistan's financial landscape. Minister Jamshid Kuchkarov expressed aspirations for cooperation with the Islamic Development Bank, intending to convene a roundtable discussion on the subject in July or September.
Islamic finance adheres to Shariah principles, with a notable prohibition on charging interest or predetermined rates on loans, reflecting principles of social justice and equity in Muslim laws.
Odile Renaud-Basso, President of the EBRD, is expected to visit Uzbekistan shortly, featuring as a speaker at the forthcoming Tashkent Investment Forum scheduled for May 2 and 3, underscoring the significance of international collaboration in Uzbekistan's economic reforms.
Deputy Director of Fitch Ratings, Pavel Kaptel, suggested potential delays in the privatisation of state-owned banks in Uzbekistan. Preparations for the sale are ongoing, contingent upon the involvement of international financial institutions in the banks' capital.
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