Moody's expects high rates of economic growth in Uzbekistan to continue
Baku, Azerbaijan, Sept. 5
The international rating agency Moody's expects continuance of high rates of economic growth in Uzbekistan, the agency said in a statement.
"The high growth rates of [Uzbekistan's economy] will continue in 2018-2019 due to government spending, capital investment, as well as the restoration of remittances of migrant workers from Russia," the agency said.
In addition, despite the high level of dollarization of the banking system of Uzbekistan, the currency risks concentrated mainly in state-owned banks will remain moderate, the agency predicted.
In general, Moody's has kept unchanged a stable outlook on the banking sector in Uzbekistan.
The banking system of Uzbekistan, the agency noted, is characterized by the moderate size and dominance of state banks. It is still focused on the corporate sector in general, and especially on state companies and the largest borrowers.
At the same time, Moody's experts believe that the quality of bank assets will remain satisfactory.
"The share of problem loans will remain generally at the same level due to economic growth, declining inflation and rapid growth of lending," Moody's said in a statement.
The rating agency noted that the profitability and capital adequacy of Uzbek banks will gradually decline due to the reduction in net interest margin and rapid growth of assets.
A good level of liquidity will remain in the banking system, and the state will continue to support state-owned banks, as appears from the report of the rating agency.
The Moody's is an international rating agency. It is engaged in assigning credit ratings, research and analysis of risks. The Moody's along with Standard & Poor's and Fitch Ratings is included in the list of the "Big Three" international credit rating agencies.