Institute of International Finance Proposes Reforms IIF's Equity Advisory Group Releases Report
The legal and institutional framework for corporate governance in Turkey has improved significantly in the last few years. Nevertheless, a report released today by the Institute of International Finance (IIF) finds that new steps are needed by the country's government and regulatory authorities to secure compliance and enforcement of essential rules and regulations.
The IIF, the global association of financial institutions with 340 members, established an Equity Advisory Group (EAG) in 2001 that has been reviewing the state of corporate governance in the leading emerging market economies. EAG Chairman Edward Baker, Chief Executive Officer and Chief Investment Officer of Emerging Markets Equities, Alliance Capital, Ltd., who headed a Task Force that reviewed conditions in Turkey, stated that, "The legal and institutional framework for corporate governance in Turkey has improved, especially in recent years, in parallel with the structural reforms carried out in cooperation with the IMF. However, some problem areas remain and we would like to see the authorities build on the substantial platform that is now in place."
Mr. Baker said, "In our assessment, corporate governance in Turkey could be strengthened further by making compliance with the Capital Markets Board (CMB) Principles mandatory where similar laws and regulations do not already exist. The Turkey Task Force believes that the protection of minority shareholders' rights is crucial to fostering investment and that voluntary guidelines are insufficient to push corporate governance practices to the extent needed to lower the cost of capital and attract both foreign and domestic investment."
See full Press Release.
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