Bishkek, Kyrgyzstan — The National Bank of Kyrgyzstan announced on Wednesday that overdue credits in the nation's banks have risen by 11.7 percent, reaching 85.5 million U.S. dollars by the end of August this year. This increase highlights growing concerns in the financial health of the banking sector amid economic fluctuations.

According to Namibia Press Agency, the overdue credits now represent 2.4 percent of the total credit portfolio of Kyrgyzstan's banking system. Meanwhile, the amount of classified credits—those deemed risky—has reached 422.8 million dollars, constituting 12.1 percent of the total loan portfolio. These figures underscore the challenges faced by the banking sector in managing credit risk.

The report from the National Bank also noted a significant rise in financing under Islamic principles, which increased by 11.2 percent to 79.5 million dollars. Overdue financing under these principles also saw a substantial increase, amounting to 4.7 million dollars or 1.7 percent of the total Islamic financing volume, marking a 63.6 percent increase since the start of the year.

Despite these challenges, the banking system in Kyrgyzstan reported a net profit of approximately 253 million dollars this year. Total assets in the sector have surged by 20.1 percent, reaching 8.7 billion dollars. The current banking landscape in Kyrgyzstan includes 21 commercial banks and 305 branches, with five banks operating under Islamic banking and finance principles.