BAKU, Azerbaijan, October 14. The EBRD sees opportunities to bring more international capital and expertise to Turkmenistan through project financing, risk-sharing and private-sector support.
The European Bank for Reconstruction and Development (EBRD) Head of Turkmenistan Eric Livny said this in an exclusive interview with Trend, responding to questions about potential financing structures for international investors and measures to expand access to finance for privately owned micro, small and medium-sized enterprises (MSMEs) in the country.
Livny said direct project financing could provide a straightforward mechanism for supporting investment.
"The most straightforward approach is direct project financing, where the Bank provides long-term loans alongside sponsors and commercial lenders. The EBRD's participation can help reduce perceived risks and provide comfort to other investors considering entry into a new market," Livny said.
According to Livny, syndicated financing could further expand the pool of private capital involved in projects by allowing commercial banks and institutional investors to participate alongside the Bank.
"We can also support projects through syndicated financing structures, whereby part of an EBRD-financed loan is subsequently shared with commercial banks and institutional investors. This allows larger volumes of private capital to participate in projects than would otherwise be possible," he said.
Livny also identified equity investments, trade-finance instruments, guarantees and risk-sharing arrangements among the tools that could be used to support investors.
"In addition, the EBRD can support investors through equity investments, trade-finance instruments, guarantees and risk-sharing arrangements where appropriate. Technical cooperation is often equally important. By helping projects meet international environmental, governance and operational standards, we can increase their attractiveness to foreign investors and facilitate access to international financing," Livny said.
Livny said the EBRD’s role would ultimately go beyond providing its own funding.
"Ultimately, our objective is not simply to provide EBRD funding but to act as a catalyst that helps attract additional international capital and expertise to the country," he said.
Turning to the private sector, Livny said improving access to finance for privately owned MSMEs is among the key objectives of the EBRD’s planned engagement with Turkmenistan’s financial sector.
"Improving access to finance for privately owned micro, small and medium-sized enterprises is one of the key objectives of our planned engagement with the financial sector," Livny said.
According to Livny, a first step could be establishing partnerships with selected local banks that have a meaningful presence in the SME segment.
"Through these partnerships, the EBRD could provide dedicated credit lines targeted at export-oriented businesses and other private enterprises with strong growth potential," he said.
Livny noted that access to finance is not always the only challenge for private companies.
"We would therefore seek to complement financing with advisory support to help companies strengthen management systems, improve productivity, obtain international certifications and prepare for expansion into export markets. Combining finance with advisory services is one of the EBRD's most effective tools for supporting SME development," Livny said.
The EBRD also sees significant scope for expanding the use of trade-finance instruments, including guarantees and letters of credit.
"We also see significant scope to expand the use of modern trade-finance instruments, including guarantees and letters of credit. These products can help businesses manage commercial risks, reduce working-capital constraints and build relationships with international suppliers and buyers," Livny said.
In the longer term, Livny said the EBRD aims to contribute to the development of a more commercially oriented financial sector.
"Our longer-term objective is to contribute to building a more commercially oriented financial sector capable of serving the evolving needs of Turkmenistan’s fast-growing private businesses," Livny said.
For reference, the European Bank for Reconstruction and Development (EBRD) has been working with Turkmenistan since 1992. Its engagement has focused on private-sector development, cooperation with financial institutions and support for private companies through financing and advisory services. The bank has also identified sectors such as transport, logistics, agribusiness, industry and commerce as areas with potential for further private-sector investment.
According to the EBRD, the bank has financed 87 projects in Turkmenistan, with cumulative investment reaching €322 million.
In July 2026, EBRD President Odile Renaud-Basso visited Turkmenistan, during which the sides signed five memorandums of understanding covering strategic cooperation for 2027-2032, the banking sector, sustainable energy, environmental protection and water resources, transport corridors, and Ashgabat’s participation in the EBRD Green Cities programme. The documents are intended to provide a framework for further cooperation.
