European Bank for Reconstruction and Development (EBRD) approved $9.5 million in loans for Turkmen companies to expand their production capacity, according to the bank’s Project Summary Documents (PSDs) issued on Tuesday.
Particularly, the bank approved a long-term loan of $8 million to the Turkmen confectionary producer Datly Şerbet Individual Enterprise, a subsidiary of the Täze Aý Önümleri Economic Society, to finance the first phase of the company's expansion.
According to the report, Datly Şerbet will invest in expansion and product range diversification to improve its competitiveness.
The EBRD said the new product range will enable the company to explore opportunities on the markets of China and Kyrgyzstan, adding that the “exports of confectionary and pastry products shall reach 20% of the total confectionary output by 2023.”
The bank will also provide a $1.5 million loan to Safa Individual Enterprise, a producer of polyethylene and polypropylene packaging in Turkmenistan, to purchase new equipment to expand its existing production capacity and to increase its market share through further import substitution.
The EBRD has invested €295 million in Turkmenistan through 75 projects since it began operations in the country. The Bank has also provided advisory support to more than 200 small and medium-sized enterprises across Turkmenistan.