Azerbaijan, Baku, Oct. 29 / Trend I. Khalilova /
The International Finance Corporation (IFC) is considering the possibility of including Azerbaijani Rabitabank into a number of pilot companies within the second phase of the technical assistance program to introduce modern corporate governance standards in the country, the project manager Caroline Bright said.
It was reported that the main emphasis will be placed on a non-bank private sector when selecting companies within the second phase of the project.
"The decision on a new pilot company will be made by late 2010," Bright said.
Within the second phase, four pilot organizations have already been selected - Turan Bank, CredAgro non-banking credit organization, A-Qroup Insurance Company and AzMeCo.
Participation in the pilot program of the second phase will be paid, unlike the first. Payment will depend on the volume of work. This change was made to ensure loyalty to the participation of private companies and banks in the ACGP program.
The Swiss State Secretariat for Economic Affairs SECO undertook financing the second phase, allotting more than $4 million to implement the program.
The project on corporate governance helps in applying standards of corporate governance in accordance with the rules of the Organization for Economic Cooperation and Development (OECD).
Official opening of the first phase of the project, initiated by IFC and funded by SECO were held on Jan. 26, 2005. This phase with total budget of $2.1 million will take three years to complete.
IFC jointly with the European Bank for Reconstruction and Development (EBRD) signed an agreement to acquire a stake in Rabitabank on September 30, 2010. IFC and EBRD acquired a stake equal to 25 percent a share, on 12.5 percent each. The total sum was 4 million manat.
Rabitabank is a commercial bank functioning in Azerbaijan since 1993.
Rabitabank's controlling stake (86,1 percent) was belonged to Zakir Nuriyev, Chairman of Rabitabank's Supervisory Board.
The bank's assets amounted to 116 million manat and capital - 16 million manat at the end of the third quarter of 2010. At present, the bank's branch network includes 20 branches and offices, six of which are located in Baku, and 14 - in regions.
Rabitabank became the fourth bank in Azerbaijan, in which IFC will acquire a stake. There are 23 banks with foreign capital in Azerbaijan.
On Oct. 29, the official exchange rate is 0.8007 manat to $1.