IFC signs a contract with third pilot company on corporate governance
Azerbaijan, Baku, Oct. 22 / Trend /
Azerbaijani insurance company A-Qroup has become the third company, participating in International Finance Corporation (IFC) pilot program corporate management in Azerbaijan in its second phase, IFC said.
The project assists in sustainable development of local companies. Under the program the IFC will access practice of corporate governance at insurance companies and enable to adjust to international practice.
"We are proud to be the first insurance company attracting IFC's attention to Azerbaijan. WE are sure that the IFC has made a correct choice and we will be able to improve considerably the practice of corporate governance, which in its turn will assist in dynamic development of the company," A-Qroup Managing Board Chairman Anar Bayramov said.
FC will conduct counseling and training for directors, managers and major shareholders, will assist to bring the corporate documents in accordance with best practices, to prepare more transparent and open financial reports and will also help to improve internal control and internal audit.
"The IFC is glad to help one of the leading insurance companies in Azerbaijan in its improving the corporate governance. I hope will and sincere interest of the company to improve its practice of corporate governance will be a good example for other companies, in particular in insurance," Project manager of IFC Caroline Bright said.
Under the corporate governance project the IFC assists with introduction of standards of corporate governance, expanding their opportunities for attracting financing and investing. Two pilot companies have been selected under the second phase - Turan Bank and non-bank credit organization CredAgro
The project aims to improve corporate governance practices of companies including commercial banks. The choice of pilot organizations is carried out in accordance with the investment potential and financial prospects of companies and banks and their penchant for reform. Selected companies and banks will be able to participate in a broad program to assess their corporate governance practices, consultations on how to improve relationships between authorities and boards, management and shareholders.
The Swiss Economic Relations Secretariat (Seco) will fund the second phase. It has allotted over $4 million.
Official opening of the first phase of the project, initiated by IFC and funded by SECO, took place on January 26, 2005. The implementation will take three years with a total budget of $2.1 million.
The IFC strategy in Azerbaijan is directed at assisting the diversification of private sector through attracting investments and rendering consultation services in education, infrastructure, financial and real sectors. Since 1995 the IFC has invested over $300 million in Azerbaijan.
A-Qroup insurance company has operated in Azerbaijan since 1995 and offers services on three obligatory and 14 voluntary type of insurance.
The company retains leadership in the Azerbaijani insurance market for medical insurance. As for July 1, the company's authorized capital made up 1.55 million manat.
In January to July the company has collected premiums worth 5.03 million manat paying claims at 2.41 million manat.
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