The State Bank for Foreign Economic Affairs of Turkmenistan announced a competition for obtaining a foreign currency financing of export-oriented private sector projects at the expense of the International Islamic Trade Finance Corporation (ITFC).
The loans can be used to purchase raw materials for the production of finished products intended for export from Turkmenistan.
Mandatory competition conditions state that raw materials should be purchased from the producers or their official dealers. The companies will also have to reimburse legal and other costs of the bank associated with the provision of financing.
Among the main conditions of the competition are:
- Financing period – 2 years from the date of each use of funds;
- ITFC trade margin - 4.15% per annum;
- margin of State Bank for Foreign Economic Affairs of Turkmenistan – up to 2% per annum;
- maximum amount – $5,000,000;
- repayment in a lump sum at the end of the financing period or according to the schedule (the first payment in 360 days from the date of use).
To participate in the competition it is necessary to submit a completed application for funding, a business plan, financial statements, information about work experience, and possible other necessary documents.
In December last year, the ITFC of the Islamic Development Bank (IsDB) signed a $150 million framework agreement with the Government of Turkmenistan. The agreement covers bilateral cooperation in the areas of trade financing for the import of essential commodities and supporting agriculture and textile sectors of Turkmenistan.