|
|
|
| |
| Additional information |
| |
| European Bank for Reconstruction & Development |
| |
| |
Mission statement:
The EBRD is an international financial institution that supports projects from central Europe to central Asia. Investing primarily in private sector clients whose needs cannot be fully met by the market, the Bank fosters transition towards open and democratic market economies. In all our operations we follow the highest standards of corporate governance and sustainable development.
We aim to promote market economies that function well – where businesses are competitive, innovation is encouraged, household incomes reflect rising employment and productivity, and where environmental and social conditions reflect peoples’ needs. |
|
 |
|
Overview:
Since our establishment in 1991 we have become the largest financial investor in our region of operations which stretches from central Europe and the Western Balkans to central Asia. With the ability and willingness to bear risk on behalf of our clients, we help their countries in the region to become open, market economies. We are owned by 63 countries, the European Union and the European Investment Bank.
Our strategy in Albania
The Bank’s focus over the strategy period will be to strengthen state institutions; invest in infrastructure, including upgrading of national, regional and local road transport networks; further strengthen the banking system; support SMEs / MSEs and bank financing of these companies to improve competitiveness; and support the development of the non-bank financial sector.
As in the past, the Bank will coordinate its activities with other IFIs and donors, especially in the context of the new Western Balkans Investment Framework (WBIF) together with the EC, EIB, CEB and bilateral donors. |
|
|
|
History:
The European Bank for Reconstruction and Development (EBRD) is the first international financial institution of the post Cold War period. It was established in 1991 in response to major changes in the political and economic climate in central and eastern Europe. Inaugurated less than two years after the fall of the Berlin Wall, the Bank was created to support the development of market economies in the region following the widespread collapse of communist regimes.
A bank for Europe
The idea of the European Bank, put forward by President François Mitterrand of France at the European Parliament in Strasbourg on 25 October 1989, came to fruition on 29 May 1990 with the signature of its agreement by 40 countries, the Commission of the European Communities and the European Investment Bank.
With Headquarters in London, the EBRD began operations in April 1991.
The world’s only transition bank
The EBRD is the world’s only transition bank.
Today it works in 29 countries from central Europe to central Asia financing projects, primarily in the private sector, that serve the transition to market economies and pluralistic democratic societies.
In its capacity as a development bank, the EBRD seeks to finance operations that are both commercially viable and assist development, including in the environmental field.
The Bank serves the interests of all its members, not just those which will benefit from financing, because the integration of central and eastern Europe into Europe and into the global market provides new opportunities for trade and investment in all parts of the world.
The Bank’s early years
The original idea for the EBRD came from President Mitterrand’s special adviser Dr Jacques Attali who also chaired the international conference for the creation of the EBRD.
The perceived urgency of the project was demonstrated by the fact that it took just 18 months for founding members to complete the negotiations and launch the Bank.
The Treaty was signed in April 1990.
London was chosen as the Headquarters of the Bank and Dr Attali was elected as its founding and first President. The EBRD was inaugurated in May 1991.
The sudden and total collapse of the Soviet Union convinced the founding countries of the urgency to provide support to a region emerging from decades of political and economic dictatorship.
It became clear that boosting the role of the private sector as the linchpin for free and open market economies was crucial in the democratic transition process.
The EBRD’s early activities included establishing contacts with all interested parties, conducting preparatory missions to central and eastern Europe agreeing on procedures, and forging a strategy for the institution.
Why a transition bank?
The process of transition from command economies to open market economies requires an enormous range of structural transformation.
From very early on the EBRD became heavily involved in areas such as banking systems reform, the liberalisation of prices, privatisation (legalisation and policy dialogue) and the creation of appropriate legal frameworks for property rights.
The expertise of the Bank became well-known in fostering competition throughout the economy, the necessary changes in managerial behaviour and the establishment of commercial codes and accounting systems.
These reforms were supported by sound advice, training and technical expertise, and supplemented by major investments in the private and public sectors to ensure an effective supply response.
Since domestic capital alone would not have been sufficient, the Bank helped to bring in external capital from both private and public sources.
An IFI with a difference
The role conceived for the EBRD was unique for an international financial institution (IFI).
It included fostering transition through project financing, primarily in the private sector, through the careful identification of projects that would expand and improve markets.
Focus includes building the institutions necessary for underpinning the market economy, and demonstrating and promoting market-oriented skills and sound business practices.
A unique mandate
The uniqueness of the EBRD’s mission is remarkable for its political underpinning.
Differing from other development banks, the EBRD operates under a mandate that has political aspects, in that it seeks to assist only those countries that are “committed to and applying the principles of multi-party democracy [and] pluralism” (Article 1 of the Agreement Establishing the Bank).
Protection of the environment is also a core component of the Bank’s mandate. Years of ecologically destructive practices left the countries of central and eastern Europe and the Commonwealth of Independent States (CIS) with a chronic environmental legacy.
The Bank promotes environmentally sustainable development in all its activities, making it the only IFI with such a determined approach to the environment.
The Bank believes that sustainable development is fundamental to sound business practice and to ensure this, all of the Bank’s investment projects are screened in compliance with the it’s Environmental and Social Policy.
Presidents of the Bank
July 2012 - Present: Sir Suma Chakrabarti
July 2008 - July 2012: Thomas Mirow
July 2000 - July 2008: Jean Lemierre
Sep 1998 - Apr 2000: Horst Köhler
Sep 1993 - Jan 1998: Jacques de Larosière
Apr 1991 - Jun 1993: Jacques Attali |
|
|
|
KEY Facts:
Key facts about the EBRD's work in Albania
No. of projects 56
Net business volume €683.0 million
Total project value €2.4 billion
Gross disbursements €530.4 million
Portfolio in private sector 58% |
|
|
|
|
|
|
|
 |
|
 |
|
|
