The Central Bank will sell state shares in banks; Fitch rates Uzbekistan’s upcoming FC Bond ‘BB-(EXP)’; A delegation of Uzbekistan meets with World Bank Vice President; Uzbekistan and Belarus discuss possibility of financing of joint projects; Uzbekistan becomes member of International Islamic Trade and Finance Corporation;
The Central Bank is developing a strategy for privatizing the banking sector, Chairman of the Central Bank Board Mamariso Nurmuratov said today at a meeting of the International Press Club.
The sale of the state stake will be held not only by the withdrawal of shares on the stock market. The Central Bank intends to sell banks to strategic investors, who will be able to introduce positive changes into the system.
In addition, the state intends to sell its shares in banks through IPO. In this direction, according to the Head of the Central Bank, work is undergoing at Alokabank and Asia Alliance Bank.
Another area in which privatization will be carried out is the issue of additional shares by banks with a high state stake in the authorized capital. Thus, the government intends to attract private capital to the banking sector
Fitch Ratings has assigned Uzbekistan’s upcoming foreign currency-denominated senior unsecured bonds an expected rating of ‘BB-(EXP)’.
The assignment of the final rating is contingent on the receipt of final documents conforming to information already received, the agency said.
Fitch Ratings added that the rating is in line with Uzbekistan’s Long-Term Foreign-Currency Issuer Default Rating (IDR), which Fitch assigned at ‘BB-’ with a Stable Outlook on 20 December 2018.
The bonds’ rating is sensitive to changes in Uzbekistan’s Long-Term Foreign-Currency IDR.
A delegation of the Development Bank of the Republic of Belarus pay visit to Tashkent to discuss with the Uzbek credit and financial institutions, dealers of Belarusian exporters in Uzbekistan and partner companies, financing joint Belarusian-Uzbek projects.
The delegation held a meeting with leading dealers of Belarusian enterprises in Uzbekistan and partner companies to discuss effective schemes for financial and credit support of Belarusian-Uzbek economic projects, taking into account the capabilities of Development Bank of the Republic of Belarus and Uzbek credit and financial organizations.
Shavkat Mirziyoyev signed a decree “On membership of the Republic of Uzbekistan in the International Islamic Trade and Finance Corporation and the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC)”.
According to the document, the leadership of the International Islamic Trade and Finance Corporation (IITFC) and the Islamic Corporation for the Insurance of Investments and Export Credits (ICIEC) approved the decision on the accession of Uzbekistan to these organizations.
The Ministry of Investments and Foreign Trade has been instructed to ensure, in the prescribed manner, a subscription for 250 ICIEC shares in the amount of $347.5 thousand and IITFC shares in the amount of $695 thousand.
A delegation of Uzbekistan, consisting of the Deputy Prime Minister Tanzila Narbayeva, the Minister of Employment and Labor Relations Sherzod Kudbiyev and the Chairman of the Association Uztekstilprom Ilhom Haydarov met with the Vice President of the World Bank for Europe and Central Asia Cyril Muller on 4 February 2019.
According to the Ministry of Foreign Affairs of Uzbekistan, the sides discussed both issues of bilateral cooperation and within the framework of the Country Program for Decent Work in Uzbekistan, implemented jointly with the International Labor Organization (ILO).
The head of the WB noted the possibility of further cooperation in three main areas. The first is the continuation of the tripartite format between Uzbekistan, the World Bank and the ILO. The second is the promotion of employment and the creation of favorable working conditions. The third direction is the implementation of projects related to infrastructure development, increasing energy efficiency, modernizing agriculture and ensuring food security, increasing the country’s trade and export potential.