Leaders will make a final decision by the end of 2023. The additional capital will allow the EBRD to continue to provide sustainable levels of investment in Ukraine during the war.
The Board of Directors of the European Bank for Reconstruction and Development (EBRD) has recommended that the bank’s governors approve a capital increase of €4 billion to ensure meaningful and sustainable investment in Ukraine now and in the future. This is stated in the bank’s message.
The approval by the board of directors is the first step in the formal process of increasing the EBRD’s capital from the current level of €30 billion. Leaders will make a final decision by the end of 2023.
According to the proposal, the additional capital would allow the EBRD to continue to provide a sustainable level of investment during the war in Ukraine of €1.5 billion per year and to increase its annual investment in Ukraine to €3 billion in the future.
If approved, this proposal will be the third capital increase in the history of the EBRD, following similar decisions in 1996 and 2010. The capital increase will take effect from the end of 2024, with the first payments coming in the beginning of 2025 .
Let’s remember that the President of the European Bank for Reconstruction and Development, Odile Renaud-Basso, said that financial and military support for Ukraine is an important issue and needs to be increased.
Earlier, the EBRD said Ukraine’s five-year post-war reconstruction period would require additional investment of nearly $50 billion per year. In particular, we are talking about the inflow of foreign capital.
Source: korrespondent
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