EBRD supports private sector in Turkmenistan

Business Materials 20 December 2011 14:01 (UTC +04:00)

Turkmenistan, Ashgabat, Dec. 20 / Trend H. Hasanov /

Turkmenistan is managing to successfully finance the private sector by a credit line opened by the European Bank for Reconstruction and Development (EBRD). The bank's main objective is to finance the industrial and service sectors.

'Thus, the Senagat Joint-Stock Commercial Bank financed projects worth several million dollars through the EBRD," a spokesperson for Senagat said.

According to President Berdimuhamedov's resolution on the 'Financing of private entrepreneurship', the regulation on lending by private companies and entrepreneurs authorised by banks was developed in the country.

This created favourable conditions to support private enterprise and individual entrepreneurs.
"Previously the private sector developed only the retail sector, catering and crafts," the article said. "But its remit has increased significantly. The range of high quality goods produced by the private sector begins from food, textiles to building materials."

Frms producing building materials, confectionery, sausages, dairy products, eggs, as well as furniture and glass products were built on the basis of concessional lending. Equipment for the various services was purchased.

According to the programme of the banking system until 2030, long-term concessional lending will continue in the future by financing private enterprise and individual entrepreneur projects.

According to the programme on long-term socio-economic development till 2020, this will increase the share of the non-state sector of the economy in GDP terms up to 70 per cent.