In March, the volume of money remittances from Russia to Uzbekistan has significantly decreased, said Central Bank Chairman Mamarizo Nurmuratov.

“In the first half of March, the total volume of money remittances to Uzbekistan decreased significantly compared to the same period last year. However, it is still difficult to unequivocally say that the decline in remittances was only due to the downfall of the rouble. Most likely, a high degree of uncertainty plays a big role here, affecting the decisions of labor migrants to send money or not,” he said, but did not give specific figures.

According to him, in the medium term, the economic situation in Russia as a result of sanctions will be accompanied by structural changes in the sources of remittances and restoration of supply of foreign currency into the domestic market of Uzbekistan.

The head of the Central Bank allowed an increase in non-performing loans (NPL) due to a reduction in remittances and a decrease in household incomes.

“The degree of uncertainty in the situation with external risks is high, and the Central Bank is conducting a stress test of the financial system, based on possible expectations of its development. At the same time, the decline in the income of households due to the reduction in remittances, in turn, will certainly have a certain impact on their payment discipline on loans,” he said.

The Central Bank will take measures to prevent the growth of problem loans in the banking system in the event of negative changes in the payment discipline. Based on the current situation, the regulator recommends that banks, if necessary, apply an individual approach to each client.