Turkmenistan SME Financing Programme

Location:

Turkmenistan

Project number:

39416

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

29 Jul 2009

Status:

Complete

PSD disclosed:

20 Mar 2009

Project Description

The EBRD is considering credit lines to Joint Stock Commercial Bank Senagat (SB) and State Commercial Bank Turkmenbashy (TB) to support the development of the financial sector in Turkmenistan with the objective to strengthen its ability to provide commercially oriented financing to local private small and medium-sized enterprises (SMEs), which are operating in difficult environments and are deprived of long-term foreign currency funding. The amount of credit lines will be USD 2 million for SB and USD 3 million for TB.

Transition Impact

The project will encourage the participating banks to focus on SMEs whose financial demands are not fully met in current market conditions in the country and will also enhance the capacity of the banks to service SME clients. The financial sector in Turkmenistan is characterised by extremely low financial intermediation for the private sector, especially for SMEs.

Through the accompanying Technical Assistance programme the project will also help the participating banks to establish and implement sustainable SME lending practices based on commercial principles, thus contributing to improved credit skills and operating efficiency of these banks in their lending to local private SMEs.

The Client

Joint Stock Commercial Bank Senagat (SB) is the only bank in Turkmenistan with majority private ownership through a large number of private shareholders, mainly private entrepreneurs and SMEs. The bank focuses on private companies, especially SMEs, and individuals and its overall strategy is to retain its leading position as a SME bank in the country.
State Commercial Bank Turkmenbashy (TB) is one of 5 large state owned banks and its main function is to finance industry and infrastructure projects under the government programme. In addition to this public sector role, the bank is also active in servicing private companies, individuals and joint venture companies and is one of the largest lenders to local private SMEs.

EBRD Finance

Senior loans to SB in the amount of USD 2 million and to TB in the amount of USD 3 million.

Project Cost

USD 5 million.

Environmental Impact

The participating banks will be required to comply with EBRD’s Environmental Procedures for Small and Micro Loans, including ensuring compliance with the applicable national environmental, health, safety and labour standards and regulations, adherence with EBRD’s Environmental Exclusion and Referral Lists and submission of annual environmental reports to the Bank.

Technical Cooperation

The project will be supported by the Credit Advisor programme which will provide advisory and training services to the participating banks to ensure the quality of the sub-loans and establish sustainable SME lending practices. In addition, it will also contribute to the improvement of technical skills of the local banking community by providing training to staffs from other commercial banks and trainers from the local banking colleges.

Company Contact

Kiyoshi Nishimura, Senior Banker, Financial Institutions Team, EBRD
One Exchange Square, London EC2A 2JN
Tel: +44(0)207 338 7409
Fax: +44(0)207 338 6119
Email: nishimuk@ebrd.com

 

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

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