Translated version of this PSD: Russian
The EBRD is continuing its support for the financial sector in Turkmenistan with a new USD 10 million Micro Small and Medium Enterprise (MSME) framework for existing and new client banks. The objectives include the introduction of a micro and small lending product to the Turkmen market, the increase of the financing of MSMEs in general, and the enhancement of the lending and risk management skills of Participating Banks.
Under this framework, International Joint Stock Bank Garagum (“GB”) will receive USD 2 million to extend MSME lending to local borrowers.
The transition impact of this project stems from increasing financial intermediation and the access of private MSMEs to finance and at the same time enhancing the skills of participating banks in lending and risk management. The transition goals are:
1. Encouraging lending to private MSMEs and market expansion. It is expected that the project will contribute to enhancing domestic demand through improved access of MSMEs to funding.
2. The Framework will contribute to improving the local banks` skills in the area of MSME financing as well as increasing the integration of the MSME business line in banks’ operational structure, and strengthening their corporate governance, risk management and internal control functions.
Commercial banks in Turkmenistan, committed to MSME lending.
International Joint Stock Bank Garagum is the first bank under this framework. GB is a bank which primarily focuses on servicing private micro, small and medium-sized enterprises. GB operates through headquarters located in Ashgabat and 4 branches, covering the main regions of the country and providing a full range of services.
USD 10 million MSME Lending Framework.
USD 10 million.
Categorised FI. All Participating Banks (PBs) under the Turkmenistan MSME Framework will be required to comply with the EBRD's Performance Requirements 2 and 9.
This involves compliance with EBRD's Environmental and Social Exclusion and Referral Lists; requiring all clients to comply with national regulations and standards on environment, health and safety, labour, social issues and public consultation; and implementation of EBRD's Environmental and Social Procedures for Small and Micro Loans as outlined in the eManual.
All new PBs will be required to complete EBRD's Human Resources Due Diligence Questionnaire and E&S Due Diligence Questionnaires and submit those for EBRD's review to establish compliance with PRs 2 and 9.
A technical cooperation programme is envisaged to assist PBs with the implementation of MSME lending schemes with emphasis, where appropriate, on product diversification as well as corporate governance and risk management improvements.
Mr. Murad Babaew
Chairman of the Board
International Joint Stock
126, Turkmenbashy Avenue
744000, Ashgabat Turkmenistan
For business opportunities or procurement, contact the client company.
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Tel: +44 20 7338 7168
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