BAKU, Azerbaijan, Jan. 28
By Ilkin Seyfaddini – Trend:
Growth of loans in national currency slowed almost twofold, during 2019 in Uzbekistan, Trend reports via the country's Central Bank.
Following the results of 2019, crediting of economy grew by 73.8 trillion soums ($7.7 billion) or 54.8 percent. The main sources of credit investments were centralized funds, active development of foreign credit lines by banks, as well as funds from placement of sovereign and corporate eurobonds.
By the end of 2019, annual growth rates of loans in national currency for physical persons and legal entities decreased to 63.5 percent and 28.6 percent respectively. At the same time, growth rates of loans in foreign currency remained more or less stable, at 45.7 percent in 2018 and 42.6 percent in 2019.
The analysis of the structure of loans in foreign currency shows that the private sector's propensity to finance investment projects at the expense of foreign currency loans is mainly explained by relatively high rates of loans in national currency.
Legal entities were granted credits worth $6.2 billion in 2019.
"If there are significant differences in external and internal monetary conditions, effective implementation of appropriate monetary policy is difficult, mainly due to the growing attractiveness of external funding sources," the Central Bank said.
According to the regulator, this situation indicates an increasing need to coordinate efforts in the field of monetary and macroprudential policy. In this regard, the Central Bank is moving to actively apply approaches for macroprudential support of decisions in the field of monetary policy.