Publication:
Readiness for Resolving Nonperforming Loans in Central Asia

Simple item page
dc.contributor.authorTodoroki,Emiko
dc.contributor.authorAhmad Fontan,Ismael
dc.contributor.authorDancausa,Fernando
dc.contributor.authorIavorskyi,Maksym
dc.date.accessioned2023-04-18T15:49:14Z
dc.date.available2023-04-18T15:49:14Z
dc.date.created2023-04-18
dc.date.issued2023-04-18
dc.description.abstractThe COVID-19 crisis combined with the global repercussions from the Russian invasion of Ukraine exacerbated the stress on financial systems around the world. More than 150 countries introduced policy measures to support the financial sector amid the COVID-19 pandemic. Such measures included debt moratoria, loan forbearance, and the relaxation of classification and provisioning rules, a truly unprecedented response in its scale and speed. Central Asia is no exception. Policy makers in the region introduced temporary measures to support the financial sector during the COVID-19 pandemic. But even before one crisis is contained, the region faces another crisis stemming from the repercussions of the Russian war in Ukraine. Central Asian countries have strong economic and financial ties with Russia, which have, in turn, affected trade, remittances, the subsidiary operation of Russian banks, corresponding banking relationships, payment channels, among other systems. The compounded effect of the two crises has increased the pressure on both the repayment capacity of borrowers and the financial management of banks and other creditors. This report assesses the NPL resolution framework in four Central Asian countries (Kazakhstan, the Kyrgyz Republic, Tajikistan, and Uzbekistan) and provides recommendations for improving it. Chapter 1 discusses the current trend in NPLs in Central Asia. Chapter 2 assesses how assets are classified and covered. Chapter 3 reviews the NPL reduction workout techniques practiced in Central Asia. Chapter 4 investigates supervisory measures that can be adapted to reduce NPLs. Chapter 5 reviews the role that the insolvency and creditors’ rights framework play in this process. The report concludes in chapter 6 with specific recommendations for enhancing the readiness of banks and insolvency regimes for dealing with NPLs. Table 1 summarizes these recommendations.en
dc.identifierhttp://documents.worldbank.org/curated/en/099214003132333703/P17759509d9f520a80b3b10bbc141019e37
dc.identifier.doi10.1596/39702
dc.identifier.urihttps://openknowledge.worldbank.org/handle/10986/39702
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington DC
dc.relation.ispartofseriesEquitable Growth, Finance & Institutions Insight - Finance
dc.rightsCC BY-NC 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttps://creativecommons.org/licenses/by-nc/3.0/igo/
dc.subjectFINANCIAL SYSTEMS
dc.subjectNON-PERFORMING LOAN
dc.subjectNPL
dc.subjectCOVID-19
dc.subjectWAR IN UKRAINE
dc.titleReadiness for Resolving Nonperforming Loans in Central Asiaen
dc.typeWorking Paper
dspace.entity.typePublication
okr.crossref.titleReadiness for Resolving Nonperforming Loans in Central Asia
okr.date.disclosure2023-04-18
okr.date.lastmodified2023-03-23T00:00:00Zen
okr.doctypeEconomic & Sector Work
okr.docurlhttp://documents.worldbank.org/curated/en/099214003132333703/P17759509d9f520a80b3b10bbc141019e37
okr.guid099214003132333703
okr.identifier.docmidP177595-9d9f5292-d660-49a8-b3b1-bbc141019e37
okr.identifier.doihttp://dx.doi.org/10.1596/39702
okr.identifier.externaldocumentum34020899
okr.identifier.internaldocumentum34020899
okr.identifier.report180818
okr.import.id468
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/099214003132333703/pdf/P17759509d9f520a80b3b10bbc141019e37.pdfen
okr.region.geographicalCentral Asia
okr.topicFinance and Financial Sector Development::Financial Structures
okr.topicFinance and Financial Sector Development::Finance and Development
okr.unitEFI-ECA-FCI-Finance-1 (EECF1)
Files
Original bundle
Now showing 1 - 2 of 2
Thumbnail Image
Name:
P17759509d9f520a80b3b10bbc141019e37.pdf
Size:
6.39 MB
Format:
Adobe Portable Document Format
Download
No Thumbnail Available
Name:
P17759509d9f520a80b3b10bbc141019e37.txt
Size:
117.09 KB
Format:
Plain Text
Download
License bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
license.txt
Size:
1.71 KB
Format:
Plain Text
Description:
Download
Collections
Equitable Growth, Finance & Institutions Insight