How Is SME financed in Turkmenistan?

According to Article 13 of the Law of Turkmenistan "On State Support for Small and Medium-sized Entrepreneurship," the activities of small and medium-sized business entities are financed through their own and borrowed funds, including funds from the State Budget of Turkmenistan, loans from commercial banks, mutual credit societies, credit unions, microfinance organizations, as well as from other sources not prohibited by Turkmenistan's legislation.

Commercial banks, mutual credit societies, credit unions, and microfinance organizations provide financing for the activities of small and medium-sized business entities in the manner established by the legislation of Turkmenistan.

By the decision of the Cabinet of Ministers of Turkmenistan, financial resources may be provided from the state budget for lending to the activities of small and medium-sized business entities, financing the development of entrepreneurship, granting grants for the introduction of new and environmentally friendly technologies and innovations, construction of infrastructure related to the creation of special economic, trade, and industrial zones, including for the construction of engineering infrastructure systems and facilities, participation in investment projects.

The purpose of the Law "On State Support for Small and Medium-sized Entrepreneurship" is to establish the legal framework for the state policy aimed at creating favorable conditions for the development of small and medium-sized entrepreneurship as an important element of the market economy, the successful functioning of which contributes to economic growth and social development.