EBRD Board adopts crisis response package

EBRD Board adopts crisis response package
# 12 December 2008 07:44 (UTC +04:00)
Baku. Nijat Mustafayev – APA-Economics. The EBRD Board of Directors has approved the 2009 Business Plan and Budget which allows for an increase of the Bank’s annual business volume in 2009 of about 20 per cent to approximately €7 billion. Half of the €1 billion in extra spending are earmarked for central and Eastern Europe.
The increase in funding comes as part of the EBRD’s response to the impact of the global financial crisis on the Bank’s countries of operations.
The Bank’s response will be especially to support the banking sectors in the countries where the EBRD invests and to ensure that financing flows continue, in particular to small and medium sized enterprises. The EBRD will also extend its support to the broader corporate sector.
The crisis response package also includes an expansion of the Bank’s Trade Facilitation Programme which plays a crucial role in keeping trade flowing to and from the region in times of severely restricted access to finance.
EBRD President Thomas Mirow said: “Next year will be extremely tough for many businesses in our region but no matter what happens, the EBRD is open for business. We have sufficient capital, unanimous support of our owners and we intend to invest more than we have ever done before."
Under the package the EBRD will maintain its core operating principles (sound banking, transition impact and additionality) and respond to individual requests on a case-by-case basis to ensure maximum impact of its interventions. The package is not limited to one specific sector of the economy but applicable to all sectors and all the Bank’s countries of operations according to needs, urgency and the Bank’s capacities.
The envisaged increase of the EBRD’s funding in 2009 will be fully financed from the Bank’s reserves. No capital increase or any other additional contributions from the Bank’s shareholders have been requested or are needed.
Since the global crisis has started spreading to the Bank’s region the EBRD has intensified its engagement with its existing clients. It is working closely together with governments in the countries where it invests to address key policy issues.
At the same time the EBRD is also working closely with other international financial institutions to provide support and to collaborate on financing transactions.