US$ 1 million will help fast-growing private bank promote cross-border trade
The EBRD is boosting support for cross-border trade in Turkmenistan with its first regional trade finance facility for a private bank in the country.
Rysgal Bank will receive an uncommitted multi-currency trade finance facility of up to US$ 1 million under the EBRD’s Trade Facilitation Programme (TFP).
Rysgal Bank is a small but dynamically growing bank in Turkmenistan where the banking sector is dominated by state-owned banks. It focuses on supporting private enterprises in the country.
The trade finance facility will be used to issue trade finance guarantees to foreign commercial banks. This will make it easier for Rysgal’s corporate clients to export and import goods and also to distribute foreign goods locally. The guarantees cover transactions in a range of foreign currencies.
Rysgal Bank will also benefit from training under the EBRD’s Trade Finance e-Learning Programme plus face-to-face seminars on trade facilitation products and factoring, as well as fraud protection and risk management.
Rudolf Putz, Head of the Trade Facilitation Programme said: “The signing of Rysgal Bank represents an important next step in developing our support for banks in Turkmenistan. I am both excited and encouraged to see this milestone reached and look forward to working with Rysgal Bank in the coming years.”
The programme was developed to promote and facilitate international trade to, from and within central and eastern Europe, Central Asia and the southern and eastern Mediterranean (SEMED) region. Under the TFP, guarantees are provided to international commercial banks thereby covering the political and commercial payment risk of transactions undertaken by participating banks in the EBRD’s countries of operations.