Uzbekistan's credit activity set to increase in 3Q2020
BAKU, Azerbaijan, May 1
By Ilkin Seyfaddini – Trend:
Commercial banks in Uzbekistan have granted a total of more than 21 trillion soum (more than $2 billion) of deferrals on credit payments for enterprises experiencing financial difficulties as of April 28, Trend reports citing the Central Bank.
In addition, credit organizations were given the right not to change the classification of credit quality, the terms of which were revised in accordance with the above recommendations, and not to form additional reserves, the report says.
At the same time, the Central Bank forecasts that the volume of loans will grow within the growth rate of nominal GDP (18-22 percent). In particular, loans in the second quarter will be mainly directed to agriculture, healthcare and working capital replenishment. According to the baseline scenario, quarantine restrictions will be lifted in the second quarter of 2020, and credit activity will start to increase in the third quarter as the recovery starts.
According to preliminary estimates of the Central Bank of Uzbekistan, the volume of cross-border remittances in the country will decrease by 30-35 percent compared to last year.
Also, the Central Bank of Uzbekistan expects the country's gross domestic product (GDP) growth rate to slow down to 1.5-2.5 percent in 2020, amid coronavirus pandemic.
In addition, the basic inflation forecast by the end of 2020 has been revised downward by 1 p.p. relative to the initial estimates (12-13.5 percent) and is 11-12.5 percent.
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