TASHKENT, Uzbekistan, March 27. Uzbekistan plans to sell at least two banks to foreign strategic investors by the end of 2025, according to Fitch Ratings, Trend reports.
The agency notes that this step is aimed at increasing the share of non-state banks from 32 percent (as of the end of 2023) to 60 percent.
According to Fitch's report on Uzbekistan's banking sector, the timing of the sale of two large banks, Uzpromstroybank (Uzbek Industrial and Construction Bank) and Asakabank, was recently postponed to late 2024 and late 2025, respectively. Analysts speculate on possible further postponements.
Fitch experts note that sales prospects may improve if international financial institutions such as the European Bank for Reconstruction and Development or the International Finance Corporation become minority shareholders, which would signal to potential investors that pre-sale preparations have been completed.
The report also notes that implementation of Uzbekistan's banking strategy and improvements in the sector may take longer due to structural problems and new risks.
For example, the share of non-performing loans in Uzbekistan's banks is estimated to have risen to more than 10 percent of total loans in 2023 and is expected to rise further.
Meanwhile, Fitch Ratings has affirmed Uzbekistan's long-term foreign currency issuer default rating (IDR) at 'BB-' with a stable outlook.