Azerbaijan, Baku, Apr. 22 / corr Trend A.Badalova /
The International Finance Corporation (IFC) selected five pilot companies under phase 2 of the Azerbaijani Corporate Governance Project (ACGP) Technical Assistance program, Swiss State Secretariat for Economic Cooperation (SECO) national program manager Naile Safarova said. SECO provides financial support to implement the project.
"We will start working only with two companies by summer," Safarova said.
Priority of ACGP phase 2 is that now it insurance companies and microfinance organizations, though earlier more accent was made on bank structures, according to Safarova.
The project aims to improve corporate governance in joint-stock ventures, including commercial banks. Pilot organizations are selected in accordance with investment potential and financial prospects of companies and banks, their disposition to reforms. The selected companies and banks can participate in large programs, stipulating appraisal of corporate governance, consultations over improvement of improving mutual relations between the structures and boards, management and shareholders. Furthermore, assistance will be provided to bring corporate documents in line with the best experience, to develop more transparent and open financial reports.
Participation in the pilot program at the first phase was free. The second phase is paid due to provide loyalty of private companies and bank to participate in ACGP program.
The State Secretariat for Economic Affairs (Seco) assumed financing of the second phase and invested over $4 million.
The corporative governance project helps to introduce corporative governance standards adjusted to the requirements of the Organization for Economic Cooperation and Development (OECD).
The official opening of the project was initiated by IFC and financed by Seco on Jan. 25, 2005. The first phase covered three years worth $2.1 million.
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