Turkmenistan: Supporting the Introduction of International Financial Reporting Standard 9 Financial Instruments in Two Commercial Banks

Sovereign Project | 54411-001

The objective of the Project is to implement IFRS 9 Financial Instruments in the two commercial banks ("Rysgal" and "Senagat"). The project will also disseminate knowledge of IFRS 9 to the broader banking community in Turkmenistan.

Project Details

  • Project Officer
    Yu, Chang Ching
    Central and West Asia Department
    Request for information
  • Country
    Turkmenistan
  • Sector
    • Finance
Project Name Supporting the Introduction of International Financial Reporting Standard 9 Financial Instruments in Two Commercial Banks
Project Number 54411-001
Country Turkmenistan
Project Status Active
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 6578-TKM: Supporting the Introduction of International Financial Reporting Standard 9 Financial Instruments in Two Commercial Banks
Technical Assistance Special Fund US$ 225,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Knowledge solutions
Private sector development
Sector / Subsector

Finance / Finance sector development

Gender Equity and Mainstreaming No gender elements
Description The objective of the Project is to implement IFRS 9 Financial Instruments in the two commercial banks ("Rysgal" and "Senagat"). The project will also disseminate knowledge of IFRS 9 to the broader banking community in Turkmenistan.
Project Rationale and Linkage to Country/Regional Strategy

If successful, the Project will:

- improve the banks' loan loss provisioning practices in line with IFRS 9 and hence help ensure that loan valuations are fairly reflected in their financial statements, and

- allow them an important step towards complying with national law which prescribes International Financial Reporting Standards for the country's banking sector.

Impact "Rysgal" and "Senagat" banks' resilience to shocks strengthened
Project Outcome
Description of Outcome "Rysgal" and "Senagat" banks' credit risk exposures adequately provided for
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

IFRS 9 methodologies and models developed, tested and applied for: (i) calculating 12-month and lifetime expected credit losses on "Rysgal" and "Senagat" banks' exposures; and (ii) moving the exposures from 12-month to lifetime expected credit loss measurement and vice versa

"Rysgal" and "Senagat" banks' financial instruments for the year ended 31 December 2018 and the year ended 31 December 2019 restated, presented and disclosed in line with IFRS 9 and other IFRS as applicable

Following the successful implementation of IFRS 9, wrap-up workshop(s) conducted for the broader audience representing the entire banking sector to disseminate the TA's findings and lessons learnt

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Nation-wide
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services A consulting firm comprising a multiple-expertise team of international and national specialists will be recruited using consultants' qualifications selection (CQS) method. CQS is proposed because few consultants may be qualified for the assignment at hand. For example, any of the Big Four accounting firms is deemed to possess the required expertise to deliver the project outputs and outcomes subject to no conflict of interest -- actual, potential or perceived. ADB will engage the firm following the ADB Procurement Policy (2017, as amended from time to time) and its associated project administration instructions and/or staff instructions. The consulting firm will decide which specialists will be fielded but it will be strongly anticipated that experts in economics, econometrics, statistics, accounting and credit risk management will be included.
Responsible ADB Officer Yu, Chang Ching
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Turkmenistan Resident Mission
Executing Agencies
Central Bank of Turkmenistan
22 Bitarap Turkmenistan Street
Ashgabat 744000, Turkmenistan
Timetable
Concept Clearance -
Fact Finding -
MRM -
Approval 19 Oct 2020
Last Review Mission -
Last PDS Update 19 Oct 2020

TA 6578-TKM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
19 Oct 2020 - 19 Oct 2020 30 Nov 2021 28 Feb 2022 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
225,000.00 0.00 0.00 0.00 0.00 0.00 225,000.00 19 Oct 2020 38,035.00

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

None currently available.


Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.


Evaluation Documents See also: Independent Evaluation

None currently available.


Related Publications

None currently available.


The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

Tenders

Tender Title Type Status Posting Date Deadline
Supporting the Introduction of International Financial Reporting Standard 9 Financial Instruments in Two Commercial Banks Firm - Consulting Closed 20 Oct 2020 03 Nov 2020

Contracts Awarded

Contract Title Approval Number Contract Date Contractor | Address Executing Agency Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
Capacity Development Technical Assistance 6578 19 Feb 2021 PricewaterhouseCoopers Limited Liability Partnersh(KAZAKHSTAN) in association with PricewaterhouseCoopers Audit Subsidiary(UZBEKISTAN) | Al-Farabi Almaty A25D5F6 Kazakhstan Central Bank of Turkmenistan 224,994.00

Procurement Plan

None currently available.