Tashkent, Uzbekistan (UzDaily.com) -- Support Level has acquired a 100% state stake in the authorized capital of JSCB Uzagroexportbank for US$5 million, the State Assets Management Agency of Uzbekistan said in a statement.

The shares were sold without a public tender and on the recommendation of the international consulting company Grant Thornton.

In accordance with the terms of the agreement, Support Level immediately pays the redemption price. Also, the company should increase the authorized capital of the bank by 29 billion soums and invest US$50 million in the development of banking infrastructure, the introduction of technologies and banking products.

As of 1 December 2022, the bank’s loan portfolio is 6.1 billion soums, while problem loans make up a significant part, and the bank’s losses to date amounted to 31 billion soums. As a result, the bank’s net assets fell to 50 billion soums.

Uzagroexportbank received a warning from the Central Bank of Uzbekistan about non-compliance with economic standards for banking supervision, failure to form sufficient reserves for possible losses on assets, failure to fully comply with the established procedures for issuing loan documents, as well as failure to meet the requirements for the authorized capital (authorized the capital was formed by 29 billion soums less than the requirements) of commercial banks in accordance with the current legislation.

The Support Level proposal was considered by the Government of Uzbekistan and the State Commission for conducting tenders for the sale of state property and approved by relevant decisions and regulations, the Agency notes.

The State Assets Management Agency and Support Level held negotiations and signed an agreement on the sale and purchase of a 100% state-owned stake in the authorized capital of Uzagroexportbank. Shares of Uzagroexportbank are withdrawn from the quotation list of the stock exchange and are sold over the counter.

According to official data, Support Level was registered in August 2015 in Tashkent. The main activity is the activities of other organizations for work with personnel. The head of Support Level is Iskander Usmanov, the sole founder is Olimjon Shadiev.