The procedure for assessing problematic loans and other assets, as well as accounting for potential losses in banks, is being updated in Uzbekistan. This document, approved by the Ministry of Justice and the Central Bank, will come into force on January 1, 2027.
The new regulation will apply to banks, including microfinance and Islamic banks.
Assets are classified into categories: 'standard,' 'substandard,' 'unsatisfactory,' 'doubtful,' and 'uncollectible.' Accordingly, reserves are formed to cover potential losses in amounts of 1, 10, 25, 50, and 100 percent.
For a loan whose repayment term has been extended or whose conditions have been softened to move to a better category, the borrower must make stable payments for 6 or 12 months.
Starting January 1, 2028, problematic assets will be assigned the status of 'no interest accrual.' Accrued but not actually received interest and other income will be accounted for in off-balance sheet accounts.
Excluding an asset from the reserve account does not mean the cancellation of the borrower's obligations; the bank retains the right to continue collecting the debt.
According to the Central Bank's data, as of July 1, 2026, problematic loans in commercial banks amounted to 22.9 trillion soms, equivalent to 3.6 percent of the total loan portfolio. At the beginning of the year, this figure was 18.1 trillion soms or 3%.
