The IFC Azerbaijan Corporate Governance Project, which operated from 2005 to 2011, advised companies and banks on improvements to their corporate governance systems and promoted best practices nationally. The IFC project supported the government of Azerbaijan in developing new corporate governance legislation, including the National Corporate Governance Standards, and helped educational institutions to incorporate corporate governance coursework into their curricula.
IFC worked with 13 companies and banks on comprehensive assessments of corporate governance practices, drafting or revising nearly 200 corporate documents, and helping to implement governance recommendations. The project held 71 seminars and 98 workshops along with 11 training events for journalists. These efforts led to more than $138 million in increased investment in these entities. The pilot firms reported improved performance as a result of enhanced corporate governance practices. This includes streamlined operations, better defined roles, and reputational benefits and reduced cost of capital.
The IFC Azerbaijan Corporate Governance Project was run in partnership with the Swiss Secretariat of Economic Affairs, SECO.
Results and impact :
$138 million invested as a result of improved CG practices
32 companies reported improved performance
Eight educational institutions improved or introduced CG courses
Seven laws, regulations, or CG codes were passed
Azerbaijan joined IFC in 1995. As of September 30, 2011, IFC had a committed portfolio in Azerbaijan of $139 million. IFC supports diversification of the country’s economic base, and sustainable growth in the non-oil economy.
“What I like about IFC's Corporate Governance methodology is that it is not just about the management board. It is about everyone. My hope is promoting better corporate governance practices not only will help Turan Bank and its customers, but Azerbaijan's society as a whole.”
- Fuad Musayev, Chairman of the Supervisory Board of Turan Bank