Turkmenistan’s Stabilization Fund focuses on investment projects
ASHGABAT, Turkmenistan, Feb. 14
By Huseyn Hasanov – Trend:
The Turkmen Stabilization Fund has a positive impact on the economic situation in the country, Trend reports referring to the Neutral Turkmenistan newspaper.
Its funds are spent to finance the priority investment projects. This allows to minimize the impact of adverse external factors on certain sectors of the national economic complex and to ensure the growth of labor productivity and the transition to the innovative methods of management, said the report.
Moreover, great attention is also paid to insurance. The current norms and rules governing this sphere have been recently renewed.
The remnants of surplus funds from the state budget are accumulated in the Stabilization Fund, which was established in 2008.
The experts from the International Monetary Fund (IMF) published a report in November 2015 stating that the big resources accumulated in the Reserve Currency Fund and the Stabilization Fund will allow Turkmenistan to adapt to the current challenges and will help maintain high GDP growth rates — higher, than in other regional countries during a period of lower energy prices.
The Turkmen Institute for Strategic Planning and Economic Development stressed that the Stabilization Fund serves as a mechanism to minimize external crisis phenomena and must contribute to the sustainable growth of the country's economy.
“Turkmenistan has a low external debt rate,” Turkmen President Gurbanguly Berdimuhamedov said in September 2019. “Turkmenistan’s ongoing economic strategy is mainly designed to attract direct investments than loans.”
Among the priority tasks are the effective steps to maintain the level of macroeconomic indicators, low inflation, a stable rate of manat, an increase in non-cash payments.
In accordance with BP’s report, Turkmenistan ranks fourth in terms of natural gas reserves in the world and presently, exports it to China and Russia.