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EBRD commits €1.24 billion in first half
The European Bank for Reconstruction and Development committed €1.24 billion for new loan and equity investments in 33 projects in central and eastern Europe and the Commonwealth of Independent States in the six months ended 30 June, compared with 27 projects worth €581 million in the first half of 2000. Gross disbursements exceeded €1 billion, more than double the year-earlier level.
The Bank's first-half profit after provisions rose to €171.1 million from €70.1 million last year, principally on the strength of higher net interest income, effective cost control and lower provisions for possible losses. As at 30 June, the Bank had authorised capital of €20 billion, paid-in capital and reserves of €5.7 billion and cumulative provisions on its banking portfolio of €1.1 billion.
Steven Kaempfer, Vice President, Finance, said the results were encouraging in terms of the EBRD's operational and financial performance and the continued strengthening of its pipeline of new projects. However, he noted that profitability had in part been boosted by the release of some loan-loss provisions, reflecting improved portfolio performance and the successful recovery of a number of previously impaired assets. He said this recovery process had now largely run its course, and the global economic slowdown and uncertainty following the tragic events in New York would affect the Bank's operating environment in coming quarters.
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