Content deleted Content added
m delete space between sentence and source |
No edit summary |
||
| (17 intermediate revisions by 13 users not shown) | |||
Line 1:
{{Short description|Financial institution which supports more than 30 countries}}
{{distinguish|text=the [[European Investment Bank]] (EIB) or the [[Council of Europe Development Bank]] (CEB)}}
{{Use dmy dates|date=July 2025}}
{{Infobox company
| name = European Bank for Reconstruction and Development
| logo =
| logo_size = 200px
| image = One Bank Street geograph-6678817-by-Stephen-Richards.jpg
| image_caption = One Bank Street in [[Canary Wharf]],<br/>EBRD head office since 2022<ref>{{cite web |website=EBRD |url=https://www.ebrd.com/news/2022/ebrd-moves-london-headquarters-to-canary-wharf.html |date=
[[File:European Bank for Reconstruction and Development Map.png|thumb|European Bank for Reconstruction and Development map]]
| type = [[International financial institution]]
Line 19 ⟶ 20:
| focus =
| net_income = €−1.1 billion (2022)<ref name="ebrd.com22">{{cite web|url=https://www.ebrd.com/financial-report-2022#|title=EBRD Financial Report 2022|access-date=3 October 2023|website=ebrd.com}}</ref>
| assets =
| equity = €19.33 billion (2022)<ref name="ebrd.com22"/>
| endowment =
| num_volunteers =
| num_employees = 3,000 (2016)<ref>{{cite web|url=http://www.ebrd.com/news/publications/annual-report/annual-report-2016.html|title=EBRD Annual Report 2016|date=10 May 2017|website=ebrd.com}}</ref>
| subsid =
| owner =
Line 33:
}}
The '''European Bank for Reconstruction and Development''', shortened to
Initially focused on the countries of the former [[Eastern Bloc]] it expanded to support development in more than 30 countries from Central Europe to Central Asia. Similar to other multilateral development banks, the EBRD has members from all over the world (North America, Africa, Asia and Australia, see below), with the biggest single shareholder being the [[United States]], but only lends regionally in its countries of operations. Headquartered in [[London]], the EBRD is owned by
The EBRD is not to be confused with the [[European Investment Bank]] (EIB), which is owned by EU member states and is used to support EU policy. EBRD is also distinct from the [[Council of Europe Development Bank]] (CEB).
Line 42:
[[File:European_Bank_for_Reconstruction_and_Development_Headquarters_(EBRD),_London,_United_Kingdom_02.jpg|thumb|175 Bishopsgate in London, the EBRD's head office between 1992 and 2022]]
Located in London, the EBRD was intended at its beginning to focus on the [[Transition economy|switch from centrally planned economy to market based economy]] in the [[Central and Eastern Europe|Central and Eastern European countries]] by investing in the private sector, mainly banks, industries and businesses, and by promoting policies that would favor them.<ref name=":0">{{Cite book |last=Lessambo |first=Felix I.
== Governance ==
Line 48:
=== Board of Governors ===
Representatives from each member state compose this board, they have authority power. Currently (2024-2025) Slovenia is the Chair of Board of Governors, while Iceland and Turkey are the Vice Chairs.
=== Board of Directors ===
Line 59:
=== President ===
The EBRD is composed of many members with voting powers, from European and non-European states to the membership of other institutions such as the European Investment Bank, however depending on the geographical ___location of each member, voting rights differ. More precisely, European and other creditor members hold a majority voting power. At its beginning, the EBRD was owned by more than 40 members, in 2015 the number of countries owning it was 61. and as of March 2022, there were 71 countries as owners.<ref>{{Cite web |title=EBRD: staff, structure, history |url=https://www.ebrd.com/who-we-are |access-date=
The following presidents have served the EBRD to date (as of March 2022).
Line 77:
{| class="wikitable sortable" style="text-align:right"
|+ EBRD shareholders<ref>{{Cite web|url=https://www.ebrd.com/
!
|-
| style="text-align:left" | {{flag|Albania}} || 18 December 1991 || €{{val|30010000}}
Line 145:
|-
| style="text-align:left" | {{flag|Italy}} || 28 March 1991 || €{{val|2556510000}}
|-
| style="text-align:left" | {{flag|Ivory Coast}} ||18 December 2024 ||€{{val|2030000}}
|-
| style="text-align:left" | {{flag|Japan}} || 2 April 1991 || €{{val|2900110000}}
Line 183 ⟶ 185:
|-
| style="text-align:left" | {{flag|New Zealand}} || 19 August 1991 || €{{val|10500000}}
|-
| style="text-align:left" |{{flag|Nigeria}} ||26 February 2025 ||€{{val|522000}}
|-
| style="text-align:left" | {{flag|North Macedonia}} || 21 April 1993 || €{{val|19980000}}
Line 230 ⟶ 234:
| style="text-align:left" | {{flag|Uzbekistan}} || 30 April 1992 || €{{val|44120000}}
|- class="sortbottom"
!
|}
== Public banking ==
The EBRD is a public bank, meaning that public institutions such as states are shareholders in those institutions. More precisely, public financial institutions are controlled major predominantly by public authorities (more than 50%) whereas in institutions with public participations, public authorities aren't majority shareholders.<ref>{{Cite book |last1=Schmit |first1=Mathias |title=Public Financial Institutions in Europe |last2=Gheeraert |first2=Laurent |last3=Denuit |first3=Thierry |last4=Warny |first4=Cédric |publisher=European Association of Public Banks |year=2011 |___location=Bruxelles}}</ref> Public banks were particularly involved in the economic transition of the former Soviet Republics and Central and Eastern European countries as private banks and other sources of financing didn't want to invest for reasons such as those countries’ macroeconomic difficulties as well as political reasons regarding the country’s stability for instance.<ref>{{Cite journal |last=Hurlock |first=Matthew H |date=1994 |title=New approaches to economic development: the World Bank, the EBRD, and the negative pledge clause |url=https://heinonline.org/HOL/Page?handle=hein.journals/hilj35&div=16&g_sent=1&casa_token=q3_v80WXqFkAAAAA:XwXyzOIXJLpCjPHmKSjGr1IFP_gmRSqTL7w-ptwNacOQTVm3LQzotPHqRreGtBiiagd-cpgGyw&collection=journals |journal=Harv. Int'l
=== Relationship with the EIB ===
In the context of the EU’s investment banking, the EBRD and the EIB have been involved in a rivalry regarding the status of the “EU’s premier development bank”. Major criticism about the EBRD in this situation is related to the fact that non-EU countries are also important shareholders whereas the EIB is completely owned by the EU.<ref>{{Cite news |date=
=== Public banks and the COVID-19 pandemic ===
More recently, since the start of the COVID-19 pandemic, public banks have had their influence and role increased as they have become important actors of the economic recovery response.<ref>{{Cite book |last=Bilal |first=Sanoussi |title=The rise of public development banks in the European financial architecture for development |publisher=Elcano Royal Institute |year=2021}}</ref> As for the European Bank for Reconstruction and Development, it has committed €21 billion between 2020 and 2021 of activities. More precisely, its own package was established within the scope of the Resilience Framework, the Trade Facilitation Programme and the Vital Infrastructure Support Programme etc.<ref>{{Cite web |title=The EBRD and the coronavirus (Covid-19) pandemic |url=https://www.ebrd.com/what-we-do/coronavirus |access-date=
== Financing ==
Line 250 ⟶ 254:
=== Financial operations ===
According to the EBRD, the bank provides different direct financial instruments such as loans, equity investments and guarantees. It also works on the assistance of SMEs through the intermediary of other banks or investment and venture capital funds which are linked to the EBRD’s investments.<ref>{{Cite web |title=EBRD project finance |url=https://www.ebrd.com/work-with-us/project-finance.html |access-date=
=== Steps leading to a loan ===
Each project is analysed, first by the EBRD management with the negotiations and the subsequent signing of a mandate letter drafting the important information about the project plan, the expected expenses as well as the responsibilities. Secondly, the project is to be finally reviewed by the management. Later on, it is submitted to the Board of Directors for approval. After being signed for both parties, it becomes legally binding. It leads to the transfer of funds from the EBRD to the client which will in the future start to repay the bank’s loan.<ref>{{Cite web |title=How EBRD projects are financed |url=https://www.ebrd.com/work-with-us/project-finance/funding-process.html |access-date=
==Environmental sustainability==
The EBRD is unique among development banks for two reasons. First, it was the first multilateral development bank to have an explicit environmental mandate in its charter (since 1995),<ref>{{cite web|url=https://www.ciel.org/reports/the-european-bank-for-reconstruction-and-development-an-environmental-progress-report-executive-summary-a-ciel-critique-of-ebrds-environmental-policies-november-1995-2/|title=The European Bank for Reconstruction and Development: An Environmental Progress Report, Executive Summary (A CIEL Critique of EBRD's Environmental Policies) (November, 1995)|website=www.ciel.org|date=November 1995|access-date=20 February 2020}}</ref> and second, in that it will not finance thermal coal mining and coal-fired electricity generation due to their environmental impact.<ref>{{cite web|url=https://www.ft.com/content/7d0814f0-fd6f-11e8-ac00-57a2a826423e |archive-url=https://ghostarchive.org/archive/20221210/https://www.ft.com/content/7d0814f0-fd6f-11e8-ac00-57a2a826423e |archive-date=
The following table shows the development of investment volume into the Green Economy Transition (GET) approach, in support of the Paris climate goals.
Line 262 ⟶ 266:
{| class="wikitable"
|-
! Year !! Total investment !! GET investment !! Ratio !!
|-
| 2016 || 9.4 billion EUR || 2.9 billion EUR || 31% || <ref name=ebrdAR2016>{{cite web|url=https://www.ebrd.com/documents/comms-and-bis/pdf-annual-report-2016-english.pdf |archive-url=https://ghostarchive.org/archive/20221009/https://www.ebrd.com/documents/comms-and-bis/pdf-annual-report-2016-english.pdf |archive-date=9 October 2022
|-
| 2017 || 9.7 billion EUR || 4.1 billion EUR || 43% || <ref name=ebrdAR2017>{{cite web|url=https://www.ebrd.com/documents/comms-and-bis/pdf-annual-report-2017-english.pdf |archive-url=https://ghostarchive.org/archive/20221009/https://www.ebrd.com/documents/comms-and-bis/pdf-annual-report-2017-english.pdf |archive-date=9 October 2022
|-
| 2018 || 9.5 billion EUR || 3.3 billion EUR || 36% || <ref name=ebrdAR2018>{{cite web|url=https://www.ebrd.com/documents/comms-and-bis/annual-report-2018-english.pdf |archive-url=https://ghostarchive.org/archive/20221009/https://www.ebrd.com/documents/comms-and-bis/annual-report-2018-english.pdf |archive-date=9 October 2022
|-
| 2019 || 10.1 billion EUR|| 4.6 billion EUR || 46% || <ref name=ebrd2018>{{cite web|url=https://www.ebrd.com/news/2020/ebrd-delivers-record-positive-impact-across-its-regions-in-2019.html|title=EBRD delivers record positive impact across its regions in 2019|website=www.ebrd.com|date=16 January 2020|access-date=19 February 2020}}</ref>
Line 284 ⟶ 288:
=== Mediation ===
More recently, other than its original lending role, the EBRD has played a [[Mediation|mediating role]] in Europe, for instance in Moldova in 2013 and even in the Central Asian region (most notably in countries such as the Kyrgyz Republic and Tajikistan for instance) by intervening as a third party in commercial disputes which has become one of its major areas of activities. As a mediating actor, the EBRD has managed to involve other actors such as businesses and Chambers of Commerce among others. Moreover, a regional forum on commercial mediation was established by the bank as part of its work, which has managed to involve various representatives from countries in Europe and Asia, such as judges and experts for instance.<ref>{{Cite book
=== The initial focus on transition economy ===
It is notable that one of the main objectives of the European Bank for Reconstruction and Development was to become a link between the European Union, its institutions and the countries it would focus on.<ref name=":2" /> As the recipients were previously centrally planned economies, the ERBD centered through [[Transition economy|its operations]] on working with the private sector, which was the principal target of central planning.<ref>{{Cite book |last=Kilpatrick |first=Andrew
=== To modern challenges ===
Since the 90s, recipients of EBRD financing have diversified, in fact, from mainly targeting EEC countries, the bank has moved to the Asian continent and increasingly focused on other countries such as China.<ref name=":4">{{Cite journal |last1=Obydenkova |first1=Anastassia |last2=Rodrigues Vieira |first2=Vinícius G. |last3=Tosun |first3=Jale |date=
=== Sustainable market economies ===
Since the 2000s, the focus has shifted towards the issue over sustainable market economies, notably in the context of the [[2008 financial crisis
In [[Armenia]], EBRD has been operating since 1986, investing over €2 billion in over 200 projects. More than 90% of these investments have been made in private enterprises.<ref>{{Cite web |date=31 October
=== Related to environment and climate change ===
Line 337 ⟶ 341:
==== Environmentally harmful projects ====
Some [[NGO]]s have criticized the EBRD for financing projects they consider to be environmentally and socially harmful. Although it has increased its investments
In 2025, the EBRD considered investing €40 million to expand [[Burger King]] and [[Popeyes]] locations across Poland, Romania, and the Czech Republic, but cancelled the plan following opposition by [[environmental movement|environmental]] and [[animal welfare]] activists.<ref>{{cite news |last1=Dumitrescu |first1=Radu |title=EBRD backs Burger King expansion in Romania and the region with EUR 40 mln |url=https://www.romania-insider.com/ebrd-backs-burger-king-expansion-jun-2024 |access-date=1 August 2025 |work=Romania Insider |date=16 June 2025 |archive-url=http://web.archive.org/web/20250716170449/https://www.romania-insider.com/ebrd-backs-burger-king-expansion-jun-2024 |archive-date=16 July 2025}}</ref><ref>{{cite web |title=EBRD Cancels €40M Burger King Investment After S3F Member Pushback |url=https://stopfinancingfactoryfarming.com/ebrd-cancels-e40m-burger-king-investment-after-s3f-member-pushback/ |website=Stop Financing Factory Farming |access-date=1 August 2025 |date=17 July 2025}}</ref>
==== The Balkans ====
The EBRD's activities in the [[Balkans]] have attracted particular controversy and criticism,<ref>{{Cite web |date=
In 2011, the EBRD approved a €65 million loan to ELEM, the [[Republic of North Macedonia|Macedonian]] electricity utility, for a dam at [[Boškov Most Hydro Power Plant|Boskov Most]].<ref>{{Cite web |title=Macedonia's ELEM invites bids for Boskov Most HPP construction – EBRD |url=http://seenews.com/news/macedonias-elem-invites-bids-for-boskov-most-hpp-construction-ebrd-396208 |access-date=
Again in North Macedonia, the EBRD was criticised by environmentalists<ref>{{Cite web |title=Macedonia: EBRD's planned destruction of Lake Ohrid Biosphere Reserve |url=https://theecologist.org/2015/oct/27/macedonia-ebrds-planned-destruction-lake-ohrid-biosphere-reserve |access-date=
=== Regarding the targeted countries ===
Even though, its major objectives is to push for democracy and respect of human rights, the EBRD has been accused of not working towards those goals by not applying enough pressure and even "holding its annual meetings in dictator-run countries".<ref name=":0" /> Furthermore, reports have highlighted the fact that an important part of the loans provided by the EBRD go to countries with authoritarian leaders as of the beginning of 2022, including states such as Belarus or Egypt among others, and this despite its major objective of promoting democracy.<ref>{{Cite news |last1=Pitel |first1=Laura |last2=Fleming |first2=Sam |date=
==== 2014 sanctions against Russia ====
The EBRD announced on 23 July 2014 that it would suspend new investment projects in Russia, following an earlier declaration by the [[European Council]].<ref name="web.archive.org">{{Cite web |date=
==== Azerbaijan's oil and gas sector ====
[[File:Ilham Aliyev met with President of European Bank for Reconstruction and Development in Munich 01.jpg|thumb|Bank's President [[Odile Renaud-Basso]] with Azerbaijan's President [[Ilham Aliyev]] in February 2024]]
Building [[Southern Gas Corridor]], European countries and companies support gas export from [[Azerbaijan]] and contribute to finance Azerbaijan's government.<ref>{{Cite web |last=Welle (www.dw.com) |first=Deutsche |title=In Azerbaijan, EU focuses on energy instead of democracy {{!}} DW {{!}}
The EBRD has invested over 3 billion euros ($3.5 billion) in 177 projects in Azerbaijan.<ref>{{Cite web |date=
▲Building [[Southern Gas Corridor]], European countries and companies support gas export from [[Azerbaijan]] and contribute to finance Azerbaijan's government.<ref>{{Cite web |last=Welle (www.dw.com) |first=Deutsche |title=In Azerbaijan, EU focuses on energy instead of democracy {{!}} DW {{!}} 08.10.2013 |url=https://www.dw.com/en/in-azerbaijan-eu-focuses-on-energy-instead-of-democracy/a-17145518 |access-date=2022-03-29 |website=DW.COM |language=en-GB}}</ref><ref>{{Cite news |date=2017-10-18 |title=EBRD board approves $500 mln loan for TANAP gas pipeline project |language=en |work=Reuters |url=https://www.reuters.com/article/europe-gas-ebrd-idUKL8N1MR4YS |access-date=2022-03-29}}</ref> The [[Ilham Aliyev|Aliyev]] regime is considered by many [[Non-governmental organization|NGOs]] and watchdogs organizations as [[Human rights in Azerbaijan|repressive]] and activists and journalists are regularly arrested on false charges and imprisoned.<ref>{{Cite web |date=2016-05-24 |title=Azerbaijan: Bank Chief Should Raise Rights Issues |url=https://www.hrw.org/news/2016/05/24/azerbaijan-bank-chief-should-raise-rights-issues |access-date=2022-03-29 |website=Human Rights Watch |language=en}}</ref><ref>{{Cite journal |date=2016-10-20 |title=Harassed, Imprisoned, Exiled: Azerbaijan's Continuing Crackdown on Government Critics, Lawyers, and Civil Society |journal=Human Rights Watch |url=https://www.hrw.org/report/2016/10/20/harassed-imprisoned-exiled/azerbaijans-continuing-crackdown-government-critics |language=en |last1=Gogia |first1=Giorgi }}</ref> The [[International Federation for Human Rights]] (FIDH) wrote in 2015, that "for more than a decade Azerbaijan has made shameless use of [[caviar diplomacy]] to charm European governments, its most important oil and gas clients".<ref>{{Cite web |title='Azerbaijan is turning into a dictatorship – we shouldn't fall for its caviar diplomacy' |url=https://www.fidh.org/en/region/europe-central-asia/azerbaijan/azerbaijan-is-turning-into-a-dictatorship-we-shouldn-t-fall-for-its |access-date=2022-03-29 |website=International Federation for Human Rights |language=en}}</ref> The EEC BankWatch warns that "Developing Shah Deniz stage 2 and the Southern Gas Corridor is likely to cement further the oppressive structures of the Aliyev government".<ref>{{Cite web |title=Pipedreams: Public subsidies for Lukoil in Azerbaijan (report by Bankwatch Network, Jan. 2015) by Both ENDS – Issuu |url=https://issuu.com/both_ends/docs/bankwatch_pipedreams-lukoil-jan2015 |access-date=2022-03-29 |website=issuu.com |date=23 January 2015 |language=en}}</ref>
▲The EBRD has invested over 3 billion euros ($3.5 billion) in 177 projects in Azerbaijan.<ref>{{Cite web |date=2021-06-30 |title=EBRD invested $3.5bn in 177 projects in Azerbaijan [PHOTO] |url=https://www.azernews.az/business/180690.html |access-date=2022-03-29 |website=AzerNews.az |language=en}}</ref> The EBRD approved three loans for the [[Shah Deniz gas field]] (US$200 million, US$250 million and US$100 million) as well as a US$500 million loan for the [[Trans-Anatolian gas pipeline]] (TANAP), and stated its financial support to the [[Trans Adriatic Pipeline]] (TAP) could amount to EUR 1.2 billion.<ref>{{Cite web |title=Southern Gas Corridor |url=https://bankwatch.org/project/southern-gas-corridor-euro-caspian-mega-pipeline |access-date=2022-03-29 |website=Bankwatch |language=en-US}}</ref>
== See also ==
| |||