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EBRD commits €1.28 billion in first half
The European Bank for Reconstruction and Development committed €1.28 billion for new loan and equity investments in central and eastern Europe and the Commonwealth of Independent States in the six months ended 30 June, compared with €1.24 billion in the first half of 2001. This indicates a continuation of the strong business growth witnessed in 2001. Gross disbursements were €870 million, compared with €1.04 billion a year ago.
The EBRD's first-half profit after provisions rose to €186 million from €171 million a year earlier, principally on the strength of steady net interest income and higher returns on the equity portfolio. Provisions for losses were €34.3 million, compared with a write-back of €14.1 million of provisions in 2001. As at 30 June, the Bank had authorised capital of €20 billion, paid-in capital and reserves of €5.9 billion, and cumulative provisions on its banking portfolio of €1.2 billion.
The EBRD invested in 39 projects in the first half - compared with 33 in last year's first half - including a €130 million loan to restructure the Polish railways, a $100 million loan to develop a Russo-Finnish oilfield north of the Arctic Circle and a $75 million investment to upgrade Slovak power.
Steven Kaempfer, Vice President, Finance, said the continued strength of the Bank's operational and financial performance is encouraging, especially in light of the challenging world economic environment and volatile financial markets. Against this background the EBRD's countries of operations have on the whole performed relatively well - although they are not immune to the global trends - and the increased risks in the global economy may yet affect the Bank's operating environment in the year ahead, he added.
The Bank's pipeline of new projects remains strong, with enhanced emphasis on the less advanced transition economies while maintaining an active presence in the advanced transition countries, in accordance with the EBRD's strategy.
Financial statement
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