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.