Mr. Fernando Dancoza, World Bank Chief Specialist on Financial Stability Issues, has declared for regulation of the non-performing loans, noting heavy tax burden on lending agencies in Tajikistan.
He remarked this at a roundtable on problems of tax treatment of interest on non-performing loans that took place in Dushanbe on February 26, according to the press center of the National Bank of Tajikistan (NBT).
The World Bank expert reportedly pointed to the necessity of reviewing the country’s tax policy for solution of problems existing in this sphere.
He recommended that the government make concessions to lending agencies under crisis conditions.
The roundtable participants reportedly included senior representatives of Tajik central bank and lending agencies. They discussed ways to reduce volumes of the non-performing loans.
There were proposals to set up auctions to resolve he bad loans.
As of January 1, 2019, a total volume of the non-performing loans (NPLs) in Tajikistan amounts to about 1.9 billion somoni (equivalent to more than 200 million U.S. dollars).
NPLs now account for more than 21 percent of Tajikistan’s loan portfolio.
More than 31 percent of NPLs was provided in the national currency and 69 percent of NPLs was provided in foreign currency.
The volume of NPLs in the national currency reportedly amounts to 578.1 million somoni and the volume of NPLs in foreign currency amounts to 1.276.8 billion somoni.
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.
