On February 10, President Gurbanguly Berdimuhamedov has held a working video conference session where the outcomes of the economic, financial and banking complex of the country in 2020 were reviewed and objectives for the current year were outlined.

The meeting was attended by the Deputy Chairman of the Cabinet of Ministers in charge of the economic block, heads of a number of ministries and departments, banking structures, rectors of specialized universities.

Coming over to the agenda, the head of Turkmenistan has given the floor to Minister of Finance and Economy M. Serdarov, who reported on the results of the work done in 2020.

As of January 1 of this year, the plan for the revenue of the State Budget was fulfilled by 101 percent, and the expenditure part by 99.9 percent.  The plan on revenues of local budgets for the reporting period was fulfilled by 102.2 percent, on expenditures by 99.9 percent.

119 meetings of balance commissions have taken place last year including 104 regional meetings.  85 units of state property were privatized for the period under review.

The volume of investments allocated for the development of the national economy from all financial sources was equal to 22.4 percent of GDP.  The investment program for 2020 was fulfilled by 102.4 percent, with 55.7 percent of capital investments spent at production facilities, 44.3 percent - for social purposes.

It was also reported on the progress of work outlined in new edition of the National Program of the President of Turkmenistan for the transformation of the social conditions of rural population until 2020.

Having listened to the report, the head of state focused on number of key tasks for the further progressive development of the national economy.

Expressing discontent with the results of the work carried out in these areas, the President of Turkmenistan has instructed to take appropriate measures for improvement of the mechanisms of privatization of state-owned facilities, analysis of the financial and economic condition of all sectors of the national economy as well as the efficiency of using their production capacities.

Then the floor was given to the Minister of Labour and Social Protection of the Population M. Sylapov, who reported on the work carried out in 2020.

According with the instructions given by President Gurbanguly Berdimuhamedov during a meeting with deputies of the Mejlis in February last year, proposals on amendment and addendum of the Code "On Social Protection of the Population" and the Law of Turkmenistan "On State Pension Insurance" have been developed.  A new edition of the Labour Code of Turkmenistan has also been developed submitted to the Mejlis of the country for review.

10 normative legal acts arising from legislative documents has been developed, approved in the prescribed manner and put into effect for the period under review.

The measures provided by the Program of improvement of the working occupancy and opening of new work places for 2015-2020 have been fully implemented.  Issues related to the provision of work for citizens requiring the state support are under special control.  Information about vacancies is systematically brought to the attention of the population.

Electronic document management system has been introduced in the central offices of the Ministry of Labour and Social Protection and the Pension Fund of Turkmenistan.

The annual contribution plan for State Pension Insurance was fulfilled by 110.6 percent, which is 14.4 percent more than in 2019.  The indicator of the volume of pension savings for voluntary pension insurance of citizens in 2020 compared with the previous year has been increased by 11 percent.

Having listened to the report, President Gurbanguly expressed discontent with the work carried out by the Ministry for employment of the population and gave a number of specific instructions pointing out the need to improve the procedure for provision of employment services and information about the situation on the labour market.

Further, the head of the Main State Service "Türkmenstandartlary" M. Hozhagulyev has reported on the results of the activities of this department in January-December 2020.  It was reported that work for standardization, certification, metrology, labour protection and underground resources, industrial safety is carried out at present.

75 thousand certificates of conformity were issued for products imported from abroad, local production, services, labour and industrial safety have been issued.  585,600 measuring instruments have been inspected, 1,415 standards and technical specifications have been revised and updated.

Summing up the report, President Gurbanguly Berdimuhamedov has expressed dissatisfaction with the activities of the Service pointing out that the quality and safety control of products and goods, works and services have to comply with international standards.

Chairman of the State Statistics Committee S. Velbegov has reported on work of the organization under his supervision in 2020.

Following the instructions of President Gurbanguly Berdimuhamedov on improvement of statistics taking into account the best world practice and implementation of digital system in office work, 35 types of statistical reports have been analysed last year.  In the result of their revision and generalization, the number of types of statistical reporting has been reduced.

According the Concept for the Development of the Digital Economy in Turkmenistan for 2019-2025, work plan for the transition of the State Committee on Statistics to a digital system in the period 2020-2021 has been drafted.  The Committee has introduced electronic document management system according to the plan.

Summing up the report and referring to the necessity of proper organization of reforms covering the most important issues of improvement of the management system, quality of official statistics and preparation of statistical data, the head of state gave relevant instructions.

Furtheer, General Director of the State Insurance Organization G. Nurmukhammedov has reported on the results of the work carried out last year.

In 2020, the plan of contracts with individuals and legal entities was implemented by 125.4 percent.  In particular, the plan for compulsory types of insurance was fulfilled by 137.3 percent.

For voluntary insurance, this figure was 123.5 percent.  the volume of the insurance fund, which is formed up at the cost of incoming insurance premiums, for the period under review has been increased by 6.1 percent in comparison with 2019.

According to the action plan for the implementation of the Program of the President of Turkmenistan for the social and economic development of the country for 2019-2025 and taking into account international standards, the Law of Turkmenistan "On Amendments and Addendums of the Law of Turkmenistan" On Insurance" has been adopted. The regulatory legal acts have been re-ratified according to new law.

Summarizing the report and focusing on the importance of increasing the competitiveness of the insurance market in Turkmenistan, Head of State Gurbanguly Berdimuhamedov expressed his discontent with the activities of this structure.  In this regard, the leader of the nation has instructed to pay special attention to the development of information technologies and to accelerate the digitalization process as well as to apply new modern methods of work.

Chairman of the Central Bank M. Annadurdyev has informed about the results of the banking sector in 2020.

As of January 1 this year, the amount of funds allocated for the financial needs of economic entities of the economy has been increased by 11.4 percent.  The amount of loans allocated to the non-government sector has been increased by 18.9 percent comparing with the last year.

As part of measures to support entrepreneurs, the volume of allocated beneficial bank loans has been increased by 4.3 percent.  1,821 projects have been financially supported.

The amount of credit funds allocated to private producers for the purchase of agricultural machinery and equipment has been increased by 34.9 percent.

Having listened to the report, President Gurbanguly Berdimuhamedov expressed serious complaints about the activities of the banking sector and strictly demanded to carry out effective work to solve the strategic tasks set in this direction.

Further, Chairman of the State Commercial Bank "Türkmenistan" M. Hajiyev reported on the outcomes of work carried out in the structure under his supervision last year as well as on the measures to solve the tasks outlined for the current year.

Expressing dissatisfaction with the activities of the bank, President Gurbanguly Berdimuhamedov has noted that no attention has been paid to the issues of arrangement of work of the bank in accordance with the requirements last year.

Further, Chairman of the State Commercial Bank "Türkmenbaşy" J. Dzhumagylydzhov has reported on the measures taken for improvement of the functions of all structures of the bank by the introduction of international best practices as well as on improvement of the quality of services provided to clients.

The leader of the nation expressed dissatisfaction with the solution of the objectives given to the bank and the implementation of relevant programs, having strictly demanded that necessary measures have to be taken for effective implementation of the reforms deployed in the banking sector.

Continuing the meeting, Chairman of the State Commercial Bank "Daýhanbank" S. Aganiyazov has reported on the ongoing work for improvement of financial support of the structures of national agricultural complex, on the implementation of the instructions given earlier by the head of state for enhancement of the effectiveness of practical measures taken in this direction.

 

Summing up the report, President Gurbanguly Berdimuhamedov has expressed dissatisfaction with the measures being taken to improve the bank's activities.

Further, Chairman of the Board of the Joint-Stock Commercial Bank "Halkbank" M.Arabov has reported on the work aimed at the effective use of financial resources coming from various sources and the introduction of innovative methods and digital technologies into the banking service system.

Noting the inconsistency of the implementation of credit and monetary policy in banking sphere with the time requirements, the leader of the nation has expressed dissatisfaction with the measures taken in this direction.

Chairman of the State Bank for Foreign Economic Affairs R. Jepbarov has reported on work carried out and the targeted steps taken to enhance international cooperation, introduction of innovations and modern technologies into the bank's structures.

Expressing dissatisfaction with the bank's execution of operations with foreign investments and measures being taken to regulate monetary circulation, President Gurbanguly Berdimuhamedov has demanded to organize the work properly, drawing a conclusion from the current situation.

Chairman of the State Development Bank S. Bayramov has reported on the outcomes of work over the past year and on the steps taken together with the relevant structures for further modernization of banking activities.

Summing up the report, the leader of the nation has expressed dissatisfaction with the approaches to the organization of banking system.  Special attention should be paid to the issues of reorganization of work of banks, which occupy an important place in the economic development of the country, taking into account current situation in the world, the head of state noted, having strictly demanded to carry out the necessary work in this direction.

Chairman of the Board of the Joint-Stock Commercial Bank "Senagat" T. Tachmuhammedov has reported on comprehensive measures for improvement of crediting, expansion of banking services offered to institutions, enterprises and citizens and on improvement of the quality of such services.

Expressing discontent with the organization of the bank's activities, President Gurbanguly Berdimuhamedov has demanded to keep under constant control the issues of managing financial resources, increment of the volume of non-cash payments and improvement of banking operations.

Chairman of the Board of the Joint-Stock Commercial Bank "Rysgal" S. Gurbandurdyev has reported on large-scale measures taken to support small and medium businesses, to meet the demand of entrepreneurs on financial resources and to bring works in this direction in line with the time requirements.

Having stated the presence of deficiencies in the bank's activities in providing services to customers when making payments and settlements, the head of state expressed serious criticism in this regard.

Further, the rector of the Turkmen State Institute of Economics and Management H. Geldimyradov has reported on the work carried out.

According to the Concept for the Development of the Digital Education System in Turkmenistan, a digital educational portal and website (tsiem.edu.tm) have been opened by the university, an electronic document management system has been introduced into the internal computer network.

The Institute carries out work on 17 subjects approved by the Academy of Sciences.  In order to improve the qualifications of specialists, educational, methodological, scientific and practical activities, cooperation has been established with 9 foreign higher educational institutions.  In 2020, the institute became a member of the International Association of Universities.

Further, Rector of the Turkmen State Financial Institute B. Tangryberdiev has made a report.

Currently, the university trains specialists in 10 different specialties of the financial and economic complex according to the approved curriculum including in digital technologies.  Curricula for all specialties have been supplemented with the subject “Digital Economy”.

Every year, students and teachers of the university take part in scientific work contest among young scientists, where they achieve success, in honour of Science Day.  The teachers of the institute also carry out research activities in topical areas.

According to educational plan, the students of the university undergo practical training in the structures of the country's financial and economic complex for practical improvement of theoretical knowledge.

Having listened to the report, President Gurbanguly Berdimuhamedov gave instructions on further improvement of educational process in the university, development of the scientific foundations for training specialists in the context of modern requirements, and wide introduction of advanced information and communication technologies.

Continuing the session, the leader of the nation has given the floor to Deputy Chairman of the Cabinet of Ministers G. Mushshikov.  Reporting on the results of the financial and economic complex for 2020, the vice-premier has informed on the implementation of the State budget and the development of capital investments from all sources of funding.

Summing up the report, the President of Turkmenistan has expressed complaints about the activities of the complex supervised by the vice-premier emphasizing the importance of implementing effective measures to ensure economic stability and growth, as well as the need for regular analysis of the situation taking into account the global economic situation, control over the targeted use of financial resources.

Summing up the outcomes of the working meeting dedicated to the development of the economic, financial and banking sector, the head of state has highlighted that everyone would have to work hard in the year of the 30th anniversary of the independence of the Motherland.

Optimally using the reserves available in the complex, the work should be organized according to current requirements.  Using the latest achievements of science and technology, it is necessary to introduce digital systems and the most effective methods at the level of world standards into practice, President Gurbanguly Berdimuhamedov noted addressing relevant instructions to the meeting participants in this context.

Addressing the Minister of Finance and Economy M. Serdarov, the head of Turkmenistan pointed out that it is necessary to take urgent measures aimed at strengthening and sustainable development of the national economy, systematically improving the living standards of the population in the year of the glorious anniversary of independence.

The leader of the nation has noted that thoughtful approach to the development of the State budget and its effective execution is required.

Following international practice, it is necessary to modernize the fiscal system, to improve financial reporting, norms and methods of taxation systematically.  Using digital technologies, it is necessary to accelerate works for provision of the full functioning of the "Electronic Tax" system.

Speaking of this, President Gurbanguly Berdimuhamedov has ordered to organize the activities of the central and regional balance commissions properly.  It was also instructed to make thorough audit of the financial and economic condition of organizations and enterprises under the jurisdiction of ministries, sectoral departments and regional administrations and to present proposals for the modernization of their work.

The head of state has stressed the need to carry out work for increment of the volume and efficiency of capital investments for industrial purposes, in particular, in small and medium-sized businesses.

The leader of the nation has noted that it is necessary to control the construction of buildings and structures and its financing, the acceptance of facilities by the State Acceptance Commission, their further operation and transfer to the users' balance for fulfilment of National rural program.

It is also necessary to keep under strict control the provision of reliable and timely financing of works at the facilities planned for commissioning in honour of the celebration of the 30th anniversary of Turkmenistan's independence as well as facilities financed from the State budget.

With a view to a gradual transition to a market economy, it is necessary to improve the legislation and to take appropriate measures to organize the work of the closed joint-stock company "Ashgabat Stock Exchange" taking into account the development of the securities market as well as following international practice.

Coming over to the objectives of the Ministry of Labour and Social Protection of the Population, President Gurbanguly Berdimuhamedov has instructed its head M. Sylapov to take systematic measures for improvement of the provision of people with jobs, open new work places and employment of able-bodied citizens in regions and industries.

In this regard, it is necessary to establish monitoring and keep under unremitting control the availability of labour reserves and all available working places in cities, districts and villages. It is necessary to constantly improve the existing regulatory legal acts on labour relations, wages and labour protection according to the time requirements, the head of Turkmenistan said.

The leader of the nation has ordered to provide comprehensive state support to citizens in need of special social protection, to ensure control over their priority employment.

President Gurbanguly Berdimuhamedov has also ordered to strengthen control over the observance of labor legislation in institutions, organizations and enterprises.  It is necessary to ensure the observance of the rights of citizens to work providing guarantee of healthy and safe working conditions, in particular, for those who work in harmful and especially dangerous working conditions.

It is necessary to ensure the availability of information for the population on occupancies available in organizations and at enterprises in certain specialties by making the best use of the possibilities of the “Employment Page” on the official website of the Ministry.

In addition, the head of Turkmenistan has ordered to carry out appropriate work to ensure a clear assignment and calculation of pensions and state benefits and their timely payment.

It is necessary to keep under control the income of pension contributions to the Pension Fund in full.  Temporarily unused funds and pension savings should be directed to investments, ensuring their profitable turnover.

Addressing chairman of the State Statistics Committee S. Velbegov, the leader of the nation Gurbanguly Berdimuhamedov has instructed to improve the methods of calculation of the GDP and other macroeconomic indicators.

Having analysed and summarized the types of statistical reports, it is necessary to exclude their unnecessary and irrelevant types carrying out this activity through a digital system.

In order to achieve a clear reflection of indicators of the economic development of our country in the documents of international financial structures, it is necessary to provide the availability of information on the main financial and economic indicators of Turkmenistan to the world community.

President Gurbanguly Berdimuhamedov ordered the head of the Türkmenstandartlary Main State Service M. Hojagulyev to study the provision of laboratory and testing equipment located in the regions and areas of the Service's structural units and laboratories, the possibilities of certification of various types of products and goods in the year of celebration of the 30th anniversary of sacred independence.

At the same time, the leader of the nation has noted the importance of proper works to simplify the methods of standardization and issuance of certificates, to improve the quality of services provided.  It is necessary to provide appropriate equipment for laboratories under the jurisdiction of the Service for laboratory tests of some goods imported from abroad and made in our country.

Further, referring to General Director of the State Insurance Organization G. Nurmukhammedov, the head of Turkmenistan has ordered to carry out necessary work on systematic study and implementation of modern types of insurance and calculation rules used in international markets and the world community in our country and on improvement of profile methods.

President Gurbanguly Berdimuhamedov has instructed to take appropriate measures to modernize the national insurance system in the context of development of market economy and strengthening of its stability, increment of competitiveness and investment opportunities.

At the same time, proper measures should be taken to improve the insurance culture and financial literacy of insurance market participants, to advertise insurance services, the leader of the nation emphasized.  It is also necessary to accelerate the work on the provision of electronic services in this area.

Addressing Chairman of the Central Bank M.Annadurdyev and the heads of commercial banks, President Gurbanguly Berdimuhamedov has pointed out the importance of stable internal monetary circulation in the year of the 30th anniversary of independence as well as control measures for coordinated regulation of the amount of funds.

It is necessary to pursue monetary policy and improve the management of financial resources, provide and increase the efficiency of targeted use of loans for economic development, the head of state said.  It is necessary to regulate the cash flow in the country and to ensure that the volume of non-cash payments exceeds 40 percent.

Appropriate measures should be taken on regular basis to increase the exchange rate of the national currency, to regulate and control transactions involving foreign currency.  The Central Bank and other banks should follow these requirements when making payments and settlements on import transactions, exchanging clients' manat funds into foreign currency at the official exchange rate, and, if necessary, to develop a draft special normative act in this area, the leader of the nation said.

President Gurbanguly Berdimuhamedov has also spoken about the expediency of updating the partnership strategies with the World Bank, Asian Development Bank, Islamic Development Bank, European Bank for Reconstruction and Development and other financial institutions, to continue work for attraction of their loans and investments on beneficial terms.

Further, the leader of the nation has focused on the activities of the Turkmen State Institute of Economics and Management and the Turkmen State Institute of Finance addressing specific instructions to their rectors.

It is necessary that the teaching staff, economists of universities together with specialists from the financial and banking complex male periodic analysis of the stages of the forecasted crises in the world economy and develop measures to prevent their negative impact on national economy, the President of the country emphasized.

The head of state Gurbanguly Berdimuhamedov has stressed that it is necessary to organize the training of highly qualified personnel for this complex taking into account time requirements, to review and update curricula, programs, textbooks and manuals, and to introduce advanced teaching methods.

The rectors of the aforementioned universities have also been instructed to step up activities for improvement of the quality of educational process in accordance with state and national programs and concepts based on innovative technologies and the latest scientific achievements, combining theory with practice.

It is necessary to pay special attention to the quality of scientific works and take measures to introduce their results in various segments of the economy, for which it is also necessary to conduct various contests and organize topical TV programs regularly.

It is necessary that the digitalization of the economy be at the forefront of all ongoing reforms.

Speaking of this, President Gurbanguly Berdimuhamedov instructed to establish an exchange of practice with leading specialized universities, international financial organizations of the world including with their professors, teachers and experts for the effectiveness of studies and scientific and experimental research widely using the capabilities of the digital system.

The professional development of teachers should be constantly monitored. It is necessary periodically to organize programs and publications in the media with articles about the reforms in the country with the participation of teachers in the field of economics, the leader of the nation emphasized.

Addressing Deputy Chairman of the Cabinet of Ministers G. Mushshikov, the head of state has pointed out the necessity of work aimed at provision of social, economic and cultural development of the Motherland, maintenance of stable growth rate of the gross domestic product, further increment of the state revenues and intensification of market relations in the economy in the year of celebration of the 30th anniversary of independence.

It is necessary to analyse the financial and economic condition, financial support of all areas, to make settlement of interdepartmental debts and take measures for timely regulation of such situations.  It is also necessary to improve the activities of the ministries and profile departments of the complex, to strengthen control over the timely implementation of the plans, President Gurbanguly Berdimuhamedov stressed.

Continuing the subject, the leader of the nation has noted the importance of large-scale measures for the privatization of state property as well as strengthening of organizational work for preparation of the facilities to be privatized together with relevant ministries, sectoral departments and regional and Ashgabat administrations.

The head of state stated further that the work carried out in all segments of the economy last year has been analysed in details.  It follows from the result that numerous shortcomings in the activities of these industries, unsatisfactory functioning of the financial and economic complex are the results of weak supervision of vice-premier G. Mushshikov of the work of the supervised structures.

Despite the instructions given to the Ministry of Finance and Economy at the meetings of the Cabinet of Ministers, the financial condition of the ministries and sectoral departments is not thoroughly studied, relevant proposals are not presented, President Gurbanguly Berdimuhamedov noted.  As a result, the debts to the State budget have increased significantly at the end of last year in comparison with the beginning of the year.

Late translations as well as the lack of full control over this process and the inaction of the Ministry have caused large debts to contractors for work performed under the National Rural Program and other programs.  It has led to the fact that starting in 2015, a number of construction projects were abandoned.  The amount of inter-departmental debts has reached 12 billion manats.

In this regard, the leader of the nation has also pointed out the lack of proper control over the implementation of National Rural Program, which has strategic importance, from the vice-premier.  The construction of social and cultural facilities provided in this Program, new, modern villages and settlements in districts is carried out at a slow pace.  The analysis of the reasons that caused this lag is not carried out, the leader of the nation Gurbanguly Berdimuhamedov emphasized.

The head of state continued that inspection reveals that many facilities are being built without design estimates.  For some reason, these documents are drawn up by the contractor after the completion of construction.  For many years, no payments were made for the construction of some facilities.

The organization of activities for the privatization of state property also does not meet the requirements.  In addition, proper control over compliance with the conditions of privatization is not ensured at privatized enterprises and facilities.

Despite the fact that the relevant Ministry should implement the government policy for the development of the private sector of the economy, the analysis of the number of entrepreneurs involved in these areas, directions and types of their work is not carried out and sufficient attention is not paid to the problems arising in this area, President Gurbanguly Berdimuhamedov stated.  Therefore, the Union of Industrialists and Entrepreneurs is engaged in the main activity on the development of entrepreneurship and the Ministry does not show sufficient activity in this matter.

Moreover, despite the presence of such unsatisfactory indicators, no proposals were received from Minister of Finance and Economy M. Serdarov to correct the situation.  Based on this, the head of state reprimanded him for the shortcomings in his work with the last warning about their correction as soon as possible.  If these deficiencies are not corrected then M. Serdarov would be terminated from his post by the end of the six months, the leader of the nation said.

Addressing the Chairman of the Central Bank M. Annadurdyev, the President of Turkmenistan has pointed out that the Government has many claims to the activities of banks.  The Central Bank should take an active part in financing priority national investment projects and strengthen the work of other banks in provision of credits to industrial sectors of the economy.

Your main goal for today is to maintain a stable exchange rate of the national currency.  However, this work is not being done properly now.  In addition, instead of strengthening the exchange rate of the manat, the heads of banks do not participate in this activity, the head of state said.

At present, the balances of overdue outstanding loans are reaching 1 billion manat, which shows the quality of the banks' work.  In addition, the collateral system is not simplified when issuing credit funds.

The government's decision on financial support of agricultural producers is being implemented unsatisfactorily.  Measures to introduce non-cash payments are improperly organized.  Joint work for provision of the population's solvency for electricity, natural gas, utilities, train tickets and other payments using cards is at a low level, the head of state emphasized.

The President of Turkmenistan issued a severe reprimand to the Chairman of the Central Bank M. Annadurdyev for unsatisfactory performance of official duties and shortcomings in the work with the last warning to correct the shortcomings as soon as possible.

According to the leader of the nation, the activities of the banking complex would be once again reviewed in detail at the end of six months.  The final assessment of the work of the Chairman of the Central Bank and other heads of banks will be given at the same time.

Head of state Gurbanguly Berdimuhamedov has announced a severe reprimand to the chairmen of the State Commercial Banks "Türkmenistan" and "Türkmenbaşy" M. Hajiyev and J. Jumagylydzhov for the shortcomings in the banking system and has made the last warning about correcting the shortcomings in the shortest possible time.

The chairman of the State Bank for Foreign Economic Affairs R. Jepbarov, Chairman of the State Development Bank S. Bayramov, Chairman of the State Commercial Bank "Daýhanbank" S. Aganiyazov, Chairmen of the Board of Joint-Stock Commercial Banks "Halkbank" and "Senagat"  M. Arabov and T. Tachmukhammedov have also been reprimanded for deficiencies admitted in work.

In addition, the President of Turkmenistan has reprimanded Chairman of the Board of the Joint-Stock Commercial Bank "Rysgal" S. Gurbandurdyev and Deputy Chairman of the Cabinet of Ministers G. Mushshikov.

Having signed the relevant Orders, the leader of the nation instructed the vice-premier to develop measures designed to increase the efficiency of the financial, economic and banking complex and contribute to the further intensive development of the national economy.

Finishing video conference working session, President of Turkmenistan Gurbanguly Berdimuhamedov wished the participants good health, family wealth and great success in work for the further prosperity of the sovereign Motherland.