The sector outlook for Uzbek banks remains stable after 2018 results confirmed solid asset quality and profitability Fitch Ratings says. However, capitalization and liquidity are modest, and there are risks from rapid loan growth (51% in 2018) and foreign-currency (FC) lending.
Uzbekistan’s Ferghana ValleyMicro, small and medium enterprises (MSMEs) across Uzbekistan’s Ferghana Valley will benefit from a new rural enterprise development project approved on March 21 by the World Bank’s Board of Executive Directors. The project will be supported by a US$ 200 million loan from the International Bank for Reconstruction and Development (the World Bank Group’s member).
The agency classifies Uzbekistan’s banking sector in group ‘8’ under its Banking Industry Country Risk Assessment (BICRA). The sector’s peers are in Russia, Kazakhstan, Georgia, Armenia, Azerbaijan, Kenya, Tunisia and Argentina.
On March 12, a meeting of the Uzbek-Russian Sub-Commission on Interbank Cooperation was held in Moscow, which was attended by representatives of central banks, ministries of finance and economic development, banks of the two countries, as well as representatives of the Uzbek Foreign Currency Exchange and the Moscow Exchange. The meeting was co-chaired by the First Deputy Chairman of the Uzbek Central Bank T. Ishmetov and the First Deputy Chairman of the Bank of Russia K. Yudayeva.
Rating-Agentur Expert RA has upgraded Uzbekistan's sovereign government credit rating (SGC) from ‘B+’ (Moderately low level) to ‘BB-’ (Sufficient level) in national currency and from ‘B+’ (Moderately low level) to ‘BB-’ (Sufficient level) in foreign currency. The rating outlook is stable which means that in the mid-term perspective there is a high probability of maintaining the rating score.
The Central Bank, together with the government, is preparing for phased privatization of banks, in a move which will become part of the financial sector's development concept for medium term, the chairman of the Central Bank Mamariso Nurmuratov announced today at a press briefing.
Uzbekistan is making strong progress implementing challenging economic reforms to support growth and build opportunities for citizens, says Cyril Muller, World Bank Vice-President for Europe and Central Asia. Visiting Uzbekistan on 26-27 February, Mr. Muller reaffirmed the World Bank’s continued support for the country’s transformation agenda.
On 20 February 2019, in the Ministry of Finance, the mission headed by Albert Eger, Chief Financial Officer of the International Monetary Fund (IMF) held a meeting with government officials.