May 12 (Reuters) - The European Bank for Reconstruction and
Development holds its annual meeting in London on May 15 and 16
and will assess the impact of the credit crunch and global
financial crisis on emerging Europe
Following is a brief profile of the EBRD:
* WHAT IS THE EBRD?
-- Owned by 61 countries, the European Union and European
Investment Bank, the EBRD says it is the largest single
financial investor in central and eastern Europe, mobilising
significant foreign direct investment beyond its own financing.
-- Its investments have helped drive the region's transition
from communism and growth of sectors ranging from telecoms to
banking, also generating profits for the bank itself which it
has funnelled back into reserves and investment.
-- It plans to invest a record 7 billion euros ($9.53
billion) in the region in 2009, and is contributing loans and
investment to a 24.5 billion euro ($33.34 billion) two-year
package for the region, with other multilateral lenders.
-- It invests mainly in private enterprises, usually
together with commercial partners.
-- Investments include project financing for banks,
industries and businesses, both new ventures and investments in
existing companies.
-- It also works with publicly-owned companies to support
privatisation, restructure state-owned firms and improve
municipal services.
-- The bank is tasked with using its close relationship with
governments in the region to promote policies that will bolster
the business environment.
* HOW IS THE EBRD FUNDED?
-- The EBRD has subscribed capital totalling 20 billion
euros ($27.21 billion). This includes five billion euros already
paid-in and 15 billion euros available on demand.
-- Donor funding for the EBRD from 1991 to the end of 2008
reached a cumulative total of 1.9 billion euros ($2.53 billion).
There are 36 donors in total and the largest contributor is the
European Union. Other key providers are Italy (including through
the Central European Initiative), Japan and the United States.
There were 432 donor-funded projects in 2008.
-- Total funding committed in 2008 amounted to 82 million
euros ($109.2 million).
-- The strength of the Bank's capital and backing is
reflected in an AAA credit rating from Standard & Poor's, Aaa
from Moody's and AAA from Fitch.
-- The EBRD finances project lending and operational needs
by borrowing funds on the international capital markets.
* SOME HISTORY:
-- The EBRD was set up in 1991 when communism was crumbling
in central and eastern Europe and ex-soviet countries needed
support to nurture a private sector in emerging democracies.
-- In 1996, Bosnia and Herzegovina became the EBRD's 60th
shareholder member and 26th European country of operation
-- Shareholders in 1996 unanimously agreed a doubling of the
EBRD's capital base to 20 billion euros.
-- In 2004, eight EBRD countries -- Czech Republic, Estonia,
Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia,
became members of the European Union.
-- In 2006, the EBRD's new 5-year strategy shifted the focus
of operation east and southeast and said the eight EBRD
countries also in the EU would "graduate" from the EBRD by 2010.
-- Mongolia was accepted as a country of operation --
recipient of funds -- in 2006.
-- The Czech Republic "graduated" from the EBRD in 2007,
having achieved an advanced stage of transition, and the country
stopped being a recipient of EBRD funds.
-- There was some discussion in the European Union in 2008
as to whether the EBRD should merge with the EIB, as much of its
work appeared to be done.
-- Turkey joined as a country of operation in 2008, bringing
the total to 30.
-- The EBRD developed crisis-response packages for the
region in Jan 2009
-- As the crisis deepened, the EBRD cut its 2009 growth
forecasts in Jan 2009, to 0.1 percent growth from a 2.5 percent
growth forecast made in Nov 2008.
-- The EBRD then slashed those forecasts again in May 2009,
to indicate a 5.2 percent contraction for 2009 as a whole.
SOURCES: Reuters News/EBRD
(David Cutler, Editorial Reference Unit, and Carolyn Cohn)
