The non-performing loans (NPL) volume burdening Uzbekistan’s banks decreased by almost UZS 2.5 trillion ($214mn) to UZS 14.3 trillion in the 12 months to July 1, according to a central bank report on the financial condition of the country’s banking sector.
The share of problem debts in the credit portfolio of the banking system thus fell by 1.5 pp y/y to 3.4%.
The volume of NPLs related to individual clients declined by 2.1 pp to 3.1%. Corporate NPLs decreased by 1.3 pp to 3.5%.
The share of bad loans dropped significantly in housing and communal services (by 3.7%), trade and catering (by 2.6%), agriculture (by 2.3%) and construction (by 1.6%).
To mitigate the negative impact of credit risks on financial stability, banks increased their total reserves by 23% in the first six months of this year compared to 1H23.
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