Tashkent, Uzbekistan (UzDaily.com) -- The Government of Uzbekistan plans to privatize Ipoteka-Bank until 2022.

The Cabinet of Ministers issued a decree “On measures for the further transformation of the joint-stock commercial mortgage bank Ipoteka-Bank” and its subsequent privatization with the participation of the International Finance Corporation”.

The document notes that Ipoteka-Bank and the IFC are implementing a cooperation program. Within its framework, institutional changes are being carried out and a modern commercial bank is being created.

By the end of 2019, it is planned to sign a package of agreements on the implementation of the next stage of transformation. Also, the IFC will provide a loan of US$35 million (equivalent in Uzbek soums) to Ipoteka Bank with the ability to convert all or part of the debt on it into additional issued ordinary shares.

To ensure the independence of the bank, until the end of 2020, candidates for members of the supervisory board and the board will not be coordinated with state bodies and their leaders.

It is planned to form a new composition of the supervisory board without the participation of heads of state bodies, the number of independent directors will be brought to 5 and the chairman of the supervisory board will be elected from among them.

The Supervisory Board will form management (the executive body) and determine the size of the salary of the chairman and members of the board based on the standards of market practice and the needs of Ipoteka Bank.

According to the document, the bank will independently make decisions on the issues of crediting and financing projects, based on market conditions. The bank’s funds will not be attracted to invest in the authorized capital of commercial organizations with a profile that is not characteristic of banking activities.

The Bank sells assets non-characteristic of banking activities, formed as a result of its investment activities.

It is expected that a “road map” on the privatization of Ipoteka Bank will be adopted, envisaging the main stages of the privatization process and the obligations of the parties until the end of 2022.

Until that time, the state’s share in the authorized capital of the bank will be reduced to a level below 50%.

In the process of privatization of the bank, the share of the Fund for Reconstruction and Development of Uzbekistan in the amount of US$50 million will be realized.