Press Release No. 10/476

Press Release: Statement by the IMF Mission to Turkmenistan

December 7, 2010

A team from the International Monetary Fund (IMF) led by Mrs. Veronica Bacalu visited Ashgabat during December 1−7, 2010. The mission met with the Turkmen authorities to take stock of recent economic developments and ongoing reforms, update the outlook for the next year and over the medium term, and discuss ways to enhance further cooperation between Turkmenistan and the IMF. In collaboration with the Central Bank of Turkmenistan, the team organized a presentation for government officials and commercial banks on the global and regional economic outlook.

At the conclusion of the mission, Mrs. Bacalu issued the following statement:

“The mission welcomes the continued progress in the implementation of the comprehensive reform agenda by the Turkmen authorities aimed at economic diversification and private sector development. Continued reforms in monetary, foreign exchange, financial, and fiscal areas are contributing to the robust performance of the Turkmen economy. Budget execution continues to be strong and public investment together with foreign direct investment, remain the main drivers of real GDP growth.

“A stable exchange rate, increased access to foreign exchange, and a more liberal trade regime are helping build trust in the national currency and increase the role of banks. The ongoing recapitalization of commercial banks and implementation of international financial reporting standards in the banking system are further strengthening financial sector.

“The economic outlook is favorable. As global demand recovers and hydrocarbon export volumes increase, the Turkmen economy is projected to grow steadily in 2011 and beyond. Growth will also be supported by on-going investment projects to develop the nonhydrocarbon economy, including infrastructure and social programs. In this regard, the mission welcomes the increase in budget spending on education and healthcare envisaged in the recently adopted 2011 budget, as well as measures to strengthen public finance management and enhance business environment for small and medium enterprises.

“Continuation of macroeconomic reforms will be important for further diversification and strengthening of the economy for the benefit of the Turkmen people.

“The IMF stands ready to continue the constructive dialog with the Turkmen authorities and supports their efforts to improve macroeconomic management, reform the financial sector, and expand private sector activity to achieve long-run sustainable growth.”