Ulaanbaatar, October 9, 2012
—IFC, a member of the World Bank Group, is helping Mongolia develop a corporate governance scorecard as a benchmarking tool that will help improve business competitiveness and boost investors confidence.
In partnership with Mongolia’s Financial Regulatory Commission and the Corporate Governance Development Center, IFC is hosting today the “Corporate Governance in Mongolia: Opportunities and Challenges” roundtable which will gather over 80 entrepreneurs, government officials, and international experts in Ulaanbaatar.
An important goal of the roundtable is to design a scorecard which will allow investors, regulators, and entrepreneurs assess Mongolian companies' compliance with corporate governance best practices. The scorecard will be structured to benchmark local corporate governance measures and regulations against global best practices.
“The legal framework for corporate governance in Mongolia has been significantly improved,” said Jigjid Unenbat, Executive Director at the Corporate Governance Development Center. “But law enforcement and detailed guidelines should be in place soon in order to effectively enhance financial transparency, managerial accountability, and shareholder value.”
With IFC’s help, the Mongolian parliament adopted a new Law on Companies in 2011, which introduced stronger corporate governance regulations such as protecting shareholders’ rights and improving corporate transparency.
“Good corporate governance is most needed in emerging markets like Mongolia to ensure local businesses are efficient and receive better access to financing.” said Rachel Robbins, IFC’s Vice President and General Counsel. “IFC is keen to fill the gaps by supporting firms financially and sharing knowledge in order to contribute to Mongolia’s sustainable economic growth.”
IFC's experience shows that using corporate governance scorecards not only helps international investors evaluate new and existing investments, but also accelerates reforms at the company and regulatory levels.
In partnership with Japan and the Netherlands, IFC’s Mongolia Corporate Governance Program has organized training and consultations for more than 270 Mongolian companies and banks since 2009.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. In FY12, our investments reached an all-time high of more than $20 billion, leveraging the power of the private sector to create jobs, spark innovation, and tackle the world’s most pressing development challenges. For more information, visit
www.ifc.org
.
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About CGDC
Corporate Governance Development Center is a membership-based professional training and research institution established in June 2009 to advance corporate governance practices in Mongolia. It actively cooperates with the Financial Regulatory Commission and National Development and Innovation Committee in reforming Mongolia’s business regulatory environment. For more information, visit
www.cgdc.org.mn
.
