IMF Urges Uzbekistan to Resume Bank Privatisation and Strengthen Oversight
The International Monetary Fund (IMF) has recommended that Uzbekistan restart the privatisation of banks, building on previous asset sales, according to the Fund’s latest report on the country’s financial sector.
The IMF advised Tashkent to improve the accuracy of reporting on asset quality prior to sales. It also stressed the importance of strengthening corporate governance and attracting investors with experience in the banking industry.
In addition, IMF experts recommended that state support for priority sectors should be provided through transparent and market-based mechanisms. They proposed a gradual phase-out of direct and concessional bank lending programmes.
«There is no publicly available data on the effectiveness of social programmes that include direct and concessional lending. To improve transparency in the allocation of direct credit, the government should consider creating a transparent digital platform,» the report stated.
The IMF also assessed the work of the National Agency for Prospective Projects (NAPP), which regulates Uzbekistan’s capital and insurance markets. The Fund noted that the agency has limited control over these sectors due to weak staff capacity, insufficient regulatory tools, and narrow legal authority.
The report expressed concern over credit risk management in microfinance institutions and recommended closing regulatory gaps affecting non-bank financial entities.
Earlier, Kursiv Uzbekistan reported that the World Bank will support reforms in Uzbekistan’s financial sector.
