Monday, 22, July, 2024

The share of non-performing loans (NPL) in Uzbekistan banks as of June 1 increased to 4.7% of the total loans, the Central Bank said in a report.

In 2020 year-end, the share of non-performing loans was at 2.1%, while as of February 1, the share rose to 2.7%, as of March 1, to 2.8%, 7.8 trillion soums, (US$ 1 =1,060 soums) (in total loan portfolio - 280.2 trillion soums), as of April 1 - up to 3.6%, or 10.1 trillion soums (283.4 trillion soums), as of May 1 - up to 4.4%, or 12.9 trillion soums (292 trillion soums).

As of June 1, the figure rose to 4.7%, or 14 trillion soums (297 trillion soums), that is, the NPL volume increased by 8.3% over the month.

The share of NPL increased in 9 out of 13 banks with a state share (in total by 9.1% - up to 12.2 trillion soums). In particular, the National Bank of Uzbekistan (NBU) has the NLP figure rose from 2.6 trillion to 3 trillion soums (by 36%), Uzsanoatqurilishbank - from 1.5 trillion to 1.7 trillion soums, Agrobank - from 1.1 trillion soums to 1.3 trillion soums, Xalq Bank - from 1.1 trillion to 1.2 trillion soums (45.7%), Ipoteka Bank - from 1.2 trillion to Mikrocreditbank - from 331 billion to 705 billion soums (91.3%), Aloqabank - from 256 billion to 291 billion soums, Asia Alliance Bank - from 163 billion to 204 billion soums, Uzagroexportbank - from 34 billion to 52 billion soums.

In turn, NPL did not change in Asaka Bank, and also decreased in Qishloq Qurilish Bank, Turonbank and Poytakht Bank.

The quality of the loan portfolio among private banks remained virtually unchanged (NPL growth by 2.6%), but the situation remains difficult in Turkiston Bank (82.5% of problem loans), Hi-Tech Bank (89.3%) and Madad Invest Bank (28.9%). It can also be noted that Hamkorbank managed to reduce NLP from 349 billion to 270 billion soums, while Ipak Yuli, on the contrary, saw an increase in the fiigure - from 190 billion to 262 billion soums.

Sanjar Nosirov, Director of the Department of Methodology for Regulating the Activities of Credit Institutions under the Central Bank, noted that due to the coronavirus pandemic, business activity in the country has sharply decreased, and enterprises and the population are experiencing difficulties in repaying debts to banks due to lockdown restrictions.

Shavkat Mirziyoyev also drew attention to the situation with problem loans. At a video conference on May 12, he said that NPLs for 3 trillion soums were formed in the industry, services and trade - 2.1 trillion soums, agriculture - 1.8 trillion soums, construction - 978 billion soums, transport and communications - 547 billion. soums. In provinces, this figure in Samarkand, Surkhandarya and Tashkent provinces is 1 trillion soums each.

The President stressed that deputy prime ministers, governors and mayors of regions, districts and cities, heads of sectors and banks will be personally responsible for the return of these loans.

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