BAKU, Azerbaijan, August 4
By Klavdiya Romakayeva - Trend:
Uzbekistan’s Xalq banki (People’s Bank) and Mikrokreditbank JSCB suspended the issuance of commercial loans to the population due to the increase in the share of problem loans, Trend reports with reference to press service of People’s Bank.
According to the information, this restriction did not apply to concessional loans provided under government programs. It is noted that loans in this direction are issued at the expense of funds returned to branches that do not have many problem loans.
"In the coming days, the allocation of loans will be resumed at the expense of the returned funds," People’s Bank said.
According to statistics of the Central Bank, as of July 1, the share of problem loans in People’s Bank portfolio amounts to 15 percent (3.2 out of 21.3 trillion soums / $4.4 billion), which is the second indicator among banks with a state share after Uzagroexportbank (62.6 percent). Although at the beginning of June, the share of People’s Bank was at the level of 6 percent (1.26 out of 20.9 trillion soums / $2 billion).
In addition, commercial lending has been temporarily suspended for a similar reason at Mikrokreditbank JSCB.
It is noted that there will also be no restrictions on the issuance of concessional loans provided under state programs.
“In the coming days, loans will be issued at the expense of the repaid funds. It is necessary for borrowers to pay debts on time,” Mikrokreditbank JSCB said.
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