The President of Uzbekistan signed a decree on April 20 regarding additional measures to accelerate the privatization of Asakabank. The document envisages the transformation of the bank, preparation for the sale of a stake to a strategic investor, and the involvement of the European Bank for Reconstruction and Development (EBRD). This decision is based on an agreement signed between the Ministry of Economy and Finance, the EBRD, and Asakabank, which includes improving the bank's operational efficiency and capitalization, as well as the possibility of the EBRD acquiring a 15% stake.
Within the framework of the transformation, it is planned to transfer all bank operations to market principles, eliminate non-core functions, and align asset values with market assessments. The Ministry of Economy and Finance has been tasked with implementing a mechanism within one month to cover potential losses from problematic loans identified through asset quality analysis, for which state budget funds and the ministry's long-term resources in the bank may be used. Additionally, part of Asakabank's assets will be transferred to the State Assets Management Agency, including four projects (with a total value of 382.6 billion soums) that are subsequently planned for privatization or trust management.
To strengthen the bank's capital, approximately $95 million is planned to be allocated from the state budget in 2026, while net profits for 2024–2025 will not be distributed as dividends. The Ministry of Economy and Finance has obtained the right to restore Asakabank's capital, which may decrease after the transfer of part of the assets, by converting about 2 trillion soums of loans issued to the bank into its charter capital. Asakabank has been permitted to engage an international legal and financial advisor (including from the "Big Four") to support the deal with the EBRD and prepare for the stake sale.
The Ministry of Economy and Finance and Asakabank have been instructed to submit proposals on the sale price of the 15% stake and the terms of the investment agreement with the EBRD by September 1, 2026. Also, separately envisaged is the development of a project for the use of the territory of the former Tashkent Agricultural Machinery Plant, taking into account social and economic goals. In May 2024, the President of Uzbekistan announced the signing of an agreement with the EBRD on the privatization of Asakabank.
Currently, Asakabank is owned by the Reconstruction and Development Fund at 71.09%, the Ministry of Economy and Finance at 28.17%, and other organizations with minor stakes. Previously, the privatization deadlines for three major banks have been postponed multiple times, with Asakabank's privatization planned for the end of 2025—earlier it was scheduled for the end of 2023. The latest deadline envisages the sale of the state bank in 2026–2027, indicating the complexity and delays in the process.
Source: www.gazeta.uz