Almaty, Kazakhstan, October 17, 2006
— The International Finance Corporation has announced the launch of the Central Asia Corporate Governance Project.
IFC’s worldwide experience shows that companies with good corporate governance have better access to capital, obtain higher sale prices for their shares, perform better operationally and are less likely to experience fraud.
The project’s objective is to improve corporate governance practices of Kazakhstani joint stock companies, including banks. This objective will be accomplished through seminars and workshops, as well as through direct consultations with joint stock companies on corporate governance best practices. In addition, the project will work with selected joint stock companies to carry out full corporate governance assessments, as well as provide support in implementing the recommended changes.
The project will also provide advice to the government of Kazakhstan to improve the legislative framework related to corporate governance. Additionally, to target needs of the next generation of business leaders, the project will partner with local educational and training institutions to help develop corporate governance curricula. Finally, the project will conduct a public and media education campaign to raise awareness of corporate governance among Kazakhstan’s population and shareholder base.
“Given the success of IFC’s corporate governance technical assistance model designed and refined in other CIS countries, a continuation of the program into Central Asia was the next logical step. We are confident that improved corporate governance will help promote Kazakhstan’s investment climate in both the short and long run”, - commented Gorton de Mond, IFC Regional Representative.
This three year project, which is being implemented and funded by IFC, will initially focus its activities in Kazakhstan, with the possibility of later extending into other Central Asian countries. Implementing and enforcing sound corporate governance systems and practices is essential as the economies and companies of Central Asia work to build investor confidence, revitalize production and further market reforms.
For the editor:
The International Finance Corporation, the private sector arm of the World Bank Group, is the largest multilateral provider of financing for private enterprise in developing countries. IFC finances private sector investments, mobilizes capital in international financial markets, facilitates trade, helps clients improve social and environmental sustainability, and provides technical assistance and advice to businesses and governments. From its founding in 1956 through FY06, IFC has committed more than $56 billion of its own funds for private sector investments in the developing world and mobilized an additional $25 billion in syndications for 3,531 companies in 140 developing countries. With the support of funding from donors, it has also provided more than $1 billion in technical assistance and advisory services. For more information, visit
www.ifc.org
