One of the priority directions of the Bank’s activity is to provide maximum assistance to the government in implementing the private sector development strategy. The anchor of this strategy is a “State Program for Supporting Small and Medium Entrepreneurship” adopted in 2018. The main goals of the program include ensuring a high pace of socio-economic development and boosting private sector-led activity through improving its competitiveness, diversification, import-substituting, and export-orientated manufactures. These efforts require considerable investments and financial support. For effective support of the government’s private sector development initiatives and for creating favorable conditions for the development of private business, the Bank provides preferential loans to small and medium-sized enterprises engaged in producing goods. Loans are also granted to start small business projects.
During the last few years, the Bank has intensified its work to support the private sector in cooperation with international financial institutions. In this regard, the Bank signed a number of loan agreements with the “Deere Credit Inc.” company (USA), the OPEC Fund for International Development (OFID) and the Islamic Corporation for the Development of the Private Sector (ICD), namely:
- The OPEC Fund for International Development (OFID) approved a US$10 million term loan facility in favor of the State Bank for Foreign Economic Affairs of Turkmenistan enabling the Bank to support SMEs in the country. This transaction is the OFID’s first private sector transaction in Turkmenistan. The OFID facility will support SME and economic growth, in line with Sustainable Development Goal (SDG) 8 on inclusive and sustainable economic growth, full and productive employment, and decent work for all;
- On August 21, 2019, and September 10, 2021, Financing Agreements in the amounts of 10 million US dollars were signed between the Islamic Corporation for the Development of the Private Sector and the State Bank for Foreign Economic Affairs of Turkmenistan, respectively. These financing lines are intended to support small and medium businesses, increase the volume of exported products by the private sector and finance small and medium projects in Turkmenistan
- Between the “Deere Credit Inc.” company (USA) and the State Bank for Foreign Economic Affairs of Turkmenistan were signed loan agreements in the amount of 42.08 million US dollars dated July 2, 2020, in the amount of 107.91 million US dollars dated May 15, 2021, and in the amount of 42.5 million US dollars dated October 20, 2022, to finance the purchase of agricultural machinery and equipment manufactured by “John Deere Walldorf GmbH & Co.KG.” company for the needs of the private sector, individuals and legal entities entrepreneurs;
- A Memorandum of Understanding was signed on August 11, 2019 between the Asian Development Bank (ADB) and the State Bank for Foreign Economic Affairs of Turkmenistan at the sidelines of the 1st Caspian Economic Forum. This facility is a first-stage financing intended to support SMEs and finance small and medium-sized projects.