As of December 1, the Central Bank of Uzbekistan has disclosed a significant monthly increase of UZS 854bn ($68.8mn) in the volume of non-performing loans (NPL) across the country. The total NPL volume has now surged to UZS 17.6 trillion ($141.8mn), with state banks contributing UZS 13.7 trillion ($110.4mn), and commercial banks accounting for UZS 3.8 trillion ($30.6mn).
State-owned banks experienced a notable rise of UZS 681bn ($54.8mn) in problematic loans compared to the previous month, while private banks saw an increase of UZS 173bn ($13.9mn) in their NPL percentage.
Within the state-owned banking sector, Uzbek National Bank and Uzpromstroybank reported the highest proportion of NPL, standing at 3.5% and 2.6%, respectively.
Among private financial institutions, Ipotekabank stands out with a significant 5.2% share of problem loans, while Kapitalbank follows with a 1.8% share. The Central Bank's report sheds light on the challenges posed by the escalating issue of non-performing loans in Uzbekistan's financial landscape.
Non-performing loans, or NPLs, are bank loans that are subject to late repayment or are unlikely to be repaid by the borrower.
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