TURKMENISTAN: MEETING WITH CENTRAL BANK CONFIRMS SUPPORT

UNCLAS ASHGABAT 000912 SIPDIS SENSITIVE STATE FOR SCA/CEN, SCA/PPD, EUR/ACE, DRL AID/W FOR EE/EA E.O. 12958: N/A TAGS: PGOV PREL PHUM EAID KDEM TX SUBJECT: TURKMENISTAN: MEETING WITH CENTRAL BANK CONFIRMS SUPPORT FOR ACCOUNTING/CIPA PROGRAM ¶1. (SBU) Sensitive but unclassified. Not for public Internet. ¶2. (SBU) On July 08,2008, USAID/CAR Regional Mission Director Bill Frej met with the Chairman of the Central Bank of Turkmenistan, Guvanch Geoklenov, to announce USAID's plan to extend the Accounting/CIPA program in Turkmenistan for another eighteen months. The extension will support the Turkmen banking sector's efforts to transition to International Financial Reporting Standards by building the capacity of two higher education institutions, including the Banking College, to deliver International Financial Reporting Standards courses. The extension will also support a Russian-speaking international expert who will guide the transition process. Geoklenov, as a sign of support, thanked USAID for continued cooperation in accounting reforms and highlighted how this initiative supports the present course of economic reforms in Turkmenistan. ¶3. (SBU) During the meeting, Central Bank Chief Accountant Byashim Khojamamedov thanked USAID for cooperation under the present Memorandum of Understanding with UNDP. Khojamamedov also expressed appreciation for USAID's assistance in designing a new Chart of Accounts in accordance with International Financial Reporting Standards requirements. He said three pilot banks are integrating it into their systems. Once proven successful, this Chart of Accounts will be incorporated into the systems of all Turkmenistan banks. Khojamamedov praised the work of two working groups that were established -- one on the legal aspects of transition and another on educational issues. He described the Government's vision of transitioning to International Financial Reporting Standards, first by introducing National Accounting Standards (NAS) that are close to International Accounting Standards (IAS),and then by moving to IAS. ¶4. (SBU) Khojamamedov was pleased with the results of the International Financial Reporting Standards Conference conducted by USAID and UNDP in April 2008. Frej informed the Central Bank officials that on June 2 USAID sought official approval from the Supreme Council on Science and Technology for integrating the CIPA program into university curricula and requested the Central Bank's support for the approval process. ¶5. (SBU) (SBU) COMMENT: The meeting with Central Bank Chairman Goeklenov confirmed the Bank's continued commitment to a transition to International Financial Reporting Standards. It also showed that the government's support for reform in this area and for USAID assistance is high. Once official approval of the CIPA program by SCST is conferred, USAID expects to receive increased government support. Despite this opportunity, USAID will only be able to provide limited assistance, given current budget realities ($450,000 in FY08). END COMMENT. CURRAN