Azerogasbank ranks 1st in pilot program of IFC on corporative governance

Business Materials 27 January 2006 15:17 (UTC +04:00)

The International Finance Corp. (IFC) selected the first pilot company within the program on technical assistance in the application of modern corporative governance standards. IFC have allocated two loan lines to Azerigasbank to develop small and middle-seize business, Charles Kenfild, the head of the project, told Trend. He also participated in two projects on technical assistance in establishment of interbank structure, determination of loan policy, estimation of risks, holding of monitoring portfolio.

IFC chose just Azerigasbank due to banks tendency to improvement of experience in the corporative governance.

According to Kenfild, the bank developed internal regulations and normative acts on regulation of corporative governance. IFC plans to estimate the level of the current corporative governance within the pilot project. Besides, the corporation will give consultations to Azergasbank on improvement of corporative governance and render aid in bringing its documents into one line with corporative standards, as well as preparation of transparent and full financial reports.

Kenfild stressed that IFC would prepare proposals for the Azerigasbank after study of the methodological preparation of the bank and its experience.

The Financial Corp. intends to render technical assistance to 6 joint-stock companies and banks within the pilot program, announced in October 2005, to apply corporative governance standards in accordance with the IFCs methodology. Criteria of selection is statute of the organization as joint-stock company, existence of corporative governance structure (observation board, board of directors and general meeting) and interest in increase of its quality. The assistance, including, estimation of corporative governance, consultations and measures on increase of financial transparency, will be rendered by beneficiaries in queue order.

The project of corporative governance helps application of corporative governance standards in accordance with the norms of the Organization for Economic Cooperation and Development (OECD) and under the financial support of SECO.