Non-performing loans may reach 10 percent in 2024

According to forecasts provided by the Fitch rating agency, the volume of non-performing loans in Uzbekistan's banks may reach 9-10 percent of the total loan amount in 2024. This was reported by Zamin.uz.

Experts explain this situation by the continued recognition of risks in the activities of state-owned banks. Additionally, due to delays in the lending process, an increase in the depreciation of retail loan portfolios is also expected.

According to calculations by the Central Bank, in the first ten months of the current year, the volume of non-performing loans amounted to 22.4 trillion soums. During this period, the monthly growth rate was 5.1 percent.

A large part of this indicator corresponds to financial institutions with state ownership, whose share amounts to 15.8 trillion soums. In private banks, the volume of non-performing loans reached 6.6 trillion soums.

Nevertheless, the Fitch agency predicts that the stability of Uzbekistan's banking sector will be maintained in 2024. Analysts believe that Tashkent plans to implement more targeted and effective programs for the privatization of banks.

Source: Zamin.uz.