EBRD: Privatizing Asakabank and SQB to Shift Majority of Uzbek Bank Assets to Private Hands

October 2, 2026 at 06:10 PM2 min

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Completion of the privatization of Asakabank and Uzsanoatkurilishbank (SQB) will for the first time put the majority of Uzbekistan's banking assets in private hands, EBRD head of Uzbekistan Andi Aranitasi said on September 30. He spoke at an AmCham Uzbekistan event on the country's economic outlook. IMF and ADB representatives at the same event linked the privatization's success to reducing subsidized lending and developing the capital market.

Key Facts

EBRD head of Uzbekistan Andi Aranitasi said on September 30 that completing the privatization of Asakabank and SQB will for the first time put the majority of Uzbek banking assets in private hands.
In early 2026, the Ministry of Economy and Finance, EBRD, and Asakabank signed a term sheet providing for EBRD to enter the bank's capital with a 15% stake during 2026.
A presidential decree in April allocated about $95 million from the budget for Asakabank's recapitalization and allowed conversion of its roughly 2 trillion soums debt to the Ministry of Economy and Finance into capital.
SQB accounts for 11% of banking sector assets, and EBRD has provided it a $50 million convertible loan; if converted, the state's stake in SQB would fall below 50%.
IMF resident representative Koba Gvenetadze said subsidized and targeted lending programs, mainly through state banks, should shrink as the economy grows.

Privatization Milestones

The first major banking sector deal was the sale of Ipoteka-bank to Hungarian OTP Group, which acquired a controlling stake in 2023. Asakabank is next, with EBRD working with authorities on its privatization for about six years. In early 2026, the Ministry of Economy and Finance, EBRD, and Asakabank signed a term sheet providing for EBRD to enter the bank's capital with a 15% stake during 2026. A presidential decree in April accelerated preparation, allocating about $95 million from the budget for recapitalization and allowing conversion of the bank's roughly 2 trillion soums debt to the Ministry of Economy and Finance into capital. In parallel, EBRD and IFC are working on SQB's privatization; SQB holds 11% of banking sector assets, and EBRD previously provided a $50 million convertible loan that could reduce the state's stake below 50% if converted.

Subsidized Lending Concerns

IMF resident representative Koba Gvenetadze confirmed that privatization of the two banks is underway but noted that ownership change alone does not resolve the issue of subsidized and targeted lending programs, which operate mainly through state banks. He acknowledged that such programs exist and will continue to exist, but their scale should shrink as the economy grows. EBRD lead regional policy specialist for Central Asia and Mongolia Assel Aitkhozhina explained that a high share of subsidized credit, typical for both Uzbekistan and Kazakhstan, weakens the impact of central bank interest rate decisions on the economy.

Capital Market Development

ADB senior country economist for Uzbekistan Sherzod Akbarov linked bank privatization to capital market development. Aranitasi said the banking sector reflects the state of the economy: when most of its assets belong to private business, the private sector has more opportunities for growth.