The National Bank of Tajikistan (NBT) declares a significant reduction in a volume of non-performing loans (NPLs) in the country.
The share of NPLs in Tajikistan’s loan portfolio reportedly reduced from 23.4 percent in 20202 to 13.4 percent in 2021, according to the NBT.
As of January 1, 2022, the volume of NPLs in Tajikistan reportedly amounted to 1.6 billion somonis (equivalent to 142 million U.S. dollars).
NBT officials note that a certain work has been carried out in the country to reduce the volume of non-performing loans, increase loan offers and provide repayment of loans.
A nonperforming loan (NPL) is a loan in which the borrower is in default due to the fact that they have not made the scheduled payments for a specified period. The specified period also varies, depending on the industry and the type of loan. Generally, however, the period is 90 days or 180 days.
Top managers of Tajikistan’s regulator and the leadership of the country have considered non-performing loans to be the main reason for bankruptcy of lending agencies in the country.
Over the past seven years, the number of lending agencies in Tajikistan has decreased from 137 to 63.
