OTP Bank plans to close the first deal on the privatization of “Ipoteka-Bank” within two weeks

The Hungarian OTP Bank plans to close the first deal for the privatization of Ipoteka-Bank in Uzbekistan within the next two weeks. This was announced on May 17 at the business forum of the European Bank for Reconstruction and Development (EBRD) in Samarkand by Laszlo Wolf, Deputy General Director of OTP Bank, “Gazeta.uz” correspondent reports.

The agreement on the privatization of Ipoteka-Bank was signed in December 2022. Under the agreement, the Hungarian OTP Bank acquires 100% of Ipoteka-Bank shares owned by the Ministry of Finance of Uzbekistan (almost 97% of the total block of shares) in two stages: 75% of the shares immediately and the remaining 25% – three years after the financial closing of the first transaction, which is expected to take place in two weeks.

At the end of March, at a meeting with the president, it became known that the state stake in Ipoteka-Bank had been sold for $324 million. At the same time, the deal has not yet been signed, and it is also unknown whether the specified amount is due for 75% or 100% of the bank’s share.

Deputy General Director of OTP Bank Laszlo Wolf said that the decision to enter the market of Uzbekistan was made three years ago, as the country is suitable for the further rapid development of OTP Bank.

According to him, after the start of the war and the crisis, the bank’s management began to doubt whether it was worth entering the market of Uzbekistan, but in the end decided to privatize the local bank “with full confidence in the development of the economy of this country.”

“We signed an agreement on the purchase of a 70% stake in Ipoteka Bank in December 2022 and began work on the development of the bank. We have not closed the deal yet, but we hope to close it within two weeks. But we have been in very active contact with the bank since the signing of the agreement,” said Laszlo Wolf.

He noted that Uzbekistan’s GDP has grown from $60 billion to $80 billion in three years, and this year it is expected to reach $84-85 billion. “In three years, the country has become different: the market and the banking sector have become much more developed, which is positive. But at the same time, competition has also become stronger, especially from new digital banks. In general, all banks have become better,” said the Deputy Director of OTP Bank.

Laszlo Wolf said that OTP Bank plans to develop within a hybrid model with bank branches and digital banking, adopting “the best of both sales channels.” “We have plans to increase the level of service in branches, reduce waiting times, increase customer satisfaction, improve the quality of services for corporate clients, cash management, rates, financial conditions,” he said.