Minimum volumes of Turkmen state banks’ authorized capitals determined

Business Materials 22 January 2013 18:38

Turkmenistan, Ashgabat, Jan. 22 / Trend, H. Hasanov /

Turkmen President Gurbanguly Berdimuhamedov signed a decree which defines the minimum amount of authorized capital of state-owned commercial banks in the country, an official Turkmen source said on Monday.

The measures were taken to ensure economic stability and improve the authority of the Turkmen state-owned commercial banks on the international financial markets, increase the authorized capital of banks, as well as protect the interests of depositors and creditors.

The document allows Turkmen state commercial banks to transfer free funds of the basic insurance fund as part of the private equity and undistributed profit generated from net income of other funds from previous years to increase the authorized capital and constantly direct at least 50 percent of earned net income to increase the authorized capital.

The Turkmen Central Bank has been instructed to register the changes and amendments to the statutes of the Turkmen state commercial banks in accordance with this resolution.

The Turkmen Central Bank has been instructed to prepare the proposals for changing and amending national legislation and to submit to the Cabinet of Ministers together with the Ministry of Justice within a month.