SQB, one of Uzbekistan's leading banks, plans to attract $3.1 bn from the international financial market in 2024, as it was reported by the presidential press service on May 2.
The press release underscored the impressive growth trajectory of Uzbekistan's banking sector over the past five years. During this period, the capital of banks has doubled, showcasing robust financial health and increased investor confidence. Additionally, the loan portfolio of these banks has grown by 2.3 times, while the volume of annual lending has surged by 1.8 times. This expansion underscores the banks' pivotal role in supporting the country's economic development through enhanced lending activities.
A notable achievement for Uzbekistan's banking sector has been the successful issuance of Eurobonds by four banks, which collectively raised $1.3 bn. Furthermore, in the previous year, banks in Uzbekistan attracted foreign loans totaling $3.8 bn. In a testament to their growing credibility and financial strength, large clients of these banks also directly secured $6 bn in foreign loans without requiring government guarantees.
Looking ahead, SQB has laid out ambitious plans to attract an additional $2.8 bn in foreign investment during 2024-2025. These funds are earmarked for the development of 529 projects within the building materials industry. The implementation of these projects is projected to create 25,000 new jobs.
Earlier Daryo reported that Uzbekistan's banking sector privatization, particularly regarding SQB, faces delays. Chairman of the Central Bank of Uzbekistan, Mamarizo Nurmuratov cited hurdles in transforming corporate governance within SQB, crucial for its privatization. Efforts, led by international financial institutions like the IFC, EBRD, and ADB, are underway. Nurmuratov stressed the need for training personnel to meet global banking standards, including risk-based supervision. Additionally, Uzbekistan's inclusion in a list of countries with sanctions risks complicates matters, deterring potential investors. Despite challenges, Nurmuratov reaffirmed the priority of selling state-owned banks to strategic investors with banking expertise.
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