A total amount of non-performing loans (NPLs) in Tajikistan’s banking system decreased to little more than 2.2 billion somoni in a year to September 30, 2017, according to the Agency for Statistics under the President for Tajikistan.
Loans provided in foreign currencies reportedly account for 72.5 percent (equal to 1.6 billion somoni) of NPLs and loan provided in the national currency account for 27.5 percent (601.6 million somoni) of NPLs.
As of November 1, 2016, a total amount of the non-performing loans in Tajikistan’s banking system was more than 27 billion somoni.
Meanwhile, a total amount of the provided loans fell 13.5 percent (1.4 billion somoni) in a year to September 30, 2017, coming to some 9.1 billion somoni.
A non-performing loan, or NPL, is a loan that is in default or close to being in default. Many loans become non-performing after being in default for 90 days, but this can depend on the contract terms. According to International Monetary Fund, “A loan is nonperforming when payments of interest and principal are past due by 90 days or more, or at least 90 days of interest payments have been capitalized, refinanced or delayed by agreement, or payments are less than 90 days overdue, but there are other good reasons to doubt that payments will be made in full.”
By bank regulatory definition, non-performing loans consist of: other real estate owned which is taken by foreclosure or a deed in lieu of foreclosure; loans that are 90 days or more past due and still accruing interest; and loans which have been placed on nonaccrual (i.e., loans for which interest is no longer accrued and posted to the income statement).
