Alijon Salimzoda, Head of Amonatbonk (Tajikistan’s savings bank) told reporters in Dushanbe on August 2 that Amonatbonk’s loan portfolio has stood at 2.4 billion somonis (more than 226 million US dollars) as of July 1, 2024.
According to him, the bank’s total loan portfolio has risen 21 percent over the first six months of this year.
“Amonatbonk’s non-performing loans (NPLs) ratio is 10 percent,” Amonatbonk top manager said, noting that over the same six- month period, NPLs have been recovered in the amount of 58 million somonis (5.5 million US dollars).
“The volume of such loans is decreasing every day,” Salimzoda added.
A non-performing loan (NPL) is a bank loan that is subject to late repayment or is unlikely to be repaid by the borrower in full. Non-performing loans represent a major challenge for the banking sector, as they reduce profitability. They are often claimed to prevent banks from lending more to businesses and consumers, which in turn slows economic growth, although this theory is disputed.
Many loans become non-performing after being in default for 90 days, but this can depend on the contract terms.
Amonatbonk is the only state-owned bank in Tajikistan. Established in 1925, it is one of the oldest banks in the country and one of the largest based upon various criteria – including the number of branches and the number of served clients.
The institution is unique in its orientation towards implementing social, pension and other state programs. Amonatbonk has 5 regional centers, 69 branches and more than 500 agencies. This gives the institution a presence in the most remote mountainous parts of the country.
