ASHGABAT, Turkmenistan, August 1. Moody's rating agency forecasts the growth of Uzbekistan's real GDP at the level of 5 percent this year, Trend reports.
According to the analytical agency, Uzbekistan's real GDP growth will remain generally stable at about 5-6 percent in 2024.
Moody's adds that this will strengthen the creditworthiness of borrowers and help banks restore the quality of their loan portfolio in the next 12-18 months.
"The strengthening of loan portfolios along with the growth of operating income will support the profitability of banks, although the profit from trading will be lower than last year. The stable outlook also reflects the strong capital reserves of Uzbek banks," Moody's noted.
The agency notes that the rapid growth of lending in state-owned banks will put pressure on both the system's liquidity reserve and capital adequacy, while dependence on market financing will remain high.
Meanwhile, Moody's adds that given that the total amount of accumulated reserves is 45 percent of GDP, and the total volume of system-wide loans at the end of 2022 will be 44 percent of GDP, the government has a strong potential to support the economy and banks.