Lima, Peru, February 26, 2015
— The World Bank Group and Switzerland’s State Secretariat for Economic Affairs (SECO) launched a corporate governance advisory project for Peru to help firms improve their performance, access to finance, and overall sustainability
The project will also promote better governance practices, contribute to the sustainability of key corporate governance institutions and strengthen regulations on corporate governance.
The project, which is slated to last at least until end June 2018, seeks to improve Peru’s regulatory framework for corporate governance in light of the implementation of the country’s recently revised corporate governance code.
The project will also help private sector companies, small and medium sized enterprises (SMEs), family-owned companies and state-owned enterprises, including state and municipally owned financial institutions, implement better corporate governance practices that generate greater transparency, accountability, and operational efficiency to help businesses improve their access to capital and enter new markets. Additionally, better corporate governance practices usually lead to sustained growth and profitability of companies, thus allowing them to serve as an engine of economic growth and job creation.
“We are confident that improving the corporate governance practices of companies in Peru will result in stronger, more sustainable firms that will serve as an engine for the sustained economic growth of the country,” said Marc Tristant, country manager for Peru for the International Finance Corporation (IFC), the private sector arm of the World Bank Group.
A key objective will also be to support the strengthening and sustainability of the Corporate Governance Institute of Peru that will offer support and training for board directors in the country and will act as an intermediary to enable effective dialogue between the regulators and the private sector. Other market institutions such as the chambers of commerce, industry associations and universities will also receive the projects support in their corporate governance agendas.
In addition to this advisory project, IFC has promoted good corporate governance at the company level—by assisting its investment clients—and at the country level, through other advisory projects supporting a better investment climate, and by promoting good practice standards and guidelines.
“As an important donor in the area of Corporate Governance, we are pleased that after the successful experience in Colombia, we are now able to expand this important initiative to Peru. It will help to increase investor confidence in Peruvian companies, thus allowing them to grow and to create new and formal jobs,” said Martin Peter, Head of the Swiss Economic Cooperation - SECO in Peru.
This project reinforces the IFC’s commitment to supporting Peru’s sustainable economic growth by improving access to finance for underserved SMEs, who will be better positioned to obtain financing as banks are more likely to provide loans to firms that have solid corporate governance practices. It is also an example of the strong relationship between the World Bank Group and Peru, which will host the World Bank Group’s annual meetings in Lima this year
About the World Bank Group
The World Bank Group is one of the world's largest sources of funding and knowledge for developing countries. It comprises five closely associated institutions: the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA), which together form the World Bank; the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA); and the International Centre for Settlement of Investment Disputes (ICSID). Each institution plays a distinct role in the mission to fight poverty and improve living standards for people in the developing world. For more information, please visit
www.worldbank.org
,
www.miga.org
, and
www.ifc.org
.
About the State Secretariat for Economic Affairs (SECO)
SECO is the center of competence of the Swiss international cooperation for economic development in charge of the planning of economic and trade measures with middle and low-income developing countries as well as with transition countries. Our objective is to promote sustainable economic development and create opportunities in a globalized world. SECO promote the complementarity with other donors in promoting economic stability and sustainable growth. For more information, please visit:
www.cooperacionsuizaenperu.org.pe/seco
,
www.seco.admin.ch
