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European Bank for Reconstruction and Development |
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European Bank for Reconstruction and Development was established in 1991. The European Bank for Reconstruction and Development has 61 members and 2 intergovernmental institutions. It mainly invests in private enterprises to build market economies and democracies in the Central European countries and Central Asian countries.
European Bank for Reconstruction and Development (EBRD) provides finances to projects relating to banks, industries and businesses. It also invests in existing companies and public companies to help privatization. It works with public sectors to improve the municipal services.
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The directive of EBRD states that the bank is committed to only democratic countries. The EBRD promotes environment friendly and sustainable development in central and Eastern Europe and central Asia.
The investments of European Bank for Reconstruction and Development help the member country to gain full market economy and sound banking system. Through its investments the European Bank for Reconstruction and Development supports sectoral reforms, privatization, strong financial institution, infrastructural development of the private sectors, strong legal systems and strong corporate governance. The European Bank for Reconstruction and Development also encourages foreign direct investments
and mobilizes domestic capital. The European Bank for Reconstruction and Development provides technical support. The EBRD has devised mechanisms to maintain integrity and fight corruption.
The sectors financed by EBRD are
- Energy efficiency
- Natural resources
- Financial institutions
- Property and tourism
- Manufacturing
- Municipal and environmental infrastructure
- Transport
- Power and energy
- Agriculture
- Telecommunications, information technology and media
EBRD provides 5 million euro to 250 million euro in the forms of loans and equity on private sector projects. On an average EBRD invests 25 million euro per year. Smaller projects are financed through financial intermediaries or smaller direct investments mainly in less developed countries. The EBRD funds 35% of the total cost of the project. The projects that are located in its area of operation and has strong commercial prospects benefiting the local economy finds priority in EBRD funding.
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