Presented by: Qobiljon Yunusov, Senior Lecturer, wiut vote of confidence in creditworthiness of Uzbek gov’t

Low level of bank deposits

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Key performance indicators of the banking sector

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Before recent new government reforms:
businesses were starved of foreign funding

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Where could or should Uzbek banking sector be
In 5-10 years from now?
Opportunities

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Opportunities: a big room for growth
Banking sector credit to GDP ratio in transition economies.

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How best to grow retail banking penetration in Uzb?
Give 
mortgage 
loans!

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In April 2018, IFC signed a landmark swap agreement with JSCB Hamkorbank. Under the
agreement, IFC will hedge Hamkorbank’s currency exposure for up to US $40 million— the
transaction will enable Hamkorbank to better manage its assets and liabilities amid scarce
hedging opportunities.
•
In June 2018, IFC issued 2 two-year 80 billion UZS ‘Samarkand’ bonds (160 billion UZS total or
$20 million equivalent) on London Stock Exchange. The raised funds will be channeled in the
form of long-term credit in UZS to local businesses through JSCB Hamkorbank, the country’s
leading private bank.
•
In February 2019, first ever Eurodollar bonds for a total of $1 billion were issued by the
government of Uzbekistan.
•
Some major banks will be publicly-listed and a quarter of their shares will be sold to public.
•
Uzbekistan Mortgage Refinancing Corporation was created with the purpose of developing
the mortgage lending sector in Uzbekistan. ADB agreed to provide up to $500 million in
(phased) funding.