Debt collection Turkmenistan
Turkmenistan economy is dependent on natural gas extraction that makes the biggest part of Turkmenistan export. Agriculture and light industry gets the major part of internal market.
External trade as well as economy in a whole, is subject to strict state regulations; major businesses belong to state. Turkmenistan runs policy of import substitution.
The main partners in foreign trade are from Asia: China, Turkey, UAE, Iran and Afghanistan, though Russia also is one of the biggest trade partners.
Turkmenistan culture is oriental and conservative, with distinctive differences from cultures of neighbor countries. Influence of western culture and business practices is extremely limited. Society is quite closed for foreigners; old traditions, family and religion are very respected; tribal and family relations clearly dominate over other ones.
National language is Turkmen from Turkic languages group. Older people, businessmen and population of cities speak or at least understand Russian. Share of English is very small; only some young people and businessmen speak it.
The main challenges to collect debt in Turkmenistan are:
- Cultural and language barrier requires huge efforts to communicate with debtor in Turkmenistan.
- Closed nature of society makes contact with debtor very challenging.
- Tight connections between family clans and business requires knowledge of “who is who” to find correct approach and real decision makers.
- Closed state and strict governmental regulations make it hard to deal with Turkmenistan business.
- Lack of local debt collection market requires more efforts to collect debt.
How to collect debt in Turkmenistan?
Amicable collection is the most effective and cost-saving way to recover debt in Tajikistan. It is advised to refer case to collection when the debt is delinquent over 3 months. The less delinquency is the more chances to collect debt are.
Amicable collection is applicable almost in any case apart from case of debtor’s bankruptcy or liquidation.
Amicable collection is still possible even after statute of limitations (3 years) expired, though chances to collect declines dramatically after 1 year.
What we do to recover a debt in Turkmenistan?
- study case details
- find core reason of failing to pay
- find debtor’s decision makers and financial controllers
- resolve language and cultural issues to reach payment agreement between creditor and debtor
- resolve legal and administrative problems to facilitate pending payments
- consult in finances to enable debtor to pay
- consult in local legislation and business threats to convince debtor to pay
How long it takes in Turkmenistan?
Average time to recover debt in Turkmenistan is 79 days.
What the fees are?
The success fee makes 18% commission from any money recovered.
No collection – no fee policy applies.
- we better understand local culture and customs
- we understand local Turkmenistan languages
- we charge no fees, unless debt is recovered
- we provide operative reporting
How to send case?
- Send your unpaid invoices and supporting documents for our review.
- Sign our debt collection contract and POA received from the manager.