Uzbekistan Central Bank Warns of Rising Household Debt

Tashkent, Uzbekistan (UzDaily.uz) — The Central Bank of Uzbekistan is concerned about rising household debt and borrowers’ ability to service their loans on time.

Central Bank Deputy Chairman Sanzhar Nosirov said this on 7 August during a Senate meeting, where lawmakers discussed amendments to the Law on Advertising that would require warnings about financial risks in advertisements for loans and microloans.

Senator Khusan Ermatov said Central Bank data showed that lending to individuals had increased by 21.2% over the past year, while the debt of entrepreneurs had risen by 12%. Over six years, household debt had increased more than fivefold to 231 trillion soums, he said.

Ermatov asked how effective mandatory warnings in credit product advertising could be in containing further growth in household debt and whether studies had been conducted to assess the potential impact of the measure.

Nosirov agreed that the trend was a cause for concern. At the same time, he said part of the increase in lending was linked to broader access to banking services and previously unmet demand. In the past, individuals had significantly less access to bank loans, while reforms in recent years had expanded access to financial services.

According to the Central Bank deputy chairman, the regulator is more concerned not about the increase in lending itself, but about whether individuals are able to service their accumulated obligations.

“Our main concern is not that the figures themselves are growing, but rather the increase in the debt burden — how capable the population is of servicing this debt,” Nosirov said.

He noted that the Central Bank had already introduced restrictions aimed at preventing excessive household indebtedness. In particular, a debt-service ratio is in place under which loan payments must not exceed 50% of a borrower’s monthly income.

In addition, a debt-to-income limit has been in effect since the beginning of the year. For borrowers with officially verified income, the loan amount must not exceed eight times their income, while for those with unofficial income, the limit is five times their income.

The Central Bank is also taking measures to protect consumer rights and improve financial literacy among the population.

However, Nosirov said mandatory financial risk warnings in advertising alone would not be enough to stop the increase in household debt.

“This mechanism will not directly stop the debt burden, but it will increase people’s informed awareness,” the regulator’s representative said.

According to him, the measure should help reduce the risk of consumers being misled by advertising and encourage more considered decisions when taking out loans. The Central Bank also expects the approach to contribute to the development of a responsible lending culture among households and banks.

In preparing the proposal, the regulator studied international experience. Nosirov said that in the European Union and the United Kingdom, the introduction of similar measures had been accompanied by improved debt servicing and a reduction in overdue debt without reducing activity in the credit market.

Senator Rustam Khalmuratov provided additional data during the meeting. According to him, bank loans account for 93% of household debt obligations, while the debt burden ratio stands at 78%, 18% higher than in 2024.

As of 1 February 2026, 9.3 million borrowers had outstanding loans. Their total obligations amounted to 610 trillion soums. Of 376,000 loan agreements, debt totaling 19 billion soums had moved into the category of non-performing loans.

According to a Central Bank survey conducted in July 2025, 73% of respondents said they had outstanding debts to banks or non-bank organizations. At the same time, 61% of those surveyed said they experienced some difficulties in meeting their debt obligations on time.

The average overall debt burden of individuals, according to data presented at the meeting, stood at 50%, up 16% from 2024.