Loan portfolio of banks in Kyrgyzstan grows thanks to loans in soms
The loan portfolio of commercial banks continued to grow in the third quarter of 2022 thanks to an increase in loans in the national currency. The National Bank of Kyrgyzstan provided such data.
In September, loans in the national currency increased by 14.4 percent since December 2021. Consumer loans and agriculture showed strong lending rates in main sectors, while trade loans grew at a relatively low pace.
The loan portfolio in foreign currency continued to decrease and reduced by 12.5 percent since the beginning of the year.
As a result, dollarization of the loan portfolio continued to renew its lows and reached 22.9 percent in September. Compared to December last year, it decreased by 5.1 percent.
Interest rates of the loan portfolio in the national currency rose in January-September of this year against the backdrop of tightening monetary policy. Rates on loans in soms amounted to 17.1 percent in September, having increased by 0.8 percent since the beginning of the year. Rates in foreign currency amounted to 8.5 percent, having decreased by 0.4 percent.
The share of overdue loans in the loan portfolio increased by 0.2 percent since the beginning of the year, amounting to 2.7 percent. The share of extended loans in relation to the loan portfolio was lower than in 2021, but still remains at a high level. The value of the indicator reached 9.7 percent in September 2022, down 2.3 percent since the last December.
