The European Bank for Reconstruction and Development (EBRD) has granted $ 560,000 loan to Turkmen meat producer Taze Ay, as part of its efforts to support the private small and medium-sized enterprises in the country.
EBRD, along with the Taiwan International Cooperation and Development Fund, will offer a total funding of $ 800,000 to the company.
Of the total funding, the Taiwanese development fund will provide $240,000, while the remaining will be extended by the EBRD.
The loan will allow Taze Ay to increase its production capacity by nearly 25%.
Founded in 2005, Taze Ay has been supported by the EBRD since 2013.
The company received funding for new production lines and distribution network expansion along with business advice on quality, food safety and company management from the EBRD’s Advice for Agribusiness team.
EBRD Advice for Agribusiness head Victoria Zinchuk said: “All EBRD clients in the agribusiness sector in Turkmenistan have received support from international advisers, either before or after financing. The quality of our portfolio in the country confirms that this model works.”
EBRD said that it priorities include boosting economic resilience by supporting the local private sector in the countries where it operates.
Till date, the bank has invested more than $260 million in Turkmenistan, primarily in privately owned manufacturing firms.
EBRD Turkmenistan office head Engin Goksu said: “Supporting local entrepreneurs which strive to satisfy local demand with quality products is one of our priorities in Turkmenistan. Taze Ay is one of these companies which are showing impressive growth as a result of cooperation with the EBRD.”
In September, EBRD provided a $2.28m loan to a Turkmen brewing company Berk group to enter into salty snacks business.
