The European Bank for Reconstruction and Development (EBRD) is making available US$500,000 a year to the Ashgabat branch of the National Bank of Pakistan in Turkmenistan, NBPT, to guarantee the trading operations of private businesses.
The line under the EBRD’s Trade Facilitation Programme will guarantee trade instruments issued by NBPT, such as letters of credit, guarantees, promissory notes and bills of exchange, for up to 180-day periods.
NBPT actively supports small businesses in Turkmenistan, in line with the EBRD’s strategy for the country which calls for the bank’s support the private sector. NBPT’s strategic goal is to develop its Turkmen trade finance business, thus promoting trade between Turkmenistan and the rest of the world.
The Central Asia Risk Sharing Special Fund will guarantee up to half any losses, thus limiting EBRD exposure. The parent bank of NBPT, the National Bank of Pakistan Karachi, also guarantees its branch’s performance under the facility.
The National Bank of Pakistan has branches and subsidiaries in 17 countries, including Azerbaijan, Kazakhstan, the Kyrzyz Republic and Uzbekistan. Its Turkmen branch opened in 1996.