Uzbekistan to reform banking system

Source: Xinhua| 2020-05-13 16:01:16|Editor: huaxia

TASHKENT, May 13 (Xinhua) -- Uzbekistan plans to reform its banking system and sell off state shares in six Uzbek banks, according to a decree issued by President Shavkat Mirziyoyev on Wednesday.

The state shares in Ipoteka Bank, Uzpromstroybank, Asaka Bank, Alokabank, Qishloq Qurilish Bank and Turonbank will be privatized within 5 years, according to the decree.

Meanwhile, state shares in the authorized capitals of the National Bank for Foreign Economic Affairs, Agrobank and Microcreditbank will be maintained to provide financial services, support investment projects, and ensure regional accessibility of banking services during the reform period, the document said.

The decree defines measures to increase banking efficiency by creating equal competitive grounds in the financial market. It focuses on market-based lending, the quality of the loan portfolio and risk management, corporate governance and managers with international practice experience.

Earlier this year, the Central Asian nation has also announced plans to fully sell off state shares in more than 1,000 enterprises and partially in other companies.

Since Mirziyoyev took office in 2016, Uzbekistan has taken a series of measures to promote economic reforms, including liberalizing its foreign exchange market, reducing taxes, and offering preferential treatment to foreign investment. Enditem