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IFC Helps Boards of Georgian Companies Cope with Financial Crisis, Maintain Development


In Tbilisi:
Tamar Barbakadze

Phone: +995 32 23 43 00

E-mail:
TBarbakadze@ifc.org

In Moscow:
Nezhdana Bukova
Phone: +7 495 411 7555
E-mail:
NBukova@ifc.org


Tbilisi, Georgia, November 19, 2009—IFC, a member of the World Bank Group, is training board members of Georgian companies and banks on best practices of performing their duties at times of economic downturn, helping them minimize the impact of crises and maintain stable development.

In cooperation with the Center for Training and Consultancy, IFC today held a one-day workshop in Tbilisi for the board members of Georgian companies and banks. The initiative is a part of IFC’s broader crisis-response initiative focused on strengthening local banks and companies to make them more sustainable.


Along with continuing investing in sectors critical for sustainable development, IFC shaped its advisory programs to better help clients in the crisis. As part of the strategy, IFC is working to improve the competence of the supervisory boards of companies in emerging markets through targeted training.


“When crisis hits, as we are seeing today, the entire board of directors is often called upon to step into the role of crisis managers of the enterprise,” said Davit Karapetyan, IFC’s Corporate Governance Officer. “To address this increasing role, IFC is launching a training program on board oversight of crisis management.”


Experts from a top business school, International Institute for Management Development, shared their first-hand experience about board actions in crisis conditions. The workshop included sessions on types and sources of crises, how to spot crises early, possible consequences in emerging countries, and what boards can do.


IFC, the largest multilateral financial institution investing in the private sector in emerging markets, has launched a broad and targeted set of initiatives to help private enterprises cope with the current downturn.  Worldwide financing for these initiatives is expected to total more than $31 billion over the next three years.  


IFC is the only international financial institution focused exclusively on the private sector, the engine of sustainable development in emerging markets. Along with IBRD, it is currently seeking a capital increase to strengthen its ability to create opportunity for the poor in developing countries—including by establishing new crisis-response programs in risk management to help companies maintain development during the economic downturn.


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 $14.5 billion in fiscal 2009, helping channel capital into developing countries during the financial crisis. For more information, visit
www.ifc.org.