Uzbekistan–Hungary financial cooperation: OTP Bank’s acquisition of state-owned Ipoteka Bank

Uzbekistan–Hungary financial cooperation: OTP Bank’s acquisition of state-owned Ipoteka Bank

Uzbekistan and Hungary continue strengthening bilateral economic and financial ties, particularly in the banking sector. A pivotal step in this cooperation was the signing of a Memorandum of Understanding between Uzbekistan’s Ministry of Finance and OTP Bank on December 22, 2020.

Following this, under Presidential Decree No. PD-5244 dated September 14, 2021, a Sale and Purchase Agreement (SPA) was signed on December 12, 2022, involving the Ministry of Finance, the Ministry of Investments and Foreign Trade, and OTP Bank for the privatization of the state-owned Ipoteka Bank.

As a result of this agreement, on June 12, 2023, OTP Bank acquired a 75% stake in Ipoteka Bank, bringing its total ownership to 73.71%. The remaining government stake stands at 24.54%. OTP Bank paid in full for this majority stake on the same day, while the remaining 25% is scheduled to be paid by June 2026, according to the agreement.

This transaction marks a significant milestone in Uzbekistan’s banking sector reforms and its broader agenda to attract strategic foreign investors.
 

Turkic Investment Fund launched to deepen regional economic integration

On March 16, 2023, during the extraordinary summit of the Organization of Turkic States (OTS) held in Ankara, member states signed a historic agreement establishing the Turkic Investment Fund (TIF).

The fund was jointly founded by Azerbaijan, Kazakhstan, Kyrgyzstan, Turkey, and Uzbekistan, with its headquarters located in Istanbul. The Fund's initial authorized capital is set at USD 500 million.

The primary goal of the TIF is to enhance economic cooperation, promote mutual trade and investments among OTS member states, and support priority sectors such as small and medium enterprises, infrastructure development, renewable energy, agriculture, tourism, and information technologies.

On May 21, 2024, the Fund’s inaugural Board of Governors meeting was held in Istanbul, officially launching its operations. The TIF is now actively implementing regional integration programs aimed at fostering shared prosperity across the Turkic world.

Strengthening cooperation in the digital economy across the Turkic states

On March 18, 2025, Uzbekistan’s President ratified the Agreement on Cooperation in the Digital Economy among the governments of the Organization of Turkic States (OTS) through Presidential Decree No. PD–108.

Originally signed on November 6, 2024, in Bishkek during the OTS Council of Heads of State, the agreement seeks to deepen collaboration in digital trade and technology.

The agreement promotes cross-border electronic commerce, with specific provisions on data protection, digital payments, e-invoicing, and consumer rights. It also emphasizes the importance of using innovative digital solutions to expand trade volumes among member states.

This strategic digital partnership aligns with Uzbekistan’s ambition to integrate into the global digital economy and to enhance cooperation with fellow Turkic states based on shared technological and economic priorities.