Azerbaijan, Baku, Feb. 8 / Trend N. Ismayilova /
The International Finance Corporation (IFC), a member of the World Bank, began to assess the corporate governance practice at Azerbaijani Rabitabank. It was chosen as a pilot bank within the project of implementing the standards of Corporate Governance in Azerbaijan (ACGP), ACGP head Caroline Bright said.
"The activities in the area of improving the corporate governance standards in the bank will be completed in autumn," she said.
A plan to bring the standards of governance in line with international practice will be offered to Rabitabank with technical assistance.
IFC experts will consult the shareholders, the supervisory board, and management of the bank. They will review corporate documentation, procedures and regulations.
The project of IFC's corporate governance has been operating since 2005. It aims to assist local companies and banks at optimizing the work and increasing opportunities to attract funding and investments.
Rabitabank is a long-time partner of IFC. In 1997 Rabitabank was among the first financial institutions to receive a credit line from IFC. Over the last years, the partnership has expanded into several credit lines and advisory services to the bank. On Sept. 30 2010, Rabitabank and IFC signed a shareholder agreement for IFC to purchase 12.5 percent and one share of the bank.
Rabitabank, a commercial bank, has been operating in Azerbaijan since 1993. As of the end of the third quarter of 2010, total assets of the bank amounted to 116 million manat while the total capital was 16 million. Rabitabank provides a full range of financial services to its retail and corporate clients through a network of 20 branches, including 14 in the regions of Azerbaijan and 6 in the city of Baku.
IFC, a member of the World Bank Group, is the largest global development institution that is focused on the private sector in developing countries. IFC creates an opportunity for people to escape poverty and improve their lives by providing financing to help businesses employ more people, and to supply essential services by mobilizing capital from others by delivering advisory services to ensure sustainable development. At a time of global economic uncertainty, new investments from IFC climbed to a record $18 billion in fiscal 2010.
The IFC Corporate Governance Project (ACGP) has been operating since 2005.
The official opening of the ACGP project, initiated by IFC and funded by Seco, was held on Jan. 26, 2005. Implementing the first phase of the project was designed for three years with a budget of $2.1 million.
Seco took funding for the second phase of the project completely on itself and allocated $4 million for its realization.
The project assists in the introduction of corporate governance standards in accordance with the rules of the Organization for Economic Cooperation and Development (OECD).
The official exchange rate is 0. 7961 manat to $1.