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EBRD finances record number of projects in 2012

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21 January 2013 – London, UK – The European Bank for Reconstruction and Development (EBRD) has announced that it financed a record number of projects in 2012, providing strong support in a particularly difficult environment for the countries where it invests.  According to preliminary estimates, the EBRD invested €8.7 billion in its traditional area of operations in 2012, financing an unprecedented 388 individual projects. That compared with an investment volume of €9 billion in 2011 in 380 projects.

sir-suma-chakrabarti“Economic conditions have been particularly challenging in most of the countries where we invest,” said EBRD President Sir Suma Chakrabarti (pictured right). “With a record number of investments, the Bank has proven once again to be a reliable partner. It will continue to work hard to help restore a path of sustained economic growth in the future.”

On top of the investments in its traditional region, the EBRD also launched its expansion into the southern and eastern Mediterranean in 2012, making commitments worth €181 million in six projects.  The Bank has begun investing in Egypt, Morocco, Jordan and Tunisia, supporting the process of economic modernisation in the wake of political changes in the Middle East and North Africa.  By 2015, EBRD expects to invest up to €2.5 billion a year in this new region.

Looking ahead to 2013 and beyond, the EBRD will put a strong emphasis on financing projects that can prepare the way for recovery and more robust growth in the future.  Countries in central, southern and eastern Europe have been hit especially hard by the most recent turmoil in the eurozone. The EBRD is aiming to invest €4 billion in this region alone in the next two years as part of a wider joint action plan together with the World Bank and the European Investment Bank.

In 2012, Russia remained the single largest recipient of investments, with an estimated annual business volume of €2.6 billion, 30 per cent of the total. Turkey, where the EBRD began investing only in 2009, saw investments of €1.0 billion.

In the EBRD’s Early Transition Countries (*), the least advanced countries where the Bank invests, financing remained a strong €1.06 billion, up five per cent from the previous year.

The number of projects in the western Balkans remained high at 64, after 65 in 2011, for a total volume of €663 million, after €987 million in 2011.

Investments under the EBRD’s Sustainable Energy Initiative, which finances energy efficiency projects and promotes the development of renewable energy sources,  totalled an estimated €2.3 billion, accounting for 26 per cent of total EBRD financing in 2012.

The Bank expects to have made a 2012 net profit of around €1 billion, after €173 million in 2011.

*The Early Transition Countries are Armenia, Azerbaijan, Belarus, Georgia, Kyrgyz Republic, Moldova, Mongolia, Tajikistan, Turkmenistan and Uzbekistan.

The European Bank for Reconstruction and Development (EBRD) was established in 1991 to nurture the private sector in central and eastern Europe and ex-soviet countries. Today the EBRD uses investment to help build market economies and democracies in countries from central Europe to central Asia. The EBRD is the largest single investor in the region and mobilizes significant foreign direct investment beyond its own financing. Owned by 61 countries and two intergovernmental institutions, the EBRD provides project financing for banks, industries and businesses. For more information, visit http://www.ebrd.com/index.htm

Source: EBRD