**Banks of Uzbekistan reduced the volume of overdue loans by 381 billion sums**

Last month, banks in Uzbekistan announced a decrease in the volume of problem loans. They reduced the amount by 381 billion sums. At the same time, analysts predicted that the volume of such loans on the contrary will increase, as there was a decrease in cross-border transfers in the market.

Now the share of overdue loans in financial institutions in the country is 4.9% of their total loan portfolio. As a result of last month’s success, local banks managed to reduce the problem sector by 0.4%. According to the Central Bank of Uzbekistan, the total volume of problem loans is 16.8 trillion sums. At the same time, loans for a month increased by 4% – from 327 trillion sums to a little over 340 trillion sums.

The biggest problem with overdue loans is observed in Halyk Bank. Their amount is 3.52 trillion sums. However, the financial institution is the first to reduce the number of overdue loans – the arrears decreased by 195 billion sums in a month. Asia Alliance Bank also recorded a good pace, it was able to reduce the volume of problem loans by 113 billion sums, so their total amount decreased from 13% to almost 7%.

Ipoteka-bank showed an increase in the share of overdue loans for some time, but last month this index decreased by 109 billion sums. Arrears in Alokabank decreased by 102 billion sums, which allowed a decrease in total volume by 1.5%.

The second place in the number of problem loans is held by the National Bank of Uzbekistan – its portfolio amounts to 3.35 trillion sums. This amount was reduced by 18 billion sums, and analysts hope that such dynamics will continue in the future.

However, there were also financial institutions, which, on the contrary, increased the amount of debt. There are five of them in total: Promstroybank increased the arrears by 65 billion sums and Asakabank by 33 billion sums. Turonbank increased the amount of debt by 24 billion sums and Agrobankä – by 12 billion sums.

This list also includes Uzagroexportbank, in which the sale procedure began in February, but it is still considered state-owned. Here the increase was at the level of 1.7 billion sums, but the bank’s debt portfolio is small compared to other institutions.

Hi-Tech Bank showed a good result in the reduction of bad loans by 18 billion sums. However, the problem remains serious because overdue loans occupy 92% of the bank’s portfolio.

It should be noted that the situation with problem loans in the country is exacerbated by the size of interest rates, which remain the highest since 2015.