Turkmenistan, Ashgabat, Dec . 25 / Trend , E.Hasanov/ Turkmen President Gurbangulu Berdimuhammedov's decree on establishment of the Stabilization Fund (SF) was an important step in forming new optimum, meeting demands of the time and national economic model, the Ministry of Finance said.
The Ministry was commissioned to supervise over the SF. It is necessary to establish such a financial tool to guarantee stable, progressive way of economy and its protection from influence of foreign factors, which is topical on the background of crisis of the world financial and economic system.
Presence of such an organization will not only favor high income of Turkmens, but also real production, which means open of new jobs through directing financial resources to national and regional investments, the Ministry said.
Remains of surplus of public budget in 2007 and 2008 were a reason of formation of money means at the Stabilization Fund. Financial assets of the state will be accumulated there in future. Generally, means will be spent to social and economic development of Turkmenistan, as transfers to realize national programs and to introduce modern technologies.
The Stabilization Fund has two main functions: saving and stabilization. The first one will be provided through collection of financial assets and their income under moderate level of risk, through investment of free money of the fund in high liquidity assets and realization of huge investment projects. Stabilization function will be provided through use of means of the fund to maintain macroeconomic stability and definite level of liquidity.
Finance of the SF will be used (bring income taking into consideration annual rate of inflation), which will positively affect maintenance of loan and monetary policy reflect and high dynamic of economic growth.
Turkmenistan's public budget for 2009 envisages transfers of definite income on regular base to the Stabilization Fund.
Turkmenistan is one of key suppliers of natural gas in the region. In Sept. 2008, new Constitution was adopted and comprised an article on shift to principles of market relations. Administrative-command style of management dominated in the Turkmen economy by this document.
In 2009 the authorities plan to hold monetary reform - denomination of national currency and black market of currency was eliminated after unification of two exchange rates six months ago. A new Law on Foreign investment meeting international standards was adopted in 2008.
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