European Bank for Economic Development. About European Bank for Reconstruction and Development

The European Bank for Reconstruction and Development (EBRD) was established in 1991 with the aim of assisting the countries of Central and Eastern Europe and the Commonwealth of Independent States (CIS) in establishing a market economy after the collapse of the administrative command system. In facilitating the transition to a market-oriented economy, the Bank provides direct financing for private sector activities, restructuring and privatization, and financing the infrastructure that supports such activities. His investment also helps build and strengthen organizational structures. The main forms of EBRD financing are loans, equity investments (shares) and guarantees.

Based in London, the EBRD is an international organization with 60 members (58 countries, the European Community and the European Investment Bank). Each member country is represented on the Board of Governors and the Board of Directors of the bank.

The organization emerged at a time when the socialist political system was changing in the states of Central and Eastern Europe and the countries of the former Soviet bloc needed support to create a new private sector in the transition to a market economy.

The EBRD is the largest investor in the region and, in addition to committing its own funds, attracts significant volumes of foreign direct investment. However, although its shareholders are government officials, the EBRD invests primarily in private enterprises, usually jointly with its commercial partners.

It provides project financing for banks, enterprises and companies, investing in both new production facilities and existing firms. He also works with state-owned companies to support their privatization and restructuring processes and improve utilities. The EBRD is leveraging its close ties with the governments of the region to pursue a commitment to an enabling business environment.

Like the IBRD, the EBRD raises funds through the issuance of bonds. A feature of the EBRD's operations is the extensive attraction of funds in the national currencies of Eastern European countries, including the Russian ruble.

EBRD charter

The EBRD's charter stipulates that it will operate only in countries that are committed to the principles of “democracy”. Caring for the environment is an integral part of a sound corporate governance framework and is embedded in all of the EBRD's investment operations.

In all of its investment operations, the EBRD must:

contribute to the formation of a full-fledged market economy in the country, that is, to ensure the effect of influencing the transition process;
take risks in order to assist private investors, but at the same time do not squeeze them out of the market;
apply sound banking principles.

Through its investments, the EBRD promotes:

structural and sectoral reforms;
development of competition, privatization and entrepreneurship;
strengthening financial institutions and legal systems;
developing the necessary infrastructure to support the private sector;
introduction of a reliably working corporate governance system, including in order to solve environmental problems.

As a catalyst for change, the EBRD:

stimulates co-financing and attracting foreign direct investment;
attracts domestic capital;
provides technical assistance.

Functions of the EBRD

The EBRD supports its member countries in structural and sectoral reforms, including demonopolization and privatization, to fully integrate their economies into the global economy by promoting:

organization, modernization and expansion of production, competitive and private entrepreneurial activities, primarily small and medium-sized enterprises;
mobilization of national and foreign capital and their effective management;
investments in production in order to create a competitive environment and increase its efficiency, quality of life and improve labor productivity;
providing technical assistance in the preparation, financing and implementation of projects;
stimulating and encouraging the development of capital markets;
implementation of solid and economically viable projects involving more than one recipient country;
environmentally sustainable development.

EBRD governance structure

1. The Board of Governors, in which each member of the EBRD is represented by one governor and one deputy, is the supreme body that determines the main directions of the Bank's activities. Meetings are held once a year, additional meetings may be called by the Board of Governors or the Directorate. The Board of Governors may fully or partially delegate its powers to the Directorate, with the exception of admitting and determining the conditions for admitting new members, changing the size of the statutory fund, suspending membership, electing directors and the president, determining the salaries of directors and deputy directors, approving the general balance sheet, amending the Articles of Association and termination of the Bank's operations. At the same time, the Board of Governors retains full authority over all tasks assigned to the Directorate. The number of votes held by each member is equal to the number of votes of his subscribed shares in the share capital of the Bank.

2. The EBRD President is elected for four years (re-election is possible) by the Board of Governors by a simple majority of the total number of Governors. The President manages day-to-day affairs in accordance with the instructions of the Directorate. He presides over the meetings of the Directorate and can take part in the meetings of the Board of Governors. He is the authorized representative of the Bank. As head of the Bank's staff, the President is responsible for organizing the work of the EBRD and for hiring and firing staff in accordance with the rules set by the Directorate. Vice Presidents are appointed on the recommendation of the President by the Directorate, which determines the terms of office, as well as their powers and functions.

Bank presidents:

April 1991 - July 1993: Jacques Attali
July 1993 - September 1993: and. O. Ron Freeman
September 1993 - January 1998: Jacques de Larosiere
January 1998 - September 1998: and. O. Charles Frank
September 1998 - April 2000: Horst Kohler
April 2000 - July 2000: and. O. Charles Frank
July 2000 - July 2008: Jean Lemierre
July 2008 - present Thomas Mirow

3. The Board of Directors is the main executive body. He is in charge of the current issues of the Bank's work. The Directorate decides on lending, equity investment guarantees, loans and technical assistance. He approves the EBRD's budget.

4. The Environmental Advisory Board is composed of environmental experts from Central and Eastern Europe and OECD countries, as well as advisers on environmental policy and strategy issues related to the Bank's “environmental mandate”.

EBRD capital

Capital resources of the Bank include share capital, borrowings and funds received to repay loans or guarantees of the Bank, income derived from the Bank's investments, and any other financial resources and income that are not part of the resources of its special funds. A number of foundations have been established in accordance with the Founding Agreement:

with the participation of Denmark, Iceland, Norway, Finland and Sweden - the Baltic Special Investment Fund to promote the private sector by supporting small and medium-sized enterprises in the Baltic countries, as well as the Baltic Special Technical Assistance Fund to promote the development of market economies in these countries;
Russian Special Small Business Fund for the Development of the Private Sector;
Russian Special Fund for Technical Assistance to Small Business.

The doubling of the Bank's capital to € 20 billion became a reality in April 1997. This allowed the Bank to continue to meet the growing demand for its services and maintain financial self-sufficiency.

EBRD financing

EBRD financing is project-specific and is provided both for strengthening financial institutions or restructuring large companies, and in the form of small loans to companies with only a few employees. Large investments or infrastructure projects (both private and with the participation of local or central authorities) are financed directly by the Bank, often jointly with partners. Small investments are made through financial intermediaries: local banks or investment funds.

A key feature of the EBRD that distinguishes it from other organizations is its support for the private sector, which is the essence of the EBRD's Charter, according to which at least 60% of the Bank's financing must go to the private sector.

The Bank seeks to help primarily companies experiencing difficulties in obtaining financing from other sources. It places particular emphasis on small and medium-sized enterprises, which play a critical role in the development of the private sector. Acting as a commercial and development bank, the EBRD provides funds for private enterprises or those that could be privatized, as well as physical and financial infrastructure projects to support the private sector.

EBRD performance

In 2004, the bank financed 129 projects totaling € 4.1 billion, of which € 1.24 billion was received by Russia. Total for 1991-2008. the bank issued to the countries of Eastern Europe 33 billion euros for 2.2 thousand projects, of which more than 5.9 billion euros fell to the share of Russia. In 2004, the bank's profit amounted to EUR 297.7 million. According to the results of 2008, the Bank's equity capital amounted to EUR 11.8 billion.

European Bank for Reconstruction and Development (EBRD)(European Bank for Reconstruction and Development, EBRD) is a regional international bank, which began its activities in 1991. The bank was created with a specific specific purpose - to promote structural reforms to create a market economy in the countries of Central and Eastern Europe and the former Soviet Union. In accordance with the Agreement Establishing the EBRD, it operates only in those countries that adhere to the principles of multi-party democracy, pluralism and market economy and implement them. Compliance with these principles is closely monitored by the Bank.

The bank is located in London, has the status of an international financial institution, which includes 61 members: 59 countries, including all European countries, countries in other regions of the world (USA, Mexico, Australia, Egypt, Japan, etc.), etc. The bank's authorized capital is 20 billion euros. Each member country is represented on the Board of Governors and the Board of Directors of the Bank. In Ukraine, the EBRD has diplomatic and privileged creditor status.

The main feature of the EBRD that distinguishes it from other development banks is its support for private entrepreneurship. This is the essence of the EBRD's activities, which proclaims that at least 60% of the Bank's total financing should be directed to financing the private sector.

To coordinate on the ground, the EBRD has opened 28 offices in all of its countries of operations, which are involved in the development of new projects and the implementation of approved projects, in close collaboration with local organizations. In the current environment, the EBRD staff has been relocated to country offices, which is reflected in the strengthening of field activities. Such decentralization, in the opinion of the Bank's management, will allow to more effectively respond to changes in market conditions and improve decision-making criteria. Representative offices are united into territorial groups. Ukraine, together with Romania, Bosnia and Herzegovina and Croatia, is part of the Southern and Eastern Europe (WOCEE) group. The activities of the territorial groups are managed by the Banking Department.

The Banking Department is divided into six business groups: three industry groups (financial institutions, industry and trade, infrastructure) and three territorial groups (Central Europe, Russia and Central Asia, South and Eastern Europe and the Caucasus).

All powers for the management of the EBRD are vested in the Board of Governors, headed by a Chairman and two deputies. It consists of the finance ministers or central bank governors of the member states and representatives from the EU and the EIB. The Board of Governors delegates a number of its powers to the Board of Directors, which is responsible for the day-to-day activities of the Bank.

The Board of Directors includes the President, three vice presidents and 23 directors. Each vice president coordinates the activities of a particular territorial group.

The meeting of shareholders is held annually in April-May, alternately in London (in odd years) and in one of the bank's member countries (in even years). The seventh annual training camp in 1998 took place in Kiev.

The Bank builds its activities according to the strategy of managed growth, based on strict obtaining of sound banking principles.

The objectives of the EBRD, which determine the priorities of its activities, are:

strengthening the financial sector;
promoting the emergence and development of small and medium-sized enterprises;
infrastructure assistance;
support for the restructuring of large enterprises;
creation of a favorable investment climate;
attracting foreign direct investment and encouraging co-financing of projects.

The minimum amount of direct loans provided by the EBRD is 5 million euros, although under certain conditions the amount can be adjusted - decreased or increased. The average amount of such loans is about 22 million euros, the term of loans is on average 5-10 years, in exceptional cases - 15 years. Interest on loans can be fixed or floating and, as a rule, are set with a margin to the LIBOR rate.

Ukraine joined the EBRD on August 13, 1992. Small and medium-sized businesses in our country are still underdeveloped, and therefore cooperation with the Bank is maximally aimed at promoting the development of this promising sector of the economy. After Ukraine joined the EBRD, an EU credit line in the amount of US $ 130 million was opened for it.

The priorities of the EBRD in Ukraine are:

support for private sector development;
support for privatization;
supporting the strengthening of the financial sector, primarily through financing for small and medium-sized enterprises;
promoting private investment in food processing and agricultural development;
rationalization of the energy industry;
modernization and reform of the main infrastructure sectors.

The European Bank for Reconstruction and Development (EBRD) was established in 1991 with the aim of assisting the countries of Central and Eastern Europe and the Commonwealth of Independent States (CIS) in establishing a market economy after the collapse of the command system. In facilitating the transition to a market-oriented economy, the Bank provides direct financing for private sector activities, restructuring and privatization, and financing the infrastructure that supports such activities. His investment also helps build and strengthen organizational structures. The main forms of EBRD financing are loans, equity investments (shares) and guarantees.

Functions of the EBRD. The EBRD supports member countries in structural and sectoral reforms, including demonopolization and privatization, to fully integrate their economies into the global economy by promoting:

Organization, modernization and expansion of production, competitive and private entrepreneurial activities, first of all - small and medium-sized enterprises;

Mobilization of national and foreign capital and their effective management;

Investments in production in order to create a competitive environment and increase its efficiency, quality of life and improve labor productivity;

Providing technical assistance in the preparation, financing and implementation of projects;

Stimulating and encouraging the development of capital markets;

Implementation of solid and economically viable projects involving more than one recipient country;

Environmentally sustainable development.

Managment structure. 1. Governing Board, in which each member of the EBRD is represented by one governor and one deputy, is the supreme body that determines the main directions of the Bank's activities. Meetings are held once a year, additional meetings may be called by the Board of Governors or the Directorate. The Board of Governors may fully or partially delegate its powers to the Directorate, with the exception of admitting and determining the conditions for admitting new members, changing the size of the statutory fund, suspending membership, electing directors and the president, determining the salaries of directors and deputy directors, approving the general balance sheet, amending the Articles of Association and termination of the Bank's operations. At the same time, the Board of Governors retains full authority over all tasks assigned to the Directorate. The number of votes held by each member is equal to the number of votes of his subscribed shares in the share capital of the Bank.

2. EBRD President elected for four years (re-election is possible) by the Board of Governors by a simple majority of votes from the total number of governors. The President manages day-to-day affairs in accordance with the instructions of the Directorate. He presides over the meetings of the Directorate and can take part in the meetings of the Board of Governors. He is the authorized representative of the Bank. As head of the Bank's staff, the President is responsible for organizing the work of the EBRD and for hiring and firing staff in accordance with the rules set by the Directorate. Vice Presidents are appointed on the recommendation of the President by the Directorate, which determines the terms of office, as well as their powers and functions.

3. Board of Directors - it is the main executive body. He is in charge of the current issues of the Bank's work. The Directorate decides on lending, equity investment guarantees, loans and technical assistance. He approves the EBRD's budget.

4. Environmental Advisory Board consists of environmental experts from Central and Eastern Europe and OECD countries, as well as advisers on environmental policy and strategy issues related to the Bank's “environmental mandate”.

Capital. Capital resources of the Bank include share capital, borrowings and funds received to repay loans or guarantees of the Bank, income derived from the Bank's investments, and any other financial resources and income that are not part of the resources of its special funds. A number of foundations have been established in accordance with the Founding Agreement:

1) with the participation of Denmark, Iceland, Norway, Finland and Sweden - the Baltic Special Investment Fund to assist the private sector by supporting small and medium-sized enterprises in the Baltic countries, as well as the Baltic Special Technical Assistance Fund to promote the development of market economies in these countries;

2) Russian Special Small Business Fund for the Development of the Private Sector;

3) Russian Special Fund for Technical Assistance to Small Business.

EBRD financing. EBRD financing is project-specific, both for strengthening financial institutions or restructuring large companies, and small loans to companies with only a few employees. Major investments or infrastructure projects (both private and with the participation of local or central authorities) are financed directly by the Bank, often jointly with partners. Small investments are made through financial intermediaries: local banks or investment funds.

A key feature of the EBRD that distinguishes it from other organizations is its support of the private sector, which is the essence of the EBRD's Charter, according to which at least 60% of the Bank's financing must go to the private sector.

As well as the European Union and the European Investment Bank.

The largest shareholders are the USA (10.2% of the EBRD's capital), Great Britain, Germany, Italy, France and Japan (8.7% each), the Russian Federation (4.1%), Spain and Canada (3.5% each), The EU and the EIB (3.1% each), the Netherlands (2.5%), Austria, Belgium, Switzerland and Sweden (2.3% each), Poland, Norway and Finland (1.3% each).

The Bank's declared share capital of EUR 10 billion was increased in 1996 to EUR 20 billion and to EUR 30 billion in 2010.

The Bank is currently active in more than 30 countries from Central Europe to Central Asia and the countries of the Southern and Eastern Mediterranean.

The only member of the Bank that has withdrawn from the countries of operations and no longer receives investment from the Bank is the Czech Republic.

The European Bank for Reconstruction and Development invests in both the financial and real sectors of the economy, investing in the creation of new enterprises and directing investments in existing companies.

The EBRD is active in the following sectors of the economy: agro-industrial complex, information and communication technologies, municipal infrastructure, legal reform, natural resources, industrial production and services, transport, sustainable resource use and climate change, financial institutions, private equity funds, energy, nuclear safety.

In 2015, the bank's total investment reached a record amount of 9.4 billion euros. The EBRD's expected profit in 2015 is 0.8 billion euros.

The highest governing body of the EBRD is the Board of Governors, to which each shareholder appoints a representative and one deputy.

The Board of Directors (23 persons) is responsible for the management of the general activities of the Bank. The directors are elected by the Board of Governors for three years, with the possibility of re-election for a second term.

The President is the legal representative of the EBRD. The President leads the staff of the Bank. He is responsible for organizing work, appointing or dismissing officers and employees in accordance with the rules established by the Board of Directors. He is elected by the Board of Governors by a majority vote for four years and is eligible for re-election for a second term. Currently, this post is held by the representative of Great Britain Suma Chakrabarti, who took office on July 3, 2012.

The official languages of the EBRD are English, German, French, Russian.

The headquarters is located in London (UK).

Russia, as the legal successor of the USSR, has the status of the founder of the European Bank for Reconstruction and Development. For many years the EBRD has been one of the largest investors in the real sector of the Russian economy. In total, from 1991 to 2015, the accumulated volume of EBRD investments in Russia amounted to 24.3 billion euros (792 projects).

In January 2016, the European Bank for Reconstruction and Development announced that 2015 was the first year that it did not launch new projects in Russia.

The material was prepared on the basis of information from RIA Novosti and open sources

The EBRD (European Bank for Reconstruction and Development - EBRD) was established in 1990 and became operational in April 1991. The current President of the Bank is Sir Suma Chakrabarti, who was elected at the meeting of the Board of Governors of the EBRD in London on 18 May 2012 (re-elected for another four-year term in May 2016). The EBRD is headquartered in London.

Goals. Facilitating the transition to a market economy and the development of private entrepreneurship in the countries of Central and Eastern Europe and the CIS.

Membership. The bank has 67 shareholders: 65 states (including all countries of the former USSR) and 2 international organizations - the European Union and the European Investment Bank. According to the Charter, the Bank's shareholders can also be non-European countries that are members of the IMF. In October 2012, the Board of Directors of the EBRD decided to include Kosovo as a member of the Bank, in 2014 Cyprus was included in its membership, in 2015 - China.

Authorized capital Jar. The authorized share capital is € 30 billion (in 2010, during the 19th Annual Meeting, the Bank's Board of Governors decided to increase the share capital by € 10 billion, from € 20 billion to € 30 billion; this measure was considered as temporary and was due to the need to increase the volume of the EBRD's operations in order to effectively fulfill the countercyclical functions of multilateral development banks, but for the time being it remains in force). The number of votes is distributed according to the number of shares.

Russia, as the legal successor of the USSR, has the status of the founder of the EBRD and has a 4.1% share in it (the USSR's share was 6%).

Structure. The supreme body of the EBRD - Governing board ... He defines the main directions of the Bank's activities. Each of the EBRD member countries has one representative on the Board of Governors (usually at the level of the minister of finance or the chairman of the central bank) and one deputy. Executive agency - Board of Directors - consists of 23 members, makes decisions on the Bank's policy, approves new projects and credit lines for their financing. Bank President manages the day-to-day activities of the EBRD, chairs meetings of the Board of Directors and participates in sessions of the Board of Governors. Elected for 4 years and manages the EBRD's staff (The total number of staff of the Bank at headquarters and in representative offices is approximately 1,848). Vice Presidents are appointed on the recommendation of the President by the Board of Directors.

Governor for the Russian Federation at the EBRD - Minister of Economic Development A. V. Ulyukaev, Deputy Governor - Deputy Minister of Finance S.A. Storchak... The post of Director for the Russian Federation, Belarus and Tajikistan is currently held by D.S. Morozov. Interests of the Republic of Belarus and Tajikistan The Directorate of Russia in the EBRD has been representing since October 1992. The main tasks of the Directorate are traditionally to increase the volume of operations in the country and improve the quality of the portfolio of country projects.

The Bank has 38 representative offices in 32 countries of operations, including Russia (on March 29, 1993, the Government of the Russian Federation and the EBRD signed the Agreement on the EBRD's Resident Representative in Russia, at the moment the implementation of new operations is suspended).

EBRD financial results. In 2015, the volume of EBRD transactions amounted to € 9.4 billion, which is 6% higher than the same indicator in 2014 (€ 8.9 billion), with a total number of operations of 381 (in 2014 - 377). The EBRD's net profit in 2015 was EUR 802 million (versus a loss of EUR 568 million in 2014). There are negative trends in activity, such as an increase in the share of government projects (while the EBRD is intended to finance mainly the private sector), a decrease in the quality of the bank's projects (the indicator of problem loans increased from 3.3% at the end of 2013 to 5.9% based on the results of 2015), an increase in debt financing due to a decrease in investment in capital.

EBRD political agenda. The bank is constantly expanding the geography of its activities. In 1997, the EBRD started implementing the first projects in BiH (became a member of the EBRD in June 1996) and Tajikistan, in 2001 - in Serbia and Montenegro. In fact, the Bank is now the largest source of direct investment in the CEE and CIS regions.

In 2011-2012. The Arab Spring dominated the EBRD's political agenda, resulting in amendments to the EBRD's founding documents aimed at further expanding the Bank's region of operations, in particular in North Africa and the Eastern Mediterranean, and accepting new countries as shareholders.

Another notable "plot" in the work of the EBRD is the continuation of assistance to the Eastern European banking systems ("Vienna Initiative 2.0") in order to prevent them from losing liquidity and capital due to a decrease in the level of debt (deleveraging) of Western European banks, which in turn have been the basis of banking systems for a long time. a number of countries in Eastern Europe.

In 2014, the process of suspending the approval of new projects of the Bank in Russia began, which negatively affected the results of its activities, but operations in Russia have not yet been resumed. Compensating for losses in the Russian direction, the EBRD increased its portfolio of operations in Turkey, Ukraine and the Mediterranean countries.

In 2015, during a meeting of the Board of Governors in Tbilisi, the EBRD's Strategic Capital Program 2016-2020 was adopted. (mid-term development strategy of the bank), which replaced the next “review of capital resources”. The strategy focuses on global issues in achieving sustainable development, food security, gender issues, equality of economic opportunities, employment promotion, etc.

EBRD investment activities in its countries of operations. The EBRD supports private sector development, strengthening financial institutions and legal systems, and developing the infrastructure needed to support the private sector. At the same time, unlike other international financial institutions, the Bank's Charter contains a kind of political mandate, which stipulates that all countries where the Bank conducts its operations must be committed to the principles of multi-party democracy, pluralism, etc.

Among the most important structural indicators of the EBRD's performance is portfolio ratio- percentage of funds directed to the private sector of the economy of the countries of operations. This indicator reflects the degree to which the Bank fulfills its statutory tasks related to supporting the development of private enterprises and entrepreneurship in countries with economies in transition (according to the Charter, at least 60% of the Bank's resources should be directed to the private sector).

Government guarantees are not required for private sector projects and are based on risk-adjusted payback calculations. The main criteria for the selection of projects are: "sound banking principles"; Additionality (ie the EBRD is not trying to replace commercial sources of finance); the ability to influence the processes of transition to a market economy (transition impact).

The total cost of a typical project is in the order of € 25 million, of which the EBRD directly finances 35% of the amount, and the rest is provided by the project sponsors. Therefore, the Bank's activity in a particular country is a kind of barometer for foreign investors.

The Bank also provides technical assistance to the development of small and micro businesses, which is financed both from the main resources of the EBRD and from the resources of 11 special funds: eight special investment funds and three special funds for technical cooperation. An important place in the EBRD's activities is played by environmental protection, nuclear safety, etc.

EBRD portfolio of projects by sector and region. In the sectoral context, the bulk of the Bank's operations are in the financial sector, infrastructure projects, energy and industrial sectors. The distribution of transactions by sector in 2015 was as follows: 22% (€ 2.1 billion) were in the corporate sector (industry, trade and agro-industrial sector), 31% (€ 2.9 billion) - in the financial sector, 27 % (2.5 billion euros) - energy and natural resources, 19% (1.7 billion euros) - for infrastructure.

As of the end of 2015, the geographic structure of the Bank's operations by region changed from previous years: the share of South-Eastern Europe decreased from 19% in 2014 to 13.6% in 2015 (approximately 1.3 billion euros ), the countries of Eastern Europe and the Caucasus also fell from 24% to 17.8% (about 1.7 billion euros), the share of the CEE and Baltic countries increased from 12% to 12.8% (to 1.2 billion euros) , the share of the countries of the Southern and Eastern Mediterranean increased from 12% to 15.5%, or almost 1.5 billion euros). Due to the suspension of new operations in 2014, the share of Russia continued to fall - from 21.3% in 2013 to 6.9% in 2014 and to 1% in 2015 (106 million euros).

The EBRD's largest countries of operations in 2015 were Turkey (€ 1.9 billion), Ukraine (€ 0.99 billion), Egypt (€ 0.8 billion) and Kazakhstan (€ 0.7 billion).