Over the first three months of this year, Tajik banks’ non-performing loan (NPL) volume has reportedly decreases by nearly 100 million somoni.
As of April 1 2018, a total volume of non-performing loans of Tajik banks and microfinance organizations amounts to 1.878.9 billion, according to the Agency for Statistics under the President of Tajikistan.
Some 30 percent of the non-performing loans had been provided in the national currency, the somoni, and more than 70 percent of the non-performing loans had been provided in foreign currency.
A total volume of NPLs provided in the national currency reportedly amounts to 556.7 million somoni and a total volume of NPLs provided in foreign currency amounts to 1.321.8 billion somoni.
According to the preliminary data from the National Bank of Tajikistan (NBT), a total volume of loans provided by banks and microfinance organizations by April 1 has amounted to 8.205 billion somoni.
Thus, the share of NPLs in the country’s loan portfolio amounts to some 23 percent.
Some Tajik banks have failed to pay out savings to their customers for already three years, first of all, because they cannot get provided loans back. Specifically, Agroinvestbonk and Tojiksodirotbonk (TSB) have faced such problems.
A non-performing loan (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 (IMF), “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.”
