Annual report 2006
On behalf of the Administrative Board and the Board of Directors I am bringing to your notice the Annual report on the activity of the State Bank for Foreign Economic Affairs of Turkmenistan for 2006 financial year.
On December 21, 2006 the entire Turkmen nation was overtaken by bereavement - a man, whose name is closely connected with the Turkmen State System rebirth, deceased. Saparmurat Turkmenbashy the Great, First President of Turkmenistan, has managed the country within 21 years and become the state independence and sovereignty creator. The national leader has joined the nation, has not admitted public conflicts and negative processes to take place; he equally respected representatives of all nations and nationalities residing in Turkmenistan. The population welfare has significantly increased within period of his presidency.
Turkmenistan nation would steadily go along its First President political way, Turkmenistan internal and foreign policy, based on the peace-loving, humanism, neutrality and justice principles, would keep steadfast. Turkmenistan would strictly follow a neutrality policy, which is founded on good-neighbourly relations, mutual respect, equal right and mutually beneficial collaboration with all the world countries, would fulfill its international obligations in accordance with UNO Charter, bilateral and multilateral international treaties, agreements, conventions with Turkmenistan being a country-member thereof.
In 2006 Turkmenistan has celebrated its 15th Independence Anniversary. Thanks to the policy of Saparmurat Turkmenbashy the Great, President of Turkmenistan, being held in the sphere of Turkmenistan social-economic development within independence period, a powerful industrial potential has been founded, a problem of food independence has been settled, an up-to-date agricultural complex logistical base has been provided for. Thanks to the foregoing factors Turkmenistan has been transformed into a dynamically developing strong power with a high rate of social-economic development due to the world standards, providing top population-living values.
Despite somewhat reducing its assets caused by successful completing of some large-scale investment projects, the previous year results demonstrated that Turkmenvnesheconombank went on taking top positions in the banking system regarding equity volumes (47,02%), volumes of investments into economy (71%), amounts and scopes of services being rendered to the Bank clients, due to amounts and number of operations being exercised at the currency and money markets.
The Bank operational progress has been confirmed by "The Banker" journal for the fifth time since 2001 till 2004 and in 2006, conferring the bank with "The Bank of the Year in Turkmenistan" yearly award. The present fact proves a high level of the Bank in Turkmenistan bank system, its efficiency and reliability, the Bank staff competence and solidarity.
The Bank would strive for keeping and strengthening its top positions in Turkmenistan bank sector within 2007, as well as within previous years. It would further promote consolidating economic power of Neutral Independent Turkmenistan and increasing the Turkmen nation welfare.
In conclusion I would like to note that the Bank considers development of partnership relations as a basic way to arrange effective cooperation with its clients, striving in every possible way to promote progress thereof. We are grateful to our partners and investors, whom we have been fruitfully and mutually cooperating with for many years. We appreciate their trust and loyalty to the Bank and highly esteem each of them.
I would like to thank all the staff of Turkmenvnesheconombank for its duties being bona fide and professionally executed and successful work done within 2006.
Sincerely yours,
Chairman of the Board
G.B. Geoklenov.
Turkmenistan social-economic policy, being implemented by Turkmenistan Government and aimed to transform Turkmenistan into a dynamically developing strong power, with a high world level of the country social-economic and population life development, has provided a regular sustainable growth of Turkmenistan economy. Based on the data of Turkmenistan National Institute of State Statistics & Information Turkmenistan GDP comprised TMM 154,15 trillion for 2006, demonstrating a 22,1%-growth against 2005. Meanwhile, an industrial production, agriculture, construction, transport and communication, trade and services growth comprised 24,5%, 21,9%, 25,4%, 27,0%, 24,0% and 16,2%, respectively.
A cost increase for the basic goods of Turkmen export, as well as some increase of their volumes, promoted a 16,7% foreign trade turnover development against 2005 indexes and comprised USD 10 milliard and 14 million. Export comprised USD 6 milliard 724 million, having increased at 36,1% against the last year. Import of goods and services to Turkmenistan has reduced at 9,6%, comprising USD 3 milliard 290 million.
An active net of Turkmenistan trade balance has risen up to USD 434 million for 2006. A sustainable currency inflow to the country allows providing timely repayment and servicing foreign borrowings, thus, promoting a debt load decrease and contribution upgrowth in the national economy development by means of its own funds.
The results of 2006 demonstrate that a volume of investments, which have been intended developing the country industrial and social-economic spheres comprised TMM 20 trillion 830 milliard, being increased at 6% against 2005. Meanwhile, the basic sources were as follows: equity of enterprises, direct foreign investments, centralized and local budget funds and population deposits.
Turkmenistan State budget for 2006 has been implemented with a proficit. A task being set for the State budget income and expenditure parts has been fulfilled at 122,8% and 92,4%, respectively. A priority tenor of Turkmenistan budget policy was to finance the country social development.
2006 is specific for a consumer activity upgrowth, which is proved by Turkmenistan retail commodity circulation upgrade at 23,8% against 2005. The population consumer activity upgrowth, a wide construction scope of improved design and comfortability multistorey apartment houses promoted growth of demand for consumer and mortgage loans.
The macroeconomic conditions, which have been formed within 2006, served as good suppositions to upgrade a banking sector role in Turkmenistan economy, being presented with 11 commercial banks with 121 branches and 409 agencies.
In general, the bank system assets comprised TMM 17.036,5 milliard. Loans extended to enterprises, organizations and population, which specific weight comprised 82,6%, form a basic part of assets. Loans, extended in the national currency, comprised TMM 8 654,3 milliard. Meanwhile, a national currency crediting for the non-state economic sector increased at 18,6%, which is proved by the bank system activity in developing a small and middle business in Turkmenistan.
Strengthening a payable discipline in the banking system reflected on decreasing overdue debts per loans issued by the banks. A volume of overdue debts has decreased at 52,8% within a year.
A national currency deposit base of the banks has increased at 33,7% against the previous year. Meanwhile, a general rate of entries made to deposits in the national currency has increased at 18,4% against 2005 and comprised TMM 74 241,0 milliard.
Activities for accumulating the bank equity went on in order to provide a bank system sustainable operation and to protect depositors and creditors interests. As of 2006 results the banks' equity comprised TMM 1 365,7 milliard, being increased at 8,5%. In fact, the banks' authorized capital stock being formed has increased at 6,4% and comprised TMM 673,2 milliard.
1. The Bank assets comprised TMM 5960,53 milliard.
2. The assets profitability comprised 0,66%.
3. The Authorized capital stock increased up to TMM 184 milliard.
4. The capital profitability comprised 14,44%.
5. A rate of consolidated equity increased at 12,3% and comprised TMM 588,0 milliard.
6. The equity profitability comprised 13%.
7.
Gross assets:
- Credits issued TMM 3970,16 milliard (66,6%)
- Other assets TMM (1051,71 milliard (17,6%)
- Bank deposits TMM 831,57 milliard (14,0%)
- Fixed assets TMM 30,87 milliard (0,5%)
- Monetary funds TMM 76,23 milliard (1,3%)
Working assets' set-up:
- Loans issued to corporative clients TMM 3962,15 milliard (81,8%)
- Interbank loans & deposits TMM 831,57 milliard (17,16%)
- Others TMM 36,13 milliard (0,75%)
- Loans to private clients TMM 8,01 milliard (0,17%)
- Contributions to securities TMM 5,67 milliard (0,12%)
Liabilites' set-up:
- Credits obtained TMM 3841,37 milliard (64,45%)
- Others TMM 900,2 milliard (15,1%)
- Client funds TMM 630,91 milliard (10,6%)
- Equity TMM 588,04 milliard (9,87%)
8. The Bank has earned TMM 328,5 milliard within 2006, which is 8,2% higher against the previous year. Almost 90% of revenue total volume has resulted from operations with Turkmenistan residents. Profits re The Bank has earned TMM 328,5 milliard within 2006, which is 8,2% higher against the previous year. Almost 90% of revenue total volume has resulted from operations with Turkmenistan residents. Profits resulted from operations in a foreign currency comprised TMM 237,6 milliard against the Bank profit total amount.
Attracted funds' set-up:
- Interbank credits & deposits TMM 3841,37 milliard (86,6%)
- Corporative client funds TMM 586,6 milliard (13,0%)
- Others TMM 66,13 milliard (1,46%)
- Private client funds TMM 44,31 milliard (0,98%)
9. The supply amounted to TMM 249,5 milliard and increased at 17,6% against the previous year. The Bank operational nature as of Turkmenistan Government agent to attract and to serve foreign investments is governed by 64,2% (against total liability volume) being involved in operations with non-residents of Turkmenistan.
Bank profit set-up:
- Interest income TMM 221,73 milliard (67,5%)
- Others TMM 77,93 milliard (23,7%)
- Commission charge income TMM 28,84 milliard (8,8%)
Bank expense set-up:
- Interest expense TMM 169,36 milliard (67,9%)
- Other expense TMM 75,78 milliard (30,4%)
- Commission charge expense TMM 4,36 milliard (1,7%)
10. A balance sheet profit comprised TMM 79,0 milliard.
11. A loan portfolio amounted to TMM 3970,2 milliard. The overdue specific weight comprised 0,87% in the Bank loan portfolio.
12. As of the end of 2006 the Bank served 900 legal entities, which yearly turnovers on their accounts comprised TMM 7311,3 milliard, and 22180 physical entities with account turnovers amounting to TMM 318,1 milliard.
Acting as the Agent of the Government of Turkmenistan at the international financial markets has been a key direction of the State Bank for Foreign Economic Affairs of Turkmenistan within 15 years.
Within 2006 the Bank basic objectives within frameworks of the agent activities were as follows:
To provide adjustment, proper records and timely assignments for the state foreign obligations, which have been formed both by the Bank itself and various ministries and institutions. Actively participating in working out and reconciling conditions and schemes to repay foreign borrowings, the Bank has exercised all the planned repayments, and made some prepayments in favor of foreign creditors. It allowed to increase a state solvency and to optimize interest costs for future repayments.
As of the year results, total payments in favor of foreign creditors comprised TMM 212,34 million, covering USD 177,25 million to repay a principal debt, and USD 35,09 million for interest payments. A total volume of foreign borrowings being accounted at the balance sheet of the State Bank for Foreign Economic Affairs of Turkmenistan amounted to USD 708,53 million, which looks like as follows per countries and currencies:
Per countries
- Japan - 44,7%
- Germany - 39,1%
- France - 6,5%
- China - 6,4%
- Turkey - 1,3%
- Saudi Arabia - 1,2%
- Malaysia - 0,6%
- India - 0,2%
Per currencies
- Japanese yen - 44,7%
- EUR - 36,9%
- USD - 10,8%
- Chinese Yuan - 6,4%
- Special drawing rights (SDR) - 1,2%
To activate operations attracting foreign investments into Turkmenistan economy by means of long-term borrowings was considered to be another task, being of no less importance, stated for the Bank within frameworks of its agent activities. In order to achieve task specified the State Bank for Foreign Economic affairs of Turkmenistan has made some business appointments within 2006 with its partners from the Chinese People's Republic and the Bank signed various agreements with Chinese banks, including as follows:
- General Agreement with Eximbank (China) as of USD 300 mln on providing preference long-term credits to finance Turkmenistan Ministry of Power Engineering & Industry project constructing a complex of new and reconstructing existing production units at "Maryazot" IA, as well as Turkmenistan Ministry of Construction & Building Material Industry project constructing a Gall Plant in Ashgabat.
- Agreement with Eximbank on providing a preference long-term loan as of CY 200 mln to finance Turkmenistan Ministry of Communication project modernizing communication networks.
- Agreement with Eximbank on providing a preference long-term loan as of CY 200 mln to finance Turkmenistan Ministry of Oil & Gas Industry project purchasing and supplying drilling equipment, lifting devices, as well as designing and constructing a unit to cool and soften water at head structures of Dovletabad-3, being the biggest natural gas field.
- Agreement with China State Development Bank on providing a free grant amounting to CY 20 mln to finance purchasing a mobile inspecting system for Turkmenistan State Customs.
- Agreement with China State Development Bank on providing a free grant amounting to CY 40 mln to finance purchasing a technological and auxiliary equipment for Turkmenistan Ministry of Textile Industry for producing panne velvet.
Successful operations of the Bank within the previous year aimed to increase volumes and to elongate resource base urgency serve as a strong foundation to implement an intensive development of the Bank credit direction, being one of the strategic priorities of the State Bank for Foreign Economic Affairs of Turkmenistan, in order to support the state national program headed as "Turkmenistan economic, political and cultural development policy up to 2020". Following the present strategic priority, a volume of bank investments for 2006 into a real sector of economy comprised the amount being equal to USD 18,5 million. Meanwhile, a basic volume of Bank investments would orient to developing infrastructure, modernizing enterprises and founding new productions by applying latest technologies.
A loan portfolio, which has been founded at the end of the accountable period, comprised TMM 3,97 trillion, covering loans in foreign currency as of USD 753 mln or 98,7% against the Bank total loan portfolio. As of 2006 results the Bank loan portfolio, which has been founded by means of financing projects for the state economy sector, comprised TMM 3,94 trillion.
A branch structure of the Bank loan portfolio looks like as follows at the end of 2006:
- Oil & gas - 77,8%
- Textile industry - 6,61%
- Transport & communication - 6,02%
- Agriculture - 3,5%
- Other state enterprises - 2,8%
- Power engineering - 2,36%
- Non-state sector - 0,5%
- Physical entities - 0,17%
- Medicine - 0,13%
- Entrepreneurs - 0,03%
Within 2006 an average interest rate per loans issued in a foreign and national currencies comprised 4,3% and 6,42%, respectively.
Within 2006 a volume of overdue loans has reduced at 77,7% and comprised TMM 34 707 mln, including USD 6,3 per currency loans. The overdue debts per a principle debt and overdue interests per loans issued under the Government Guarantee, amounted to USD 3,03 mln, including USD 341,6 thous. per a principle debt.
The Bank would go on functioning as the Government Agent in 2007 and would further strengthen Turkmenistan positions within the national and economic systems and consolidate Turkmenistan image as a reliable and solvent partner.
Taking Turkmenistan growing integration into the world economy into consideration, international settlements are one of the basic priority operational tenors of Turkmenistan State Bank for Foreign Economic Affairs. Actively attracting financial resources for Turkmenistan economy top branches and representing clients' and Bank foreign economic interests abroad are basic components of international sector of Bank operations.
The Bank takes one of top positions servicing Turkmenistan foreign trade. Its membership in Society for Worldwide Interbank Financial Transactions (SWIFT), correspondent relations with a lot of foreign banks is the Bank major advantage in the sphere of foreign trade settlements. The Bank makes export and import international settlements by means of Letters of Credits, collection and bank guarantees.
Within 2006 the Bank has operated with Letters of Credit, issued both by means of clients' own funds and credit facilities issued by the foreign banks and international financial institutions, and by the Bank own recourses as well. International settlements under documentary operations comprised USD 70 mln. within 2006. Moreover, the Bank has operated under guarantees issued by the foreign banks in favor of enterprises operating in the sphere of oil and gas sector, transport and communications, and public health. The Bank would go on actively holding documentary operations due to a regular interest of our clients in exercising international settlements via the Bank.
Presently, the Bank is implementing various settlement operations both in and outside Turkmenistan within the minimum possible periods, as it possesses an established correspondent network. Activities optimizing systems of correspondent accounts and searching new foreign partners, which render operative and qualitative services, are being held on a regular basis. The limits and credit lines stated allow the Bank and clients thereof to perform active conversion and trade operations at international markets. A scope of international client and interbank payments for 2006 versus the previous year has increased at 10,54% and comprised USD 4.7 mln. A scope of payments in local currency inside Turkmenistan has increased at 38,93% and comprised TMM 6.401 mlrd against 2005 results.
The State Bank for Foreign Economic Affairs of Turkmenistan is the only one among commercial banks of Turkmenistan possessing Reuters Dealing-2000 informative-trade system, which allows making deposit and conversion operations, tracing the world quotations of currencies, precious metals, prices for crude oil, cotton and other commodities. Operations may be actually held per all the basic currencies, such as USD, EUR, British pound, Swiss franc and Japanese yen. As of 2006 results a volume of conversion transactions made at the international currency market comprised USD 203 mln. A net profit, resulted from FOREX deals, amounted to USD 256 thousand.
Within 2006 the Bank went on actively allocating free currency funds into the short-term deposits in the most reliable foreign banks. Funds being allocated at those deposits comprised USD 104,3 mln at the end of the year, being increased almost twice versus the previous year. An interest profit resulted from short-tem deposits allocated in other banks comprised nearly USD 4 mln or 6,2% against total amount of profits earned. The attracted deposits have increased nearly twice and comprised USD 15 mln at the end of 2006.
Within 2006 the Bank went on actively taking part at currency auctions held at the Interbank Currency Exchange of Turkmenistan. Based on the clients' demands the Bank has purchased USD 80,2 mln by means of national currency at the Exchange auctions.
Acting as a wholesale supplier of foreign banknotes to domestic market and in order to satisfy its clients' demand in a cash foreign currency, the bank has purchased EUR 6,0 mln, USD 1,2 mln and ? 40 thousands within 2006.
Developing long-term partnership with Japan Bank for International Cooperation, Eximbanks of China, Turkey, Malaysia and USA, top export insurance companies, Islamic Bank for Reconstruction and Development, OPEC fund, etc. is one of the top priorities of the Bank.
Acting as a Bank being specialized in rendering services to the Government and corporate clients, the Bank considers rendering services to individuals to be one of its basic operational objectives too. Thus, the Bank policy priority lies in introducing new bank products, first-class servicing culture by applying the latest informative technologies and facilities while making payments, as well as working out a flexible system of tariff rates and commission charges.
Basic services being rendered to physical persons are as follows:
- To open and to operate current accounts both in the national and foreign currencies;
- To hold operations with bank cards (VISA international cards, MILLIKART and KUMUS KART own cards);
- To attract funds to deposit accounts;
- To transfer monetary funds;
- To make operations exchanging currencies;
- To extend loans for consumer purposes;
- To operate with banknotes (exchange of dilapidated notes, banknote change);
- To lease depositaries for keeping values.
Operations with plastic cards are one of the priority tenors expanding spectrum of retail services, being rendered by the Bank. Having become a full member of VISA INTERNASIONAL , international payment association, in 1994, the Bank has been issuing and servicing 3 options of VISA card for almost 12 years. They are "Business", "Classic" and "Electron". At the end of 2006 a project producing and servicing "VISA GOLD" card has been launched. A total number of "VISA" plastic cards has increased at 412 cards within a year and amounted to 1027 ones at the end of the year. USD 2118,1 thous. has been attracted to "VISA" plastic card accounts within the period under review. Moreover, the Bank served "VISA" cards issued by foreign issuing banks.
In parallel with "VISA" system card, the Bank keeps "Millicart" own payment system, which has been successfully operating and issuing its own cards in the national currency for 11 years, offering 3 types of plastic card, namely, "MILLICART", "ALTYN" and "KUMUS". The clients, acquiring "ALTYN" and "KUMUS" Millicards , with a minimum balance as of TMM 100 and 50 mln, respectively, would be given a possibility getting interests under a balance being reduced under a higher rate.
Within 2006 the Bank has started servicing "Millicart" overdraft cards. In order to further develop a card business the Bank would work improving quality and extending spectrum of services being rendered under plastic cards, making cashless transfers by means of cards and achieving compatibility of the Bank card system with Turkmenistan other banks' systems.
Presently, the latest technologies based on up-to-date instruments of software and apparatus facilities are being operated in the Bank.
An automated bank system (ABS) is presented in the sphere of software, which is based on client-server technology and applies ORACLE database management system. Introducing the present system allowed computerizing really all the Bank operational sectors, i.e. accounting settlement, credit, cash, international, trade and dealing operations, the Bank business analysis, administrative-economic costs and budget, salary/staff/warehouse/materials and not-valuable and wearing products, fixed assets; the bank ledger has been introduced. A local computer network has been installed with an automatic reservation of basic switchboards, network monitoring, data are transferred with 1 Gb/sec flow velocity. A communication with foreign systems such as Turkmenistan electronic interbank settlement system, SWIFT and plastic card system has been arranged. IBM servers with RISC-technology processors have been installed for the present system to function.
The plastic card settlement system has been introduced allowing to issue and to serve MILICART system national plastic cards. The Bank is a full member of VISA international system. A special equipment to arrange a direct communication with MILLICART authorization and settlement system has been installed in the Bank. VISA-card authorization is done by means of IP-protocol via a satellite communication system. It is planned to increase a network of cash machines and terminals in 2007 by receiving both Millicart national cards and VISA international cards as well.
An electronic document circulation system has been arranged in the Bank, allowing to keep automated records of the whole bank correspondence. A document circulation system is based on IBM Lotus Notes software.
The Bank has got its own internal telephone communication system, which is based on the latest SIEMENS telecommunication equipment. The external communications have built on optical-fiber cable, which allows providing a high level of velocity and safety.
A centralized computer system has been installed to settle the Bank physical and electronic safety. It includes a system differentiating a staff access at special premises, as well as access to the bank, a telemetric control system and fire safety system.
A multistage autonomous power system, including powerful sources of continuous power supply and diesel generator, has been installed in the Bank.
Within 2006 ABC modules have been additionally completed for atomizing new functions, correcting previous shortages, taking system consumer wishes into consideration. Some of operations used have been modified, overdraft plastic card operations have been added and reporting base has been supplemented.
The Bank is paying a specific attention to SWIFT world interbank financial telecommunications system. Presently, the present system is based on SWIFTNet software new option. It possesses a higher safety level, access differentiation and management. In 2007 it is planned to renew SWIFTNet software (second phase).
The Bank sets objectives as follows to automate the bank activities developing automated bank system in 2007:
Hardware:
- To increase ABC operating server apparatus resources;
- To work out a project on "differentiating basic servers (reserve system) from a geographic point of view";
- To extend cash machine and terminal network;
- To complete works creating the Bank internet site;
- To renew printers and computer facilities.
Software:
- To renew a card system software in compliance with world standards;
- To implement new functions and to fulfill existing remarks regarding ABC operations;
- It is planned to transfer ABC to SUBD Oracle 9i latest option;
- To launch operations for ABC step-by-step transfer into Turkmen.
Turkmenistan economy growth and its strengthening integration into the world economic relationship system, a price rising impact at the world currency, stock and raw materials markets, besides development of informative technologies, create not only new possibilities for the Bank further evolution, but present new, greater demands to its operations, especially in risk management. Within a year the Bank went on improving its risk control, monitoring and management system by introducing new risk appraisal and analysis system, by stating limits as well.
Within frameworks of its policy in the sphere of risk management the Bank strived for its balance sheet assets and liabilities structure equilibration per periods and currencies, providing a high diversification level per branches, clients and investment amounts, supporting a liquidity sufficient rate and increasing reliability and safety of informative-technological software and operative system. Meanwhile, the Bank based on Turkmenistan Central Bank requirements, audit companies' recommendations and leading foreign financial institutions' experience, as well as on requirements of intrabank standards, regulations and procedures. The risk management system, operating in the Bank, allows performing basic economic normatives of Turkmenistan Central Bank with a reserve:
- By the end of 2006 an capital adequacy normative (H1) comprised 80,6% (min = 10%);
- A current liquidity normative (H2) = 139,3% (min = 65%);
- A general liquidity normative (H4) = 47,3% (min = 25%).
To effectively manage a prompt liquidity (min = 35%) the Bank has worked and introduced a liquidity operative analysis system, i.e. a daily monitoring of transactions made is held to state impact thereof on the Bank liquidity level.
The Bank policy in the sphere of risk management envisages task sharing to take risk limit decisions, to hold active operations and to monitor limits stated being followed thanks to joint management bodies' cooperation (Board of Directors, Credit Committee), the Bank and audit service structural subdivisions.
The audit operations are being built, considering audit as an important component of management monitoring process. The basic tenors of the Bank audit are as follows:
- To hold audit aiming to found out shortages and to discover infringements, while legalizing bank documents, and controlling authenticity of bank data;
- To hold internal complex checkups with further recommendations improving operations of individual subdivisions and upgrading efficiency thereof;
- To issue recommendations and to render consultations increasing quality of structural subdivision operations.
The bank complete independence and objectivity is considered to be one of the basic principles of its internal audit and control.
A further development of the internal audit system would be caused not only by extending the bank activities covered thereby, but by completing audit methods per banking activity various tenors, taking foreign experience, international audit instruments and audit domestic standards into consideration.
As of the 1st Turkmenbashi, a total staff of the State Bank for Foreign Economic Affairs of Turkmenistan comprised 190 persons, being increased at 1,07% within the accountable period.
The work with the staff is aimed to establishing a maximum favorable, business and creative atmosphere in the Bank with a mutual understanding, support and collaboration. That is why principle objectives of the staff policy are as follows: a regular growth of employee qualification, formation of the Bank uniform team of experts and providing possibilities for their professional potential being more completely implemented. Those tasks are to be settled by means of arranging a staff supplementary trainings and participating in training workshops both abroad and inside the Bank.
The Bank administration makes great demands to the staff professionalism and competence due to extending general scope of bank services, amending structure thereof in accordance with a demand current dynamics and introducing new technologies while operating with clients.
A special attention is paid to training the staff, who is directly involved in the bank informative technologies. Taking the Bank operative profile into consideration, a great attention is paid to developing the staff language knowledge. The Bank collaborates with the country educational institutes under a new form: the senior course students are invited for probation period in order to select the most competent and perspective specialists.
The Bank is striving for the whole staff to know and appreciate Bank objectives and to feel themselves being involved in its operational results. The bank is striving for creating conditions in order all the staff members to be satisfied with their own operations. Both a fair evaluation and salary, as well as a system providing social privileges and possibilities for training and professional upgrade promote the staff successful self-realization and strengthening loyalty thereof.
Keeping top positions in the national bank system, the Bank principle objectives for 2007 would be as follows: to strengthen leading positions at the bank markets servicing corporative clients and population, to fulfill functions of Turkmenistan Government agent by attracting foreign investments into economy and servicing external obligations, to arrange borrowings for state large-scale projects functioning jointly with foreign bank partners, to intensify documentary operations and operations at currency financial markets, to extend the bank corporative client bases, to render assistance to the economy private sector, etc.
The Bank considers working out and implementing a distinct client policy, taking demands of various clients into consideration, development of conditions and upgrading quality while rendering services to clients and extending spectrum of products and services supplied, to be basic instruments to achieve present objectives. Particularly, it is supposed to raise the Bank informative transparency by modernizing a software and hardware base, as well as by applying internet site for greatly meeting client informative demands related to the bank products and tariffs.
While operating with corporative clients, the Bank would strive for developing collaboration with all the categories of the present segment, considering a possibility to attract and to allocate significant resources, to service great monetary funds and high profitability of similar operations. The Bank sets a task to keep and to secure a long-term collaboration with providing a complete scope of banking products and services, to finance private domestic companies by means of crediting and respectively implementing a wide spectrum of commission charges.
Within a regular growth of solvent demand and dynamic development of small and middle business the Bank considers collaboration with clients involved in small and middle business to be a perspective operational tenor and would activate operations with those client segments. Therefore, the Bank plans to improve a system of rendering complex service to small and middle business clients on the basis of offering a total spectrum of bank products and services, increasing service being rendered faster and developing technologies while holding operations. It is also planned to simplify service conditions for clients, who has got a positive credit experience, in the sphere of short-term and overdraft crediting and providing guarantees and Letters of Credit.
Considering private client funds, as one of the important sources to finance active operations, and perspective high rates of the bank credits for physical entities and population deposits, as well as a private client demand growth to quality and technology standards, the Bank considers upgrading quality of bank services, increasing a bank share at the market of retail services being rendered to population by issuing retail credits, further developing plastic card system, forming service package on both standard and individual basis, to be its basic objective.
Those tenors' successful development within the next year would allow the Bank strengthening its positions both at internal market of bank services, and by extending its presence at international markets, as well as promoting trust and reliability growth.
The Bank would actively go on participating in social-economic programs. In order to implement the national Program improving Ashgabat architectural and municipal engineering aspect, the Bank would build 5 dwellings of higher comfortability and improved design with 177 apartments, covering 60% to be sold to the Bank staff on preference conditions. The bank would also take part in sharing participation while constructing a kindergarten in Ashgabat for 160 places and health center on the Caspian coast.
While implementing "Green belt" program, the Bank has planted 45 thousand of conifers at the Kopetdag foothills within 2006. In general, 285 thousand of young plants have been planted at the territory amounting to 414,36 ha within the whole period of the Program implementation period.
In future the Bank would actively participate in financing and implementing large-scale social-economic programs intended strengthening economic power of Neutral and Independent Turkmenistan and the whole Turkmen nation welfare growth.
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