The Uzbek Central Bank annulled the license of Business Bank, the largest private bank in the country. The authorities closed the bank on charges of numerous violations of the acting legislation. All operations with deposits are suspended at this point.

The license was annulled because the bank "stood in violation of standard acts of the Uzbek Central Bank in accordance with Articles 17 and 53 of the Law of the Republic of Uzbekistan "On the Central Bank" and Article 14 of the Law "On banks and banking".

Resolution of the Central Bank specifies establishment of a liquidation commission and return of all deposits to customers.

According to Prime-TASS news agency, Business Bank was established in 2002. It was the largest private bank in the republic until now. Its founders own 49% (including 18.8% owned by the Uzbek-American Naytov - a company specializing in informational technologies - and 13.2% owned by its subsidiary NCI Projects Inc). The remaining 51% belong to individuals.

In late 2004, the European Bank of Reconstruction and Development proclaimed the intention to invest $5 million in the bank and buy up to 40% interest in it.

A source close to Business Bank management told Reuters that the major shareholder, prominent Tashkent businessman Sergei Tsoi, had left the country last week-end unable to cope with the pressure applied by the circles associated with the government.

Reuters quotes its source in the banking sphere that the license was annulled when Business Bank refused to sell out to another private bank rapidly gaining weight in Uzbekistan. According to what information Ferghana.Ru has compiled, the matter concerns Credit Standard. There are reports (unconfirmed) that this bank is controlled by some structures associated with the president's daughter Gulnara Karimova.