The European Bank for Reconstruction and Development (EBRD) provides financial and other assistance to private companies in former communist bloc countries to aid their transition to market-driven economies and democracy. It operates in 29 countries and is owned by 61 member countries, the European Community, and the European Investment Bank. The EBRD provides loans and financing to banks, industries, and companies, and also offers advice and support to recipient member countries’ governments. It invests and operates in countries such as Turkey, Mongolia, and former USSR member states.
The European Bank for Reconstruction and Development (EBRD) was created in 1991 after the fall of the Berlin Wall and the collapse of the Union of Soviet Socialist Republics (USSR). Its primary mission is to provide financial assistance and other forms of assistance to private companies in former communist bloc countries so that these nations are better able to transition to market-driven economies and democracy. Headquartered in London, the EBRD operates in 29 countries stretching from Central Europe to Central Asia. It is owned by its 61 member countries, the European Community and the European Investment Bank. Recipients include former USSR member states, as well as Turkey and Mongolia.
The EBRD makes loans and provides other forms of financing to banks, industries and companies in its recipient member countries. In addition to the capital provided by receiving members, it has a triple-A (AAA) credit rating and actively issues debt securities in the international financial markets to finance its portfolio of loans and operations. It also provides advice and support to the governments of recipient member countries for policy development and planning related to the privatization and restructuring of state-owned enterprises and the improvement of municipal infrastructure and services.
The bank focuses on raising capital and providing financing tailored to the needs of new or newly established banks and private sector businesses; In general, the EBRD provides what are considered essential services and products that are considered too risky or require investment capital in too large amounts for individual investment and commercial banks to do so. To receive funding from the European Bank for Reconstruction and Development, projects must successfully pass through an extensive process during which each is evaluated on a commercial basis and a decision is made on its commercial viability. Similarly, loans from the European Bank for Reconstruction and Development are commercially priced. The EBRD does not issue export credit guarantees or participate in retail banking.
The European Bank for Reconstruction and Development invests and operates in the following countries: Albania, Armenia, Azerbaijan, Belarus, Bosnia and Herzegovina, Bulgaria, Croatia, Estonia, Macedonia, Georgia, Hungary, Kazakhstan, Kyrgyz Republic, Latvia, Lithuania, Moldova, Mongolia, Montenegro, Poland, Romania, Russia, Serbia, the Slovak Republic, Slovenia, Tajikistan, Turkey, Turkmenistan, Ukraine, and Uzbekistan. The EBRD stopped making new investments in the Czech Republic in 2007, although it continues to manage and administer its investments there. Similarly, it is in the process of terminating its activities in the Baltic states of Estonia, Latvia and Lithuania.
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