DUSHANBE, October 24, Asia-Plus — International Finance Corporation (IFC) Tajikistan Tuesday announced in Dushanbe the launch of the Central Asia Corporate Governance Project in Tajikistan.
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.
Mr. Karl William Bach, Project Manager, IFC Central Asia Corporate Governance Project, said that the project’s objective is to improve corporate governance practices of Tajikistan’s 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,” the project manager said.
According to Karl William Bach, a number of competitively selected banks and companies will participate in a pilot programs aimed at development of their corporate practice.
The project will also provide advice to the Tajik government 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 Tajikistan’s population and shareholder base.
Mr. Mathew Scanlon, Investment Office, IFC Tajikistan, noted that the launch of the corporate governance project is Tajikistan is a result of logical extension of the IFC Central Asia Corporate Governance Project that started in Kazakhstan in 2006.
The project has helped companies in more than 80 countries improve their corporate governance practice, Mr. Scanlon said.
Jouma Eshov, the deputy head of the National Bank of Tajikistan (NBT), holds that implementation of the project will promote modernization of corporate governance of banking system and joint-stock companies in the republic.
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. In 2007, IFC invested $8.2 billion and mobilized an additional $3.2 billion in form of participation in 299 projects in 69 countries with transition and developing economies.
