IFC Assesses Level of Corporative Management in Azerbaijan

Business Materials 6 April 2007 14:25 (UTC +04:00)
IFC Assesses Level of Corporative Management in   Azerbaijan

Azerbaijan, Baku / corr. Trend U.Ismaylova / Research of the International Finance Corporation (IFC) has revealed that the corporative management in the banking system of Azerbaijan has developed better than those in other commercial enterprises. IFC held a survey in co-operation with the Federal Department for Economic Affairs of Sweden (SECO). The survey was conducted by Sigma Company. The program of survey of banks and enterprises covers year 2005. The IFC held the survey with 1,800 enterprises of Baku, Sumgayt, Khachmaz, Lenkaran and 34 banks of Baku.

The IFC considers that the banks and enterprises need to ensure the transparency of financial indicators, the protection of stakeholders' rights, qualification of the management and union of observers and qualification of civil specifics.

One of the indicators of the corporative management development level of the companies is the conduct of the internal audit. As a result of the survey, 91% of the banks in Azerbaijan hold an internal audit. 12% of the non-banking organizations do not hold internal audits. According to the legislation of Azerbaijan, the authorized capital of the banks should amount to AZN 10 mln and open stock companies AZN 4 mln. Participation of foreign investments in banks equals 15% and in open stock companies 4%.

The International Finance Corporation is one of the organizations of World Bank Group which allocates investments for the private sector. The Corporation has been providing assistance to the economy of Azerbaijan since 1995 and has allocated credits in amount of $465 mln.