The Central Bank of Turkmenistan has approved a new procedure for granting preferential loans to agricultural producers. The document was adopted via Order No. 280, issued by the Chairman of the Central Bank, T. Malikov, on August 24, 2026, and was registered by the Ministry of Justice on September 16, 2026, under number 1968. It has been developed in pursuance of the Decree of the President of Turkmenistan No. 1822 dated May 11, 2026, regarding financial support for agricultural producers.

The new procedure replaces the previous one, which was approved by Central Bank Order No. 418 dated November 30, 2018, and is now repealed.

Loans may be obtained by dayhan associations and farms, agricultural joint-stock companies, agricultural research institutes, landowners, land users, land lessees, private entrepreneurs, and non-state resident legal entities. They will be issued by authorized credit institutions in Turkmenistan, with the exception of organizations with 100% foreign capital. Loans may be provided in both national and foreign currency.

Funds are provided for the purchase of agricultural machinery, implements, excavators and bulldozers, water-saving equipment, various types of machinery, irrigation pipelines, and transformers. Loans are also granted for investment projects in livestock and poultry farming, the production and processing of agricultural products, the provision of services, and the acquisition of fixed assets and property. It is prohibited to use credit funds to cover losses, pay fines, manufacture tobacco products or alcohol, or establish working capital for retail or hairdressing businesses.

The interest rate for borrowers is 1% per annum, with a term of up to 10 years. Loans for machinery and equipment must be repaid in equal annual installments. Borrowers are required to contribute at least 15% of their own funds to the project. For investment projects, a grace period may be granted, and financing for such projects can be provided in stages.

The Central Bank opens credit lines for the banks themselves at an annual interest rate of 0.5% in the national currency.

For equipment loans, up to 70% of the equipment's value is accepted as collateral, with the borrower's projected future income taken into account for the remaining portion. For certain categories of borrowers, collateral may take the form of a pledge, a bank guarantee, or a third-party surety. For dayhan associations, the income generated from all their activities serves as collateral.

To obtain a loan, it is necessary to submit an application to the bank, along with registration documents, a business plan, land-related documentation, and information on income for the past two or three years, depending on the type of borrower. The bank must reach a decision within 15 business days from the date the application is registered. In the event of a rejection, the reasons will be provided in writing.

Funds are transferred electronically to a separate credit account. This account can be used to settle the borrower’s payment orders, as well as to purchase foreign currency for making payments to non-residents under foreign trade contracts.

Banks are required to verify on-site that loans are being used for their intended purpose and to submit monthly reports to the Central Bank, including a list of recipients. In the event that funds are used for purposes other than those intended, the bank has the right to debit the corresponding amount from the borrower’s accounts ahead of schedule; in the event of a payment default, the bank may terminate the agreement and demand early repayment.

The document lists several objectives for the support, including increasing crop yields, bringing unused land into production, boosting the output of import-substituting goods and exports, creating jobs, and raising the incomes of agricultural producers.