Uzbekistan’s largest bank Uzpromstroybank to go private by 2023

By bne IntelIiNews April 6, 2021

Uzbekistan’s largest lender, Uzpromstroybank (UzPSB), is aiming to go private by 2023.

According to a government resolution adopted on March 29, the International Finance Corporation (IFC) is to open a $75mn credit line in relation to the goal of what is one of the oldest state-owned banks. All or part of the loan is to be converted into additional ordinary shares.

The Finance Ministry and UzPSB are to draw up a privatisation roadmapwithin the next two months.

As part of the privatisation process, the bank`s supervisory board is to be revamped; it will add five new independent members with international banking experience.

From now on, UzPSB is banned from channelling its funds into the authorised capital of commercial organisations in areas that are not related to banking activities.

The resolution recommended the bank accelerate the implementation of tasks assigned to the motivation mechanism for employees of head office and the branch network, including the implementation of key performance indicators (KPIs); sell non-bank assets acquired as a result of the bank's investment activities; and take effective measures to reduce the share of foreign currency loans.

UzPSB saw its assets increase to $4.7bn in 2020. Its credit portfolio grew to $3.8bn.

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