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Bishkek, Kyrgyzstan, November 26, 2010
—Companies in Kyrgyz Republic need to substantially improve corporate governance to win shareholders’ confidence, reduce the risk of financial crises, and ease access to capital, according to a recent IFC survey. The survey, conducted by the IFC Central Asia Corporate Governance Advisory Services in the Kyrgyz Republic, found that inadequate regulation provides little incentive for companies to improve their corporate governance practices.
“IFC Advisory Services work in many countries around the globe to improve corporate governance and make local companies more transparent and understandable for investors,” said Yulia Holodkova, IFC Central Asia Corporate Governance Project Team Leader in Bishkek. “We would like to offer our expertise to the Kyrgyz government in reviewing the existing corporate governance regulation to eliminate archaic norms and introduce changes and amendments on the basis of the best international corporate governance practices.”
In a survey of 90 joint stock companies, respondents expressed their views on the current corporate governance practices in their respective companies, the level of compliance with existing Kyrgyz legislation, and implementation of best international practices in the field.
“Corporate governance reform in Central Asia is happening in a challenging political and institutional context,” said Sobir Kurbanov, Economic Advisor for the Department for International Development. “A modern, simple and enforceable legal base will help Kyrgyz companies and banks improve corporate performance and organizational efficiency, as well as attract serious long-term investments. Eventually this should contribute to expanded markets and new jobs, and help reduce poverty—all critical to the United Kingdom’s government development objectives in the region.”
IFC Central Asia Corporate Governance Project is implemented under the auspices of the United Kingdom’s Department for International Development and the Netherlands-IFC Partnership Program. To access the survey report, please visit
www.ifc.org/cacgp
.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in developing countries. We create opportunity for people to escape poverty and improve their lives. We do so by providing financing to help businesses employ more people and supply essential services, by mobilizing capital from others, and by delivering advisory services to ensure sustainable development. In a time of global economic uncertainty, our new investments climbed to a record $18 billion in fiscal 2010. For more information, visit
www.ifc.org
.
For more information about the Netherlands-IFC Partnership Program, visit
www.minbuza.nl
.
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