The deadline for selling state-owned shares in three major banks—Asakabank, Uzpromstroybank, and Aloqabank—has been officially extended to 2025. The decision was outlined in a Presidential Decree dated December 27, 2024.
The privatization of these banks, along with the previously sold Ipoteka Bank, Uzagroexportbank, and Poytakhtbank, was initially part of a broader Roadmap for reforming Uzbekistan’s banking sector for 2020-2025. This roadmap was established by a Presidential Decree issued on May 12, 2020.
People’s IPO and Revised Timelines
Asakabank, Uzpromstroybank, and Aloqabank had been included in a list of 40 enterprises slated for partial privatization via the People’s IPO program, under which 2% of their shares were to be offered to the public. However, in July 2023, the timeline for these banks was extended, and by April 19, 2024, a new Presidential Decree invalidated the original list of enterprises earmarked for this initiative.
Ipoteka Bank: A Landmark Privatization
Ipoteka Bank, one of Uzbekistan’s leading financial institutions, became the first state-owned bank to successfully complete its privatization process with foreign involvement. In June 2023, OTP Bank, a Hungarian banking group, acquired a 75% majority stake in Ipoteka Bank, with plans to purchase the remaining 25% over the next three years.
OTP Bank’s entry into the Uzbek market marked it as the first foreign bank to participate in Uzbekistan’s banking sector privatization. With a 7.6% market share in assets and a retail client base of 1.5mn, Ipoteka Bank plays a key role in the country’s financial landscape.
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