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There will still be a lot to do once the crisis is over
Aram Gareginyan, ArmInfo news agency 27.08.10
2010-08-27 19:28:00
Interview with Lars H. Thunnel, Executive Vice President of
International Finance Corporation
Lars H. Thunell, a Swedish national, is Executive Vice President and
CEO of IFC (International Finance Corporation), a member of the World
Bank Group. Mr. Thunell is leading IFC in its mission to promote
sustainable private sector development. Since joining the Corporation
in January 2006, Mr. Thunell has advanced growth of IFC's business and
its mission to create opportunities in emerging markets and improve
people's lives. He has visited 76 countries, including 60 developing
countries, to see firsthand how IFC can best help its clients with
financing and advisory services. He has endorsed further
decentralization of IFC. Mr. Thunell graduated with a doctorate from
the University of Stockholm and was a research fellow at the Harvard
University Center for International Affairs.
Can you please talk about the strategic priorities for IFC in Armenia?
I think Armenia has been having a very tough time, and the strategic
priority over the last couple of years has been helping the country
and its people to get through the crisis. That's why we have stepped
up and increased our presence significantly. We have focused on things
that are important to support - the management of the crisis through
the banking sector and real estate projects. But we are also looking
forward, that's why we invest in mining and energy. Going forward, I
think you will see similar strategy, as the banking sector is very
important as a source of vitality, ensuring supply for any economy.
But it's also a task for us to reach small and medium size
enterprises, which are the backbone for any economy. Apart from
investment activities, we also work a lot on the advisory side. We
work with the Government on simplification of business regulation.
Another area that is important here is infrastructure. Other areas we
have been working on which are important to us from crisis perspective
but also going forward is the real estate sector, the most obvious
case being the recent financing of construction of Elite office
building. And then, I think, there are two sectors in which Armenia
has opportunities. There is mining sector, where the country could
secure sustainable development, and there is the whole area of
agriculture. In a large sense - not only farming, but also the entire
production and logistics chain including quality standards. We think
that we can bring something to the country, and through my meetings
with the Government I've witnessed the determination to improve
performance in those sectors. You know that our function is not only
bringing money, but also best practices and value added knowledge.
We're focusing very much on good governance, transparency, best
practices in accounting and so on. Anything we do, in any sector, is a
very important part of our partnership strategy.
IFC has invested in one mining project in Armenia so far. Do you think
it has been a success, and could it be followed by investment in other
mining companies?
Definitely yes.
Can we focus a little more on climate change and the efforts of IFC to
address this issue in the region and in Armenia in particular?
First of all it's a very important part of our strategy, as we all
live on the same planet. And what is also important, and we've seen
that in the crisis, that it has not been a question of either-or - it
can be, especially with our energy efficiency program, a win-win, in
the sense that you can go have an effect on climate change and save
money. Actually the cheapest way to save energy and costs is to be
more energy efficient. This is of course critical for any country, but
on top of that, Armenia has a lot of hydropower. That's again a
win-win, both locally and globally. Climate change prevention
practices may also apply to agricultural sector. There's a lot of
opportunities there, because there's not only the question of
mitigation of carbon emissions - we've seen the crisis around the
world, and the response to it must not be inadequate, like cutting
down all the forests and turning the rivers in a wrong way, etc. So I
think in that area too there may be a lot of opportunities.
As we know IFC complements its investment activities in Armenia with
advisory work. Could you please specify the areas of IFC advisory
projects in the country?
In Armenia we have three areas. First is Doing Business reform and
regulation simplification, where we look at typical issues faced by
local businesses - in registering, working with the tax office and
doing the custom clearance of their goods. We try to find strategies
to simplify all those steps. Second project is sustainable energy, and
here we try both to look at the energy efficiency potential and how to
unlock it in Armenia, and to develop renewable energy, which is one of
the competitive advantages and priorities for Armenia. The third
project comes as a response to financial crisis. It's aiming to work
with banks, helping them to manage the consequences of the crisis, to
work out the non-performing loans and improve their risk management.
Do you think Armenia has been doing well on Doing Business ranking and
in enforcing reforms on which it depends?
Absolutely. Certainly Georgia is one of regional leaders, but it's
also good to look at the neighbors. There can be a sort of local
competition, which in this case is very positive. To recognize this
importance, one goes back to the changes, which are brought about by
more simple regulations, more transparency, open society and access to
the markets.
How would you assess IFC's recent achievements in Europe and Central
Asia? Which of them could be applied in Armenia?
When I think of any of the things I've talked about, of all the areas
where we've had programs, I see that it's not a one-way traffic. For
instance, the area of NPL management for banks is one where we have
advantage, and we have introduced some special programs in that field
in Eastern Europe. Another area of experience may have been credit
financing, and yesterday we've launched a program of that kind with
one of Armenian commercial banks. We've also talked with the
government about the insurance in many areas, which is mostly in early
stages here. That's what IFC is about: learning on the local
experience of different countries, spreading that knowledge to others,
improving it and bringing it back. That's how we work: combining local
and global knowledge, and then adapting it to the local environment.
Thank you
From: A. Papazian
Aram Gareginyan, ArmInfo news agency 27.08.10
2010-08-27 19:28:00
Interview with Lars H. Thunnel, Executive Vice President of
International Finance Corporation
Lars H. Thunell, a Swedish national, is Executive Vice President and
CEO of IFC (International Finance Corporation), a member of the World
Bank Group. Mr. Thunell is leading IFC in its mission to promote
sustainable private sector development. Since joining the Corporation
in January 2006, Mr. Thunell has advanced growth of IFC's business and
its mission to create opportunities in emerging markets and improve
people's lives. He has visited 76 countries, including 60 developing
countries, to see firsthand how IFC can best help its clients with
financing and advisory services. He has endorsed further
decentralization of IFC. Mr. Thunell graduated with a doctorate from
the University of Stockholm and was a research fellow at the Harvard
University Center for International Affairs.
Can you please talk about the strategic priorities for IFC in Armenia?
I think Armenia has been having a very tough time, and the strategic
priority over the last couple of years has been helping the country
and its people to get through the crisis. That's why we have stepped
up and increased our presence significantly. We have focused on things
that are important to support - the management of the crisis through
the banking sector and real estate projects. But we are also looking
forward, that's why we invest in mining and energy. Going forward, I
think you will see similar strategy, as the banking sector is very
important as a source of vitality, ensuring supply for any economy.
But it's also a task for us to reach small and medium size
enterprises, which are the backbone for any economy. Apart from
investment activities, we also work a lot on the advisory side. We
work with the Government on simplification of business regulation.
Another area that is important here is infrastructure. Other areas we
have been working on which are important to us from crisis perspective
but also going forward is the real estate sector, the most obvious
case being the recent financing of construction of Elite office
building. And then, I think, there are two sectors in which Armenia
has opportunities. There is mining sector, where the country could
secure sustainable development, and there is the whole area of
agriculture. In a large sense - not only farming, but also the entire
production and logistics chain including quality standards. We think
that we can bring something to the country, and through my meetings
with the Government I've witnessed the determination to improve
performance in those sectors. You know that our function is not only
bringing money, but also best practices and value added knowledge.
We're focusing very much on good governance, transparency, best
practices in accounting and so on. Anything we do, in any sector, is a
very important part of our partnership strategy.
IFC has invested in one mining project in Armenia so far. Do you think
it has been a success, and could it be followed by investment in other
mining companies?
Definitely yes.
Can we focus a little more on climate change and the efforts of IFC to
address this issue in the region and in Armenia in particular?
First of all it's a very important part of our strategy, as we all
live on the same planet. And what is also important, and we've seen
that in the crisis, that it has not been a question of either-or - it
can be, especially with our energy efficiency program, a win-win, in
the sense that you can go have an effect on climate change and save
money. Actually the cheapest way to save energy and costs is to be
more energy efficient. This is of course critical for any country, but
on top of that, Armenia has a lot of hydropower. That's again a
win-win, both locally and globally. Climate change prevention
practices may also apply to agricultural sector. There's a lot of
opportunities there, because there's not only the question of
mitigation of carbon emissions - we've seen the crisis around the
world, and the response to it must not be inadequate, like cutting
down all the forests and turning the rivers in a wrong way, etc. So I
think in that area too there may be a lot of opportunities.
As we know IFC complements its investment activities in Armenia with
advisory work. Could you please specify the areas of IFC advisory
projects in the country?
In Armenia we have three areas. First is Doing Business reform and
regulation simplification, where we look at typical issues faced by
local businesses - in registering, working with the tax office and
doing the custom clearance of their goods. We try to find strategies
to simplify all those steps. Second project is sustainable energy, and
here we try both to look at the energy efficiency potential and how to
unlock it in Armenia, and to develop renewable energy, which is one of
the competitive advantages and priorities for Armenia. The third
project comes as a response to financial crisis. It's aiming to work
with banks, helping them to manage the consequences of the crisis, to
work out the non-performing loans and improve their risk management.
Do you think Armenia has been doing well on Doing Business ranking and
in enforcing reforms on which it depends?
Absolutely. Certainly Georgia is one of regional leaders, but it's
also good to look at the neighbors. There can be a sort of local
competition, which in this case is very positive. To recognize this
importance, one goes back to the changes, which are brought about by
more simple regulations, more transparency, open society and access to
the markets.
How would you assess IFC's recent achievements in Europe and Central
Asia? Which of them could be applied in Armenia?
When I think of any of the things I've talked about, of all the areas
where we've had programs, I see that it's not a one-way traffic. For
instance, the area of NPL management for banks is one where we have
advantage, and we have introduced some special programs in that field
in Eastern Europe. Another area of experience may have been credit
financing, and yesterday we've launched a program of that kind with
one of Armenian commercial banks. We've also talked with the
government about the insurance in many areas, which is mostly in early
stages here. That's what IFC is about: learning on the local
experience of different countries, spreading that knowledge to others,
improving it and bringing it back. That's how we work: combining local
and global knowledge, and then adapting it to the local environment.
Thank you
From: A. Papazian