Tajik banks instructed to reduce interest rates on loans

9 months ago Web Desk 0

National Bank ordered credit institutions of the republic to improve the conditions for providing loans to customers.


The head of the National Bank of Tajikistan Jamshed Nurmakhmadzoda instructed the leadership of the country’s credit organizations to increase lending at the expense of available financial resources, reducing interest rates on loans.


At a meeting on Thursday with the management of banks, Nurmakhmadzoda noted the need for the availability of loans primarily for the manufacturing sector in order to contribute to the development of the country’s economy.


Also, the head of the NBT urged bank managers to reduce the volume of non-performing loans. Banks were advised to revise the culture of lending, taking into account possible risks and compliance with regulatory legal acts.


According to the NBT, the total balance of the loan portfolio in the country’s banking system at the beginning of August this year amounted to about 10 billion somoni.  Over the past year (from August 2019 to August 2020), the balance of the loan portfolio increased by 10.4% 1 or 950 million somoni.


These funds were mainly received by private commercial enterprises (2.3 billion somoni of the total balance of loans), state-owned enterprises (over 2.3 billion somoni) and individuals (2.1 billion somoni).


The weighted average interest rate on loans in the country’s banks in the national currency is 18.30%, and in foreign currency – 12.26%.


Source: Asia Plus