IIC Boosts Corporate Governance in Family Businesses across Latin America and the Caribbean

11/28/2012

Training workshop for IIC clients draws participants from ten countries

Cancún, Mexico, November 28, 2012 — The Inter-American Investment Corporation (IIC) held a corporate governance workshop for small and medium-sized family businesses in Cancún, Mexico, attracting representatives of 17 companies from 10 countries across Latin America and the Caribbean.

The two-day workshop for IIC clients was designed to improve decision-making processes and strategic planning at the business, family, and ownership level, thus promoting business longevity and aiding the succession process. Ten training sessions covered a variety of topics, including family protocols, succession planning, and strategies for successful family businesses.

“Companies with good corporate governance perform better and are overall more sustainable,” noted Carlos Roa, chief of the IIC’s Development Effectiveness Division. “Businesses with sound corporate governance are also more attractive to investors, because there is less reputational risk associated with these kinds of investments.”

Dong Joon Kim, an IIC trust fund officer, added: “During the 1997 Asian financial crisis, better governance structures were a key condition for the Korean government to receive a loan from the International Monetary Fund. Korea has come a long way since then and we are excited to help Latin America and the Caribbean to find their path to success.”

At the closing ceremony, Jacques Rogozinski, the IIC’s general manager, highlighted that multilateral organizations can provide important incentives for companies to adopt better corporate governance practices.

The training workshop is part of a larger IIC effort to promote best practices in corporate governance in the Latin American and Caribbean private sector. It comes as a response to the IIC’s commitments under the Corporate Governance Development Framework, signed by 29 development finance institutions in 2011 to promote corporate governance at companies in which they invest.

The IIC’s corporate governance efforts also include its FINPYME Family Business program, which seeks to disseminate good governance practices and put effective and affordable governance tools and structures in the hands of family-owned businesses. The program organizes governance workshops, trains consultants in Latin America and the Caribbean, promotes relevant research, and offers one-on-one technical assistance to small and medium-sized enterprises. A number of participating companies from the workshop will receive direct technical assistance under the program.

The Cancun workshop received financial support from the Korean government through the Korea-IIC SME Development Trust Fund.

About the IIC

The IIC, a member of the Inter-American Development Bank (IDB) Group, promotes private-sector development in Latin America and the Caribbean with a focus on small and medium-sized enterprises (SMEs). We help companies streamline management processes and provide them with financing in the form of equity investments, loans, and guarantees. In 2011, the IIC reached the symbolic one-billion-dollar mark in disbursements of own and third-party funds. Throughout our history, we have benefited more than 1.6 million SMEs in Latin America and the Caribbean. For more information on the IIC, visit www.iic.org.

Contact: Rebeca Sanchez de Tagle

Telephone: +1 (202) 623 3636

Email: rebecast@iadb.org