Turkmenistan Stabilization Fund

Turkmenistan Origin: Oil and Gas

Profile Directories

Sovereign Wealth Funds

Public Funds

Established: 2008
Transparency Rating: N/A
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Firm Investment Style: Mixed
Entity Structure: Fund
Population Est.: 6.0 million – 2012 Estimation
Wealth Per Capita Est.:

Fund Details


Main Office

Ministry of Finance of Turkmenistan
Str. 2008, 4.
Ashgabat, 744000
Turkmenistan

Governance

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Summary

Turkmenistan’s President Gurbanguly Berdimuhamedov decreed the creation of a stabilization fund in October 2008. The stabilization fund was developed to make Turkmenistan’s fiscal budget less vulnerable to global price commodity swings. The stabilization fund will assist in funding large-scale public investment projects.

Background on Turkmenistan Stabilization Fund

Turkmenistan has extensive natural gas reserves. Before the creation of the stabilization fund, the government of Turkmenistan held assets from oil and gas revenues in the foreign exchange reserve fund (FERF) which is an account held at Deutsche Bank. Last checking, around 20% of gas revenues are required to go to the state budget.

The stabilization fund will be funded by remaining surplus of the state budget. The fund also accumulated the financial assets of the state. A portion of the stabilization fund will be future generations’ fund which will invest in equities and real estate.