According to Fitch Ratings' forecast, the volume of problematic loans in Uzbekistan's banks could reach 9-10 percent of total loans in the coming year. Experts attribute this development to the continued acknowledgment of risks associated with state-owned banks.
In addition, the depreciation of retail portfolios is also expected to rise due to the "grace period" in lending. According to calculations by the Central Bank, the volume of problematic loans in banks reached 22.4 trillion soums during the past ten months.
Monthly growth stood at 5.1 percent. The majority of this volume is accounted for by financial institutions with state shares (15.8 trillion soums), while in private banks, this figure amounts to 6.6 trillion soums.
Nevertheless, Fitch Ratings expects Uzbekistan's banking sector to remain stable in 2024. Analysts believe that Tashkent will implement more targeted programs for the privatization of banks.
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