Identifier
Created
Classification
Origin
09ASHGABAT85
2009-01-20 10:18:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Ashgabat
Cable title:
GOVERNMENT SHAKEUP LEADS MINFIN TO REQUEST IFRS TRAINING
how-toVZCZCXRO0483 RR RUEHAG RUEHAST RUEHBI RUEHCI RUEHDF RUEHIK RUEHLH RUEHLN RUEHLZ RUEHNEH RUEHPW RUEHROV RUEHSK RUEHSR RUEHVK RUEHYG DE RUEHAH #0085/01 0201018 ZNR UUUUU ZZH R 201018Z JAN 09 FM AMEMBASSY ASHGABAT TO RUEHC/SECSTATE WASHDC 2166 INFO RUCNCIS/CIS COLLECTIVE RUCNMEM/EU MEMBER STATES COLLECTIVE RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE RHMFIUU/CDR USCENTCOM MACDILL AFB FL RUEAIIA/CIA WASHDC RHEFDIA/DIA WASHINGTON DC RHEHNSC/NSC WASHDC RUEHVEN/USMISSION USOSCE 3254 RUEKJCS/JOINT STAFF WASHINGTON DC RUEKJCS/SECDEF WASHINGTON DC
UNCLAS SECTION 01 OF 02 ASHGABAT 000085
SENSITIVE
SIPDIS
STATE FOR SCA/CEN, EUR/ACE, EEB
AID/W FOR EE/EA
E.O. 12958: N/A
TAGS: PGOV PREL EAID TX
SUBJECT: GOVERNMENT SHAKEUP LEADS MINFIN TO REQUEST IFRS TRAINING
FROM USAID
REF: (A) 08 ASHGABAT 1103 (B) 08 ASHGABAT 1227
(C) 08 ASHGABAT 0040
UNCLAS SECTION 01 OF 02 ASHGABAT 000085
SENSITIVE
SIPDIS
STATE FOR SCA/CEN, EUR/ACE, EEB
AID/W FOR EE/EA
E.O. 12958: N/A
TAGS: PGOV PREL EAID TX
SUBJECT: GOVERNMENT SHAKEUP LEADS MINFIN TO REQUEST IFRS TRAINING
FROM USAID
REF: (A) 08 ASHGABAT 1103 (B) 08 ASHGABAT 1227
(C) 08 ASHGABAT 0040
1. (U) Sensitive but unclassified. Not for public Internet.
2. (SBU) SUMMARY: In response to the January 15 government
personnel changes, a Ministry of Finance department head requested a
meeting on January 16 with USAID FSN in which he pleaded for USAID
training for the Ministry's staff on International Financial
Reporting Standards (IFRS). He said that the Ministry needs at
least 100 staff members competent with IFRS. The State Agency for
Management and Use of Hydrocarbon Resources (State Agency) also
needs similar training following last year's change in the Law on
Hydrocarbons, which required the State Agency to accept
IFRS-compliant reports from international companies (Ref A). The
State Agency does not have sufficient competent staff to meet this
requirement. Current funding levels do not allow USAID to respond
favorably to this request.
SHAKEUP RATTLES NERVES AT MINFIN
3. (SBU) On January 16, USAID Economic Growth FSN and the Program
Coordinator for the UN Development Program (UNDP),which cooperates
with USAID on IFRS transition in banking sector, were summoned to
the Ministry of Finance for what turned into a 2-hour informal
meeting to discuss possible support by USAID for IFRS training.
Ministry of Finance Department Head for Accounting and Tax Policy,
Babajan Charyev, requested USAID assistance in providing IFRS
training for Ministry accountants and other specialists, including
those at other state-owned enterprises. Charyev referred to
President Berdimuhamedov's recent comments urging speedier progress
in the transition to IFRS, and said that the Ministry needs at least
100 people competent in IFRS in order to meet these demands.
Charyev acknowledged that the Ministry should have started this work
earlier and regretted the Ministry had not accepted previous offers
of cooperation from USAID. Recognizing the long-term benefit of the
approach, he expressed appreciation for USAID's work with the
Supreme Council on Science and Technology under the President of
Turkmenistan to integrate IFRS-compliant courses into the higher
education curriculum. (Ref B)
4. (SBU) Charyev said that the State Agency for Management and Use
of Hydrocarbon Resources also needs IFRS training following last
year's change in the Law on Hydrocarbons, which required the State
Agency to accept IFRS-compliant reports from international
companies. The State Agency does not have sufficient competent
staff to meet this requirement. In contrast to the Ministry of
Finance, which has no available funds, Charyev suggested that the
State Agency may use its own funds to pay for trainings.
FUNDS NOT AVAILABLE TO EXPAND CURRENT USAID TRAININGS
5. (SBU) Charyev said ongoing European Union (EU-TACIS) funded
assistance does not include support for trainings. USAID FSN
explained that current USAID funding is not sufficient to expand the
accounting training already planned under its existing Memorandum of
Understanding (MOU) with UNDP and the Central Bank of Turkmenistan
(CBT). If necessary, Charyev said the Ministry would sign a MOU
with USAID to implement IFRS activities. USAID offered to organize
a meeting with the Economic Reform to Enhance Competitiveness (EREC)
project's accounting expert during his next travel to Turkmenistan
(planned for mid-February) to discuss the challenges and possible
responses.
6. (SBU) COMMENT: The Ministry of Finance has been among the most
reluctant of the economic ministries to accept USAID's offers of
cooperation, preferring instead to work exclusively with EU-TACIS.
That it has now requested urgent support in pursuit of President
Berdimuhamedov's mandates signals a change in attitudes within the
government. Regrettably, this and other opportunities to expand
cooperation in the economic sector (Ref C) will be missed in the
absence of additional funding. The introduction of IFRS in
Turkmenistan is a key part of the United States' goal to promote an
open, diversified, and market-based economy, as well as increased
U.S. investment and trade volumes. Increased funding levels that
promote economic reforms would both improve our position as a
reliable provider of quality technical assistance and support
ASHGABAT 00000085 002 OF 002
Turkmenistan as well as help achieve our goal of increased foreign
investment. END COMMENT.
MILES
SENSITIVE
SIPDIS
STATE FOR SCA/CEN, EUR/ACE, EEB
AID/W FOR EE/EA
E.O. 12958: N/A
TAGS: PGOV PREL EAID TX
SUBJECT: GOVERNMENT SHAKEUP LEADS MINFIN TO REQUEST IFRS TRAINING
FROM USAID
REF: (A) 08 ASHGABAT 1103 (B) 08 ASHGABAT 1227
(C) 08 ASHGABAT 0040
1. (U) Sensitive but unclassified. Not for public Internet.
2. (SBU) SUMMARY: In response to the January 15 government
personnel changes, a Ministry of Finance department head requested a
meeting on January 16 with USAID FSN in which he pleaded for USAID
training for the Ministry's staff on International Financial
Reporting Standards (IFRS). He said that the Ministry needs at
least 100 staff members competent with IFRS. The State Agency for
Management and Use of Hydrocarbon Resources (State Agency) also
needs similar training following last year's change in the Law on
Hydrocarbons, which required the State Agency to accept
IFRS-compliant reports from international companies (Ref A). The
State Agency does not have sufficient competent staff to meet this
requirement. Current funding levels do not allow USAID to respond
favorably to this request.
SHAKEUP RATTLES NERVES AT MINFIN
3. (SBU) On January 16, USAID Economic Growth FSN and the Program
Coordinator for the UN Development Program (UNDP),which cooperates
with USAID on IFRS transition in banking sector, were summoned to
the Ministry of Finance for what turned into a 2-hour informal
meeting to discuss possible support by USAID for IFRS training.
Ministry of Finance Department Head for Accounting and Tax Policy,
Babajan Charyev, requested USAID assistance in providing IFRS
training for Ministry accountants and other specialists, including
those at other state-owned enterprises. Charyev referred to
President Berdimuhamedov's recent comments urging speedier progress
in the transition to IFRS, and said that the Ministry needs at least
100 people competent in IFRS in order to meet these demands.
Charyev acknowledged that the Ministry should have started this work
earlier and regretted the Ministry had not accepted previous offers
of cooperation from USAID. Recognizing the long-term benefit of the
approach, he expressed appreciation for USAID's work with the
Supreme Council on Science and Technology under the President of
Turkmenistan to integrate IFRS-compliant courses into the higher
education curriculum. (Ref B)
4. (SBU) Charyev said that the State Agency for Management and Use
of Hydrocarbon Resources also needs IFRS training following last
year's change in the Law on Hydrocarbons, which required the State
Agency to accept IFRS-compliant reports from international
companies. The State Agency does not have sufficient competent
staff to meet this requirement. In contrast to the Ministry of
Finance, which has no available funds, Charyev suggested that the
State Agency may use its own funds to pay for trainings.
FUNDS NOT AVAILABLE TO EXPAND CURRENT USAID TRAININGS
5. (SBU) Charyev said ongoing European Union (EU-TACIS) funded
assistance does not include support for trainings. USAID FSN
explained that current USAID funding is not sufficient to expand the
accounting training already planned under its existing Memorandum of
Understanding (MOU) with UNDP and the Central Bank of Turkmenistan
(CBT). If necessary, Charyev said the Ministry would sign a MOU
with USAID to implement IFRS activities. USAID offered to organize
a meeting with the Economic Reform to Enhance Competitiveness (EREC)
project's accounting expert during his next travel to Turkmenistan
(planned for mid-February) to discuss the challenges and possible
responses.
6. (SBU) COMMENT: The Ministry of Finance has been among the most
reluctant of the economic ministries to accept USAID's offers of
cooperation, preferring instead to work exclusively with EU-TACIS.
That it has now requested urgent support in pursuit of President
Berdimuhamedov's mandates signals a change in attitudes within the
government. Regrettably, this and other opportunities to expand
cooperation in the economic sector (Ref C) will be missed in the
absence of additional funding. The introduction of IFRS in
Turkmenistan is a key part of the United States' goal to promote an
open, diversified, and market-based economy, as well as increased
U.S. investment and trade volumes. Increased funding levels that
promote economic reforms would both improve our position as a
reliable provider of quality technical assistance and support
ASHGABAT 00000085 002 OF 002
Turkmenistan as well as help achieve our goal of increased foreign
investment. END COMMENT.
MILES