Fri 01 2017 11:32:40

Tashkent, Uzbekistan ( -- Real growth rates of Uzbekistan’s GDP are expected at 6%-7% per annum in 2017-2018, S&P Global Ratings said.

S&P Global Ratings today published its “Banking Industry Country Risk Assessment: Uzbekistan”.

“We see a stable trend for Uzbekistan’s economic risk following our reassessment of economic imbalances. Despite a decline in the current account surplus to just above 0% we expect it to stabilize at that level under our base-case scenario,” the agency noted.

“The decline in GDP growth rates is likely to stop, with real growth rates of 6%-7% per annum expected in 2017-2018. While high nominal growth of credit represents a challenge in our view, we believe that it would generally be in line with the nominal growth of the economy and will not contribute to asset bubbles,” the report said.

“We assess the trend for Uzbekistan’s industry risk as stable. More advanced regulatory standards and the Central Bank’s initiatives to improve governance and tighten capital requirements are offset by the level of government intervention in the banking system, in our view. We consider that the dominance of state-related banks hampers competition,” S&P Global Ratings underlined.

“The funding profiles of Uzbek banks are largely stable, supported by the growth of government funding and corporate deposits. However, we see decreasing growth in retail deposits and deterioration in banks’ capitalization ratios due to rapid asset growth,” the agency underlined.


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