BAKU, Azerbaijan, November 25
By Jeila Aliyeva - Trend:
Turkmenistan’s growth model relies heavily on large-scale public investments in infrastructure and industrial projects, Natalia Tamirisa, IMF Mission Chief for Turkmenistan told Trend.
“These projects are aimed at expanding the country’s productive capacity, facilitating technology and know-how transfer, improving connectivity, and thus, promoting Turkmenistan as a regional energy and transportation hub,” she said.
Furthermore, she clarified that most of the mentioned investments are financed by borrowing from foreign banks, bilateral lending agencies, and some multilateral institutions.
“Deepening engagement with foreign creditors tends to encourage Turkmenistan’s financial sector to upgrade its legal, regulatory, and operational standards and bring them more in line with international best practices,” she said, adding that the gradual adoption of IFRS9 by Turkmenistan’s banks is a good example in this regard.
She also said, that according to IMF’s latest projections the Turkmenistan economy is projected to grow by 4.6 percent next year.
“Looking ahead, Turkmenistan’s economic prospects will depend on progress in reforms aimed at diversifying its economy, nurturing its human talent, and raising productivity, while minimizing the scarring impact of the COVID pandemic,” concluded Tamirisa.
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