Entrepreneurs to get large preferential loans in Turkmenistan

Finance Materials 2 February 2022 16:24 (UTC +04:00)
Entrepreneurs to get large preferential loans in Turkmenistan

BAKU, Azerbaijan, February 2

By Amina Nazarli - Trend:

Turkmen entrepreneurs will be able to receive preferential loans of up to 500 times the minimum monthly salary in Turkmenistan, which is 1,050 Turkmen manats ($288), Trend reports citing Turkmenportal.

This follows from the procedure for issuing loans by state credit institutions of Turkmenistan to physical persons - individual entrepreneurs engaged in entrepreneurial activities without the establishment of legal entity, which was published on the portal of the Justice Ministry of Turkmenistan.

Financial assistance is provided at a rate of 5 percent per year. The debt must be repaid within 7 years, with a 2-year grace period for principal repayment.

According to the Procedure, a private entrepreneur is an individual who engages in entrepreneurial activities without forming a legal entity and belongs to small and medium-sized businesses, in accordance with Turkmenistan's Civil Code and the Law on Entrepreneurship.

Loans to individual entrepreneurs in accordance with the Procedure are provided for the purposes of development of industrial production, expansion of existing industries, production of articles of folk applied art, acquisition of industrial premises, performance of services and financing of projects related to the development of livestock and poultry farming, production, storage, processing of agricultural products.

Loans in national currency are provided for settlements with residents of Turkmenistan while loans in foreign currency are provided for settlements with non-residents of Turkmenistan (unless otherwise provided by the law of Turkmenistan).