The State Bank for Foreign Economic Affairs of Turkmenistan


Partnership for development!

 State News Agency of Turkmenistan  /   10.09.2019  

President Gurbanguly Berdimuhamedov held working session with participation of Chairman of the Central Bank M. Annadurdiyev and Board Chairman of the State Bank of Foreign Economic Affairs R. Jepbarov where key objectives of the leading credit institutions of the country and issues of financing of the Programme of social and economic development of Turkmenistan in 2019 – 202, the Concept of transit to digital economy, attraction of investments for implementation of the projects in national economy have been discussed.

First, the head of the Central Bank reported to the Head of the state about the work of the structures under his supervision.

In particular, the information about the financing of digitization of the branches and industrialization of national economy, changes of conditions in the regions of the country, strengthening of positions of national oil and gas sector in the world arena, formation of transport and logistic infrastructure has been presented.

The results of measures taken for increment of volumes of import substitutive and export oriented production, development of agro industrial complex on innovative base and social spheres like health protection and number of other major programmes and projects have been also presented.

Practical measures for improvement of activity of the structures under control were separate subject of the report. It was informed that complex of measures for provision of stability of purchasing power of national currency, sustainability and liquidity of banking sector, reliability of payment system, attraction of investments is under implemented.

At the same time, the works for improvement of level of availability and expansion of spectrum of financial services for citizens and entities of small and medium enterprises, increment of the volumes of the population’s deposits and crediting economically beneficial projects in different spheres are carried out. The information about improvement of the system of non-cash payments using new methods and advanced technologies has been presented.

Having listened to the report, the President Gurbanguly Berdimuhamedov focused on the importance of activation of works in banking sector of the country for successful transit to digital economy. Adequate response to permanently changing situation in the world economy is one of current directions of activity of profile institutuions.

It is necessary to expand the list of banking services offered to the population including through the use of Internet and mobile network capabilities. Special attention has to be paid to the crediting of the projects implemented with participation of representatives of private sector, rapidly developing small and medium enterprises of the Union of Industrialists and Entrepreneurs under the programme of industrialization and other programmes, the Head of the State highlighted, having addressed the Head of the Central Bank with number of specific assignments.

The attracted investments have to be used for financing of major projects in leading branches of national economy, first, in fuel and energy complex, digitization of the branches of national economy, agriculture, transport and communication sectors, President Gurbanguly Berdimuhamedov said.

Reduction of cash circulation and introduction of mechanisms of non-cash payments, which are based on modern banking technologies including bankcards, are among perspective directions, the Head of the State continued. In this regard, it is necessary to approach the regulation of financial operations, which are made using such instruments, with full responsibility, Turkmen leader noted, having ordered to carry out necessary work in this direction.

In his turn, the Head of the state Bank of Foreign Economic Affairs reported on the activity in the structure under his supervision, measures for strengthening of fruitful cooperation with competent international financial organizations and institutions for study of advanced practice in this sphere.

Implementation of investment projects in strategic branches of national economy as well as attraction of foreign business circles investments, which are interested in partnership with Turkmenistan, were separate subjects of the report.

Economic efficiency of joint projects, their social importance and ecological security, search for effective instruments for achievement of firm and long-term success of all participants are fundamental principles of this cooperation.

It was noted that contacts with leading financial structures of Asian Pacific countries such as Japan, the Republic of Korea, China, Singapore and other states have been significantly activated. Number of implemented projects and the ones that under realization, which have an international importance in fuel and energy sphere, transport and communication sector and other field are bright evidence of successful cooperation.

Transnational gas pipelines Turkmenistan – China and Turkmenistan – Afghanistan – Pakistan – India, which have huge social and economic significance not only for our country but for all participating countries as well, are worth special attention among these projects.

The information about the measures taken for expansion of list of services rendered through international payment systems Visa and Master Card, which supports the income of finances of the entities of national economy and improvement of payment capacity of banking sphere has also been presented.

Summing up the report, President Gurbanguly Berdimuhamedov highlighted that while implementing foreign strategy based on the principles of neutrality and making favourable investment climate in the country and all conditions for successful business, Turkmenistan gained high authority in the world arena demonstrating the willingness for long-term and fruitful cooperation with all interested parties.

Activation of strategic partnership of leading foreign investors with our state is provided by political and economic stability in the country, rich natural reserves, its export and transit capabilities as well as industrialization, digitization and steadily developed market.

The Head of Turkmenistan highlighted that solving the objectives for strengthening of economic diplomacy, we pay special attention to the expansion of international cooperation in all directions of economy and service sphere with competent financial institutions, economically developed states, world known companies that have advanced practice and innovative technologies.

The potential of these structures has to be actively used during implementation of investment projects in fuel and energy, agriculture, transport and communication section and other spheres of national and global significance.

Intensification of partnership in the sphere of inter-banking cooperation is one of important subjects, the President continued, having requested to improve legal base of international payments.

The Head of the State highlighted the implementation of digital financial technologies, improvement of efficiency of risk and capital management system, development of the system of corporate management and improvement of business processes, provision of stable development based on increment of income and profitability of bank among actual objectives in the future.

Strengthening of positions in the world banking market will allow the State Bank of Foreign Economic Affairs supporting the status of reliable crediting institution and to be attractive for potential investors.

The focus has also been made on the improvement of professional level of personnel of this sphere, training of personnel, which is able to provide rapid and qualitative development of the economy.

President Gurbanguly Berdimuhamedov highlighted that financial stability remains in Turkmenistan today, stable dynamics of growth in all sectors of national economy is observed, development of social sphere is continued and reformation of the systems of health protection and education is carried out.

The strategy of production of import substitutive products and increment of export supplies volumes, the course toward the activation of industrial branches, which are not related to hydrocarbon resources, support the protection of competiveness of the most sections of Turkmen economy and to expansion of foreign trade operations.

The Head of the State highlighted that economic strategy is oriented more to the attraction of direct investments rather than to credits and loans. Its efficiency lies in the fact that it allow making additional production demand in local market supporting the stabilization of financial and economic situation and does not lead to the growth of foreign debt. This is indicated by the amount of foreign debt of Turkmenistan.

Speaking of the importance of measures for saturation of local market, stimulation of import substitutive production facilities, Turkmen leader stated that export oriented branches supporting the implementation of huge potential of national economy are opened in industry, agriculture and service sphere.

The President also noted that the state budget of the country is made taking into consideration real situation; it provides targeted and well-considered use of finances.

Stabilization Fund, which assets are send for financing of priority investment projects reducing the impact of unfavourable external factors on certain sections of national economy, has a positive influence on economic situation in the country and provide the growth of work productivity and transfer to productive methods of management.

Reforms in budgetary, monetary and crediting sphere, the Head of the state continued, allowed achieving stable economic development and successful solution of structural and social objectives. Providing stability of national currency, the manat, flexible and rational distribution of assets in monetary format among various entities of the economy, financial system supported the enhancement of efficiency of investment processes.

Actual measures for protection of level of macroeconomic indicators, low inflation rate, stable exchange rate of manat, increment of non-cash payments were outlined among the utmost objectives.

The President of Turkmenistan has focused again on the importance of acceleration of works for transit to digital economy. For this purpose, it is necessary to approach the creation of technological platforms responsibly, the Head of the State said, having ordered to strengthen cooperation with competent financial structures.

It is necessary to form an economic environment based on innovations, to accelerate the industrialization of the country in order our state would be able to take deserved place in global market, the Head of Turkmenistan said.

It was mentioned that the Central Bank and the State Bank of Foreign Economic Affairs are the main financial institutes of the country, the locomotives for implementation of adopted programmes and projects.

In this regard, the Head of the State ordered the heads of the banks to hold timely solution of the subjects of financing of social and economic reforms, opening of facilities for production of competitive export product, additional work places, support of entrepreneurship under permanent control.

Having expressed the confidence that successful fulfilment of planned objectives is to support the enhancement of efficiency of not only the activity of banking institutes but also entire national economy, President Gurbanguly Berdimuhamedov wished success in work to the participants of the session.