Good Governance May Help Local Firms in Getting IFC Financing

Article excerpt

Byline: FIL C. SIONIL

Domestic firms with good corporate governance will have better chances of accessing cheaper cost of funds to for its capital outlay and other expansion program.

"Many companies in the Philippines are realizing that it pays to promote good corporate governance to gain better access to capital and draw investment premiums," said Vipul Bhagat, IFC country manager for the Philippines and Thailand.

He explained that good governance leads to more transparency in the firmas operations, which, in turn, will be reflected in its balance sheet/financial statements.

Visiting Washington-based IFC Corporate Governance Unit Head Mike Lubrano pitched that borrowing will not only come cheap but more importantly, foreign investors will be captivated by firms strictly adhering to corporate governance.

Lubrano pointed out it is not only about the risk management but also the checks and balances required in the paradigm.

It is stressed that a firm that is well-governed is one that is accountable and transparent to its shareholders and other stakeholders such as employees, creditors, customers and society, at large.

"Good corporate governance wonat just keep companies out of trouble. A commitment to good corporate governance makes a company more attractive to lenders and investors and more profitable," Lubrano said. …