DUSHANBE, July 29, 2008, Asia-Plus — International Finance Corporation (IFC) has announced the launch of a corporate governance survey as part of efforts aimed at improving corporate governance practices in Tajikistan.
According to Vadim Nigmatov, Communications Associate, IFC Central Asia Corporate Governance Project in Tajikistan, the survey is the first initiative of its kind in Tajikistan and will serve as a reference point to promote corporate governance reforms in the country. The key survey objective is to evaluate current corporate governance practices in joint stock companies, including financial institutions. The survey will assess the extent to which companies follow corporate governance legislation of the Republic of Tajikistan and international best practices. The key areas include commitment to corporate governance, board composition and responsibilities, shareholders’ rights, transparency and financial disclosure.
The survey will be conducted by Research Centre “Zerkalo,” which was selected through a tender process. Zerkalo has been working successfully in the Tajikistan market for 8 years. It is expected that survey results will be available by winter 2008/09.
Good corporate governance practice is essential to gaining investor confidence and developing the private sector. The survey will help to determine the existing level of corporate governance practices among banks and companies and establish the groundwork for future improvements and reform in Tajikistan.
IFC, a member of the World Bank Group, fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing private capital in local and international financial markets, and providing advisory and risk mitigation services to businesses and governments. IFC’s vision is that poor people have the opportunity to escape poverty and improve their lives. In FY07, IFC committed $8.2 billion and mobilized an additional $3.9 billion through loan participations and structured finance for 299 investments in 69 developing countries. IFC also provided advisory services in 97 countries.
Corporate Governance refers to the structures and processes for the direction and control of companies. Corporate governance concerns the relationships among the management, Board of Directors, controlling shareholders, minority shareholders and other stakeholders. Good corporate governance contributes to sustainable economic development by enhancing the performance of companies and increasing their access to outside capital.
