The European Bank for Reconstruction and Development (EBRD) is providing a USD 4 million loan facility to Turkmenistan for on-lending to small and medium-sized enterprises (SMEs). JSCB Senagat, which is reportedly the only Turkmen bank controlled by a private stakeholder, and the state commercial bank Turkmenbashy will each receive USD 2 million. No financial information is available for JSCB Senagat and Turkmenbashy.
The debt financing is intended to fund local companies and increase financial intermediation in an economy which is largely state-controlled. The EBRD financing is supplemented by grants of unspecified size provided by the United States, Japan and Switzerland, which will be used to help JSCB Senagat and Turkmenbashy develop their SME services and improve lending procedures.
By Jennifer Shevock, Research Associate
About European Bank for Reconstruction and Development:
The European Bank for Reconstruction and Development (EBRD) is an international finance institution headquartered in London. The bank began operations in 1991 upon the agreement of 40 countries and is now owned by 61 countries as well as the European Investment Bank and the European Union. It aims to finance operations that are both commercially viable and assist development in 29 countries in Eastern Europe and Central Asia. It does this by providing loans, debt securities, equity investments, guarantees and technical assistance to micro and small businesses as well as commercial banks and non-bank microfinance institutions. For fiscal year 2009 EBRD has operating assets of EUR 6.1 billion (USD 8 billion).
Sources and Additional Resources:
“EBRD launches small and medium enterprise financing facility in Turkmenistan” July 23, 2010. http://www.ebrd.com/pages/news/press/2010/100723b.shtml
MicroCapital Universe: European Bank for Reconstruction and Development: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Bank+for+Reconstruction+and+Development+(EBRD)
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