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 high pace of socio-economic development, boosting private sector-led activity through improving of 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 development of private business, the Bank provides preferential loans to small and medium sized enterprises that are engaged in production of goods. Loans are also granted to start small business projects.
During last 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 American company Deere Credit Inc, the Asian Development Bank and the Islamic Development Bank, namely:
- The OPEC Fund for International Development (OFID) approved a US$10 million term loan facility in favor of the State Bank for Foreign Economic Affairs of Turkmenistan enabling the Bank to support SMEs in the country. This transaction is the OFID’s first private sector transaction in Turkmenistan. The OFID facility will support SME and economic growth, in line with Sustainable Development Goal (SDG) 8 on inclusive and sustainable economic growth, full and productive employment and decent work for all.
- A US$ 10 million loan agreement was signed on August 21, 2019 between the Islamic Corporation for Development of the Private Sector (ICD) and the State Bank for Foreign Economic Affairs of Turkmenistan. The loan facility is intended to support small and medium-sized businesses, increase the volume of exported products by the private sector and finance small and medium-sized projects in Turkmenistan.
- A US$ 42.08 million loan agreement was signed on July 2, 2020 between the Deere Credit Inc. and the State Bank for Foreign Economic Affairs of Turkmenistan to finance the purchase of agricultural machinery and equipment from “John Deere Walldorf GmbH & Co.KG” for 107 small and medium-sized farming businesses.
- A Memorandum of Understanding was signed on August 11, 2019 with the Asian Development Bank (ADB) in an amount of US$ 50 million at the sidelines of the 1st Caspian Economic Forum. This facility is a first stage financing intended to support SMEs and financing small and medium-sized projects. The ADB’s business plan for Turkmenistan provides for financing of small and medium businesses in three stages for a total amount of US$ 150 million within 2019-2021.