EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT

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The European Bank for Reconstruction and Development (EBRD) is an international financial institution that was established in 1991 to support the transition to a market economy in the countries of Central and Eastern Europe, Central Asia, Mongolia and the Southern and Eastern Mediterranean region.

The bank finances projects mainly in the private sector and to a lesser extent in the public sector. The EBRD has 67 members, including two multilateral institutions, the European Union and the European Investment Bank. Projects financed by the EBRD have a significant component of local development, fostering the green transition and promoting digital transformation.

The Bank has an important role in nuclear safety in the region and lending to the financial sector represents 32% of the EBRD's overall lending portfolio.

The EBRD can bring a number of benefits to an entrepreneur, including

1. Funding: The EBRD offers loans and credit lines to support projects in key sectors, including infrastructure, energy, industry and finance. These loans can help entrepreneurs obtain the capital needed to carry out their projects.
2. Advice: The EBRD offers advice and technical support to the companies and projects it finances, which can help entrepreneurs develop their businesses and overcome obstacles.
3. Access to business networks: As an international organisation with a wide geographical presence, the EBRD can connect entrepreneurs with business networks and opportunities in other countries.
4. Promoting sustainable development: The EBRD focuses on financing projects that promote sustainable development, which can help entrepreneurs build more environmentally and socially responsible businesses.
5. Connection with other investors: The EBRD can act as a magnet for other investors, which can help entrepreneurs attract additional investment for their projects.

Some practical examples of how the EBRD helps entrepreneurs are:

1. Loans to improve energy efficiency: The EBRD has financed projects to improve energy efficiency in buildings and businesses in several countries in Europe and Central Asia, offering loans at favourable interest rates to help entrepreneurs make their businesses more sustainable and reduce their energy costs.
2. Support for companies in crisis: The EBRD has worked with companies in financial difficulties to help them overcome the crisis and return to profitability. For example, in Ukraine, the bank has worked with a food company to help it restructure and improve its operations, and in Turkey, it has provided financing and advice to a textile company to help it recover from the economic crisis.
3. Financing for small and medium-sized enterprises (SMEs): The EBRD has set up SME financing programmes in several countries in Europe and Central Asia, offering loans at lower interest rates and longer maturities than local banks. This has helped many companies to expand and create jobs.
4. Support for regional trade: The EBRD has worked to promote trade between the countries of Europe and Central Asia, financing infrastructure projects such as roads and railways, and providing finance to companies to help them export to new markets. This has enabled many companies to expand their operations and increase their sales.

In a nutshell, the EBRD has provided a variety of tools and resources to help entrepreneurs expand and improve their operations in Europe and Central Asia.

From loans at favourable interest rates to advisory programmes and regional trade support, the bank has worked to help businesses grow and prosper.

How can an entrepreneur access the benefits of berd?

TO ACCESS THE BENEFITS OF THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT (EBRD), AN ENTREPRENEUR MUST MEET CERTAIN REQUIREMENTS AND FOLLOW CERTAIN STEPS:

1. Check whether your project meets the EBRD's eligibility requirements: The EBRD finances projects mainly in the private sector and to a lesser extent in the public sector, with a significant local development component, fostering the green transition and promoting digital transformation. It is important to check whether the project meets the bank's eligibility criteria.
2. Contact the EBRD team in your country of operations: The EBRD has offices in the countries where it operates and it is necessary to contact the bank's country team for specific information on how to access its benefits.
3. Submit an application for funding: If the project meets the EBRD's eligibility criteria, an application for financing can be submitted to the bank. The application should contain detailed information about the project, including business and financial plans.
4. Evaluation process: The EBRD team in the country of operations will assess the financing request and determine whether the project is viable and meets the bank's criteria.
5. Financing agreement: If the application is approved, the EBRD and the entrepreneur agree on the terms of financing and the contract is signed.

It is important to note that the process of accessing EBRD benefits can be lengthy and rigorous, so be prepared to submit a detailed application and have a sound and well-founded business and financial plan.

Founding and recent events

Created in 1991, two years after the fall of the Berlin Wall. It currently has 67 members, including two multilateral institutions (the European Union and the European Investment Bank). The EBRD expanded its geographical mandate in order to extend its operations to Mongolia and the Southern and Eastern Mediterranean region. Four countries in this region are countries of operations (Egypt, Morocco, Jordan and Tunisia). Greece and Cyprus have been designated as temporary countries of operations until 2020. In January 2016, China became a member of the EBRD.

Objectives

To support the transition to a market economy in the countries of Central and Eastern Europe, Central Asia, Mongolia and the Southern and Eastern Mediterranean region by financing projects mainly in the private sector and to a lesser extent in the public sector. The EBRD's statutes stipulate that lending to the public sector in the countries of operations may not exceed 40 % of the bank's total investments.

GOVERNMENT BODIES

The Board of Governors is the supreme governing body. The Board delegates most of its functions to the Board of Directors, which is the body responsible for the strategic management of the institution.

PROJECTS TO BE FUNDED

The EBRD finances projects with a significant local development component, fostering the green transition and promoting digital transformation.

If you want to find out if your project is eligible for an EBRD loan, you can go to this link (+)

COUNTRIES OF OPERATION

Albania, Armenia, Azerbaijan, Belarus, Bosnia-Herzegovina, Bulgaria, Croatia, Cyprus, Estonia, Greece, Georgia, Hungary, Jordan, Kazakhstan, Kyrgyz Republic, Kosovo, Latvia, Lithuania, Macedonia (FYROM), Slovak Republic, Slovenia, Morocco (+), Moldova, Mongolia, Poland, Romania, Russia, Tajikistan, Tunisia, Turkey, Turkmenistan, Ukraine, Uzbekistan and the Federation of Serbia and Montenegro.

POLICY AREAS

Financial, infrastructure, industry and energy sectors. It should be noted that the bank plays a very important role in nuclear safety in the region. Lending to the financial sector accounts for 32 % of the EBRD's overall loan portfolio.

Social Capital

• 30 billion.
• Paid-in share capital
• As at 31 December 2016 it amounted to €6,202 million.

Partners

• 65 countries, the European Union and the European Investment Bank.
• Countries of Operations
• 13,46 % of capital.

Major European shareholders

Germany (8.62% of the capital), France (8.62%), Italy (8.62%), United Kingdom (8.62%) and Spain (3.44%). EU countries and institutions, excluding the UK, contributed 54.53% of the capital. The EIB (3.04%) and the European Commission (3.04%).

Major non-European shareholders

USA (10,12%), Japan (8,62%) and Canada (3,44%).

Indebtedness

38 billion, as at 31 December 2016.

Annual Trading Volume

Total transactions in 2016 amounted to €9.4 billion.

Live Loan Portfolio

The EBRD's portfolio amounted to €23.5 billion as at 31 December 2016.

Net Results and Distribution

In 2016, the Bank had a net profit of € 985 million.

Bank staff

As at 31 December 2016, the Bank had 2,156 staff employed of whom approximately three quarters work at the London headquarters and the remainder in the offices established by the EBRD in its countries of operations. Statutory provisions more relevant and/or restrictive to the Bank's activities.

• Art. 1 of the Statutes: Countries of operation should commit themselves to the principles of multi-party democracy, pluralism and market economy.
• Artº.11.3: At least 60 % of the funding should be directed to the private sector.
• Art. 12.3: The Bank's objective in shareholdings cannot be either the control of the investee company or the corporate management of the investee company.
• BDS 99-2, Compendium of Financial Policies: Bank investments in a country should not exceed 90% of total paid-up capital + reserves + profits.