Azerbaijan, Baku / corr Trend I.Khalilova / The Azerbaijani project on corporate governance has, in line with necessary standards, completed the assessment of three pilot companies, Azeriqazbank, AZEL and Mugan Bank to improve corporate governance, reported Charles Canfield, the Project Manager.
IFC has already carried out assessments of Mugan Bank jointly with the Azerbaijan Banking Training Center. A total of five pilot companies have participated in this project. The assessment is still in progress at Deveci Broyler, whilst Azerkredit Bank has not yet commenced. The application of recommendations on the conduct of standards of corporate governance in line with advanced experience has been launched in all companies, where the assessment has completed.
Canfield has noted a difference in the banks which apply corporate governance standards. "The approach changes depending upon the number of shareholders and their structures," he stressed.
He stated that corporate governance in the banking sector in Azerbaijan is at a higher level rather other sectors. Furthermore companies boosted their interest to improve the corporate governance and this interest is not observed only in the private sector, but also in the public sector. For instance, the Ministry of Economic Development has established a department for corporate governance.