Uzbekistan’s Banking Sector Faces 7% Rise in Problem Loans for 2024, Reports Moody’s
Moody’s reports that Uzbekistan’s banking sector outlook is stable in 2024, with problem loans rising to 7%. State support for large banks is expected to continue, ensuring financial stability despite fluctuations in exchange rates. The banking system remains robust, with projected GDP growth positively influencing borrower solvency.
According to Moody’s Rating Agency, Uzbekistan’s banking sector maintains a stable outlook for 2024 despite a rise in problematic loans, now accounting for 7% of the banking system. State support for significant banks is likely to continue, bolstering overall financial stability. The share of problem loans is projected to stay within the 6-7% range for the next 12-18 months, influenced by state-owned banks recognizing these assets.
In summary, despite an uptick in problem loans and existing geopolitical challenges, Uzbekistan’s banking sector remains stable, supported by state aid and robust national reserves. Moody’s forecasts suggest a continued focus on improving credit ratings and financial stability, aided by projected GDP growth. Overall, the banking system’s health is likely to remain resilient in the coming years.
Original Source: daryo.uz
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