Almaty, Kazakhstan, April 17, 2009
—IFC, a member of the World Bank Group, is helping two leading financial institutions in Kazakhstan improve corporate governance practices, which could help strengthen their businesses during a time of financial crisis and make them more attractive for investors.
KazMicroFinance and the Oil Insurance Company have joined IFC’s Central Asia Corporate Governance Program, a project that works with local companies to help them become more sustainable and potentially draw more investment, which is lacking in Kazakhstan. IFC will assess the two companies’ corporate governance practices and develop tailored improvement plans to align them with international best practices.
“Good corporate governance can help Kazak companies better manage challenges and opportunities arising from the global economic crisis,” said Tomasz Telma, IFC Senior Manager for Central Asia. “In times of crisis, investors are more likely to invest in companies that have strong governance.”
IFC will advise and train directors, managers, and key shareholders of each company. Strengthening their governance practices and businesses will also enable the companies to better serve their corporate and retail clients across the country.
Oil Insurance Company is one of the largest insurance companies in Kazakhstan. Each year, it provides a full range of insurance services to more than 50,000 legal entities and 250,000 individuals in Kazakhstan and abroad.
KazMicroFinance is a leader in Kazakhstan’s microfinance market, providing access to financial services to micro and small businesses in rural and urban areas countrywide. The company is currently serving more than 27,000 clients in 22 cities and 464 villages.
The two companies are well-known in the Kazakh market and their efforts to improve corporate governance will serve as role models for other market participants.
Since 2006, IFC has worked to improve the corporate governance practices of companies and banks across Central Asia, helping them enhance operations and increase their ability to attract investment.
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $16.2 billion in fiscal 2008, a 34 percent increase over the previous year. For more information, visit
www.ifc.org
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