Ashgabat, 30 September 2020: The State Bank for Foreign Economic Affairs of Turkmenistan (Vnesheconombank) became the first bank in the country to implement IFRS 9 - Financial Instruments. Within the framework of the joint UNDP-Vnesheconombank project “Supporting Digital Transformation in Banking”, a number of practical activities were carried out to study and implement a new reporting standard.

“This international standard was developed as a response to the global financial crisis, which really reflects the level of credit risk. The new standard fully reflects information by reporting users. The transition to the new standard is quite laborious,”noted the specialists of the global consulting company PriceWaterhouseCoopers (PWC), who consulted the bank's specialists during the implementation of the new standards.

Vnesheconombank of Turkmenistan is a pilot bank in Turkmenistan that has implemented IFRS 9, which is undoubtedly a positive step for the banking system of Turkmenistan, as it allows investors to take credit risks into account when carrying out investment activities. Today the bank's financial statements meet international financial reporting standards.

“Cooperation with Turkmenistan is of great interest among representatives of international organizations, international financial institutions, leading international banks and transnational companies, international experts working in the field of development finance. In this regard, the transition to IFRS 9 with the support of UNDP served as a platform for transforming the banking and financial sector and constructive discussion of global and regional trends in sustainable development, ”said the project manager, Jennet Annaberdieva.

The implementation of IFRS is carried out in accordance with the implementation of the Program for Development of the Economic, Financial and Banking Sectors of Turkmenistan for 2018-2024.