ASHGABAT (TCA) — The European Bank for Reconstruction and Development (EBRD) is deepening its support for the private sector in Turkmenistan by arranging a US $1 million loan for Intizar Yurek, a leading packaging company in the country, the Bank said on December 21.
The loan will be provided in cooperation with the Taiwan International Cooperation and Development Fund (Taiwan ICDF) which will extend $180,000.
Intizar Yurek is the second largest manufacturer of corrugated cardboard and packaging in Turkmenistan, operating since 2007. The company plans to use the loan to purchase new equipment, which will allow it to increase its capacity, launch new product lines and become more efficient. With the new equipment the company will be able to produce more sophisticated multi-colour designs and speciality boxes.
As part of the project, Intizar will introduce an environmental and social action plan for the first time.
This is the third EBRD project in Turkmenistan supported by Taiwan ICDF which is in charge of Taipei China’s overseas development programme, through their contribution to EBRD’s Financial Intermediary and Private Enterprises Investment Special Fund. Taiwan ICDF also co-financed Turkmen brewer Berk’s move into snacks and the expansion of meat producer Taze Ay, both in 2016.
The investment will also receive support from the European Union’s Investment Facility for Central Asia (IFCA) which will provide first loss cover and from a risk sharing facility provided by Taiwan ICDF. This donor participation will make the loan more affordable to the company. IFCA will also sponsor financial and legal due diligence and support from a technical consultant for the company.
The loan comes after a successful completion of a business consultancy project led by the EBRD’s Advice for Small Business services, which helped the company bring its operations in line with international lenders’ requirements.