The Role of Creditors as Stakeholders Dr. J.P. Méan Third South Eastern Europe Corporate Governance...
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The Role of Creditors as The Role of Creditors as Stakeholders Stakeholders Dr. J.P. Méan Dr. J.P. Méan Third South Eastern Europe Corporate Third South Eastern Europe Corporate Governance Roundtable Governance Roundtable - Z - Z agreb, 21-22 agreb, 21-22 November 2002 November 2002
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Transcript of The Role of Creditors as Stakeholders Dr. J.P. Méan Third South Eastern Europe Corporate Governance...
The Role of Creditors as StakeholdersThe Role of Creditors as StakeholdersDr. J.P. MéanDr. J.P. Méan
Third South Eastern Europe Corporate Governance Third South Eastern Europe Corporate Governance
RoundtableRoundtable - Z - Zagreb, 21-22 November 2002agreb, 21-22 November 2002
What is the EBRD?What is the EBRD?
IFI, founded 1991, 62 shareholders
Operations : 27 countries East Europe, former USSR
Committed €19.6 bn for 850 projects
Capital base €20 billion
0
5
10
15
20
95 96 97 98 99 00 01 02Cumulative commitments
€19.6 billion
Unaudited June 2002
0
2
4
6
8
10
12
14
16
18
20
Project portfolioProject portfolio€ billion
Private sector
State sector
17.3
6.0
14.0
5.6
10.5
3.2
936 approved projects
850 signed projects
Disbursements
Unaudited June 2002
Attracting third party financing Attracting third party financing triples EBRD’s investmenttriples EBRD’s investment
Resources mobilised€44.4 billion
EBRD financing €19.6 billion
Total project value €64.0 billion
Unaudited June 2002
EBRD commitments by facility typeEBRD commitments by facility type
State loans 36%
Equity 18%
Guarantees, etc 2%
Private loans 44%
Unaudited June 2002
What are the EBRD’s objectives?What are the EBRD’s objectives?
Transition to free markets
A better investment climate
Good corporate governance
Environmentally sustainable development
OECD PrinciplesOECD Principles
Respect of rights protected by law
Effective redress
Performance-enhancing mechanism, esp.
insolvency
Access to information
Integrity due diligenceIntegrity due diligence
Criminal activities
Dealings with government
Corporate affairs - Good governance
Corporate governanceCorporate governance
Articles of Association
Transparent shareholding structure
Minority protection
Shareholders’ registry
Shareholders’ relations and information
Division of authority
Covenants (1)Covenants (1)
Accounting principles and auditors
IAS
Auditors acceptable to Bank
Direct communication with auditors
Covenants (2)Covenants (2)
Information
Quarterly statements
Project progress reports
Details of contractors
Transactions with affiliates and shareholders
Covenants (3)Covenants (3)
Information (cont’d)
Annual statements
Report on environmental, health and safety
Communications with shareholders
Right to visit the project
Good governance is good practiceGood governance is good practice
Many losses due to governance issues
Too big to fail ?
The post Enron auditor
The Role of Creditors as StakeholdersThe Role of Creditors as StakeholdersDr. J.P. MéanDr. J.P. Méan
Third South Eastern Europe Corporate Governance Third South Eastern Europe Corporate Governance
RoundtableRoundtable - Z - Zagreb, 21-22 November 2002agreb, 21-22 November 2002
