RESOLUTION OF THE CABINET OF MINISTERS OF THE REPUBLIC OF UZBEKISTAN

of June 25, 2019 No. 523

About measures for further transformation of joint commercial mortgage bank "Ipoteka-bank" and subsequent its privatization with participation of International Finance Corporation

The measures for reforming of bank system performed in the republic provided conditions for transition to realization of new stage of the development of the bank sphere providing implementation of the market principles in banking activity by means of decrease in the state share and privatization of banks including by the admission to processes of privatization of foreign investors.

Within the undertaken reforms from AKIB "Ipoteka-bank" (further - Ipoteka-bank) performs number of the actions directed to increase in efficiency of corporate management and investment appeal of bank in interaction with the International Finance Corporation (further - IFC), and also study of possibility of attraction of the credits and investments of IFC into the authorized capital the Mortgage bank.

Possible inclusion of IFC in shareholding structure, and also transformation process the Mortgage bank assumes further reorientation of activities of bank to maximization of financial effectiveness and implementation of modern business model taking into account the advanced international practice.

For the purpose of ensuring effective transformation of the business model the Mortgage bank providing high-quality increase in competitiveness and investment appeal of bank for the subsequent privatization the Cabinet of Ministers decides:

1. Take into consideration that the Mortgage bank and IFC is implemented the program of cooperation, within which:

agreements according to which institutional transformations and stages of creation of bases of modern commercial bank are performed are signed, and also the conclusion until the end of 2019 of agreements on realization of the following stage of transformation of bank is provided;

agreement signature according to which IFC the Mortgage bank will provide money in the amount of 35 million US dollars in equivalent (in Uzbekistan sum) in type of loan, with possibility of converting of all amount or part of debt the Mortgage bank before IFC on this credit in in addition issued common shares the Mortgage bank is planned.

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