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{{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
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| 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]]
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=== 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).
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=== 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 ==
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=== 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.
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! Year !! Total investment !! GET investment !! Ratio !! {{Refh}}
|-
| 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>
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=== 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]], which harshly impacted population and their trust in financial institutions, democracy and free market. As a result, a rethinking of the concept of transition has taken place within the EBRD and has impacted the activities of the bank. Furthermore, the concept of transition was reviewed in 2015. In fact, it led to the idea that the ideal market economy is made of a greatly competitive, resilient and integrated market and is complemented by a good governance system conducted by a well-functioning state which has to be environmental friendly and inclusive.<ref name=":5" />
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 ===
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==== 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 into [[Energy conservation|energy efficiency]] and [[sustainable energy]] in recent years, these NGOs consider the bank continues to diminish the impacts of green investments by financing [[Emission intensity|carbon-intensive]] development such as coal, oil and gas production, transportation and generation, motorways, and airports.<ref name="bankwatch.org">{{Cite web |title=European Bank for Reconstruction and Development (EBRD) |url=https://bankwatch.org/ebrd |access-date=
==== 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=
== See also ==
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