Five major banks will be privatized in Uzbekistan

The draft of Uzbekistan's national strategy aimed at 2030 has been put up for discussion on the SOVAZ portal. This was reported by Zamin.uz.

The document reflects plans to reduce the state's participation in the banking sector. In particular, the privatization of five major banks is envisaged.

This was reported by upl.uz. According to the strategy, by 2026, the number of state-owned banks is expected to decrease by at least one.

By 2030, it is planned that only four main financial institutions will remain under state control. The previous version indicated the possibility of retaining 3–4 banks.

Currently, the state holds shares in nine banks: National Bank for Foreign Economic Activity (NBU), Agrobank, Uzpromstroybank, Asakabank, Xalq Bank, Business Development Bank, Microcreditbank, Alokabank, and Turonbank. According to the plan, at least one bank should be privatized each year.

Additionally, the strategy sets a goal to reduce the state's share in bank assets. By 2026, this indicator should decrease to 65 percent, and by 2030, to 55 percent.

As of December 1, 2023, state banks controlled 64.53 percent of assets, amounting to 576.2 trillion soums. It is noteworthy that the updated strategy has removed the clause mandating the attraction of foreign banks to the domestic market.

According to economic analyst Otabek Bakirov, the most realistic candidates for privatization in the near future are smaller banks, such as Alokabank or Turonbank. The full privatization of large banks, including Uzpromstroybank and Asakabank, may be postponed until 2028.

In 2026, the European Bank for Reconstruction and Development (EBRD) reportedly reached an agreement to purchase 15 percent of Asakabank's shares. At the same time, the privatization processes of Uzpromstroybank are planned to be completed in 2025–2026.

NBU, Agrobank, Microcreditbank, Xalq Bank, and Business Development Bank will remain under state control until the end of 2028. According to a presidential decree, in September, 30 percent of Uzpromstroybank's shares were transferred to the National Investment Fund of Uzbekistan.

Experts from Fitch agency have identified this bank as a primary object for sale. The history of Uzbekistan's financial system dates back to the late 19th century.

At that time, a branch of the State Bank of the Russian Empire was established in Tashkent, laying the foundation for the region's integration into the international financial system.