EBRD strategies and policies

The strategies and policies that govern the EBRD's operations are listed below by type and alphabetically.

For queries regarding this content, please contact the EBRD Communications Department.

Related to strategies and policies

Archive of strategies

 

 

Board activity

View minutes of EBRD board meetings, details of upcoming meetings, lists of key policies due for review, and other reports and information.

Learn more

Have your say on EBRD policy

The EBRD invites public comment when its strategies are being developed or are due for review.

Learn more

Project Summary Documents

The EBRD publishes technical data on every project that is approved or in progress.
 

Learn more

 

Addressing staff grievances

The Grievance Procedures and the Appeals Procedures establish a graduated and defined three-tier appeal mechanism under which a staff member can seek redress of any administrative decision that adversely affects him or her.

 
 

Anti-terrorist statement

The EBRD will not provide financing or award any contract for the supply of goods, works or services to any person or entity that, according to the UN Security Council and/or the counter-terrorism subsidiary bodies of the Security Council, is or may be supporting terrorist activities.

Learn more

 

Approval of new governance policies

On 7 May 2014, the EBRD Board of Directors approved revisions to three major governance policies: the Environmental and Social Policy, Public Information Policy, and Project Complaint Mechanism Rules of Procedure.
 

Business Plan and Budget

The Bank's Business Plan and Budget for 2015 reflects the final year of the implementation of the Fourth Capital Resources Review strategy and framework (CRR4), which covers the period 2011 to 2015.

Learn more

Capital Resources Review

The EBRD’s operations during the CRR4 period 2011-2015 will be guided by the strategic objectives endorsed by the Board of Governors at the 2009 Annual Meeting in London. A significant focus will be placed on tackling energy efficiency, climate change and helping to ensure energy security, as well as accelerating transition in the infrastructure sectors in the Bank’s countries of operations.
 

Common Performance Assessment Report

The African Development Bank, the Asian Development Bank, the European Bank for Reconstruction and Development, the Inter-American Development Bank and the World Bank are making good progress in adopting Managing for Development Results (MfDR) practices. These MfDR practices aim to improve the design, implementation, and evaluation of strategies and operations with a view to achieving relevant development results.

Learn more

 

Domiciliation of EBRD clients

As mandated by Article 13(i) of the Agreement Establishing the Bank, the EBRD applies “sound banking principles to all its operations”. One such principle is to “know your customer”, which requires that the Bank conduct appropriate due diligence on project sponsors and the projects themselves.

View policy

Enforcement policy and procedures

The Enforcement Policy and Procedures (“EPP”) of the European Bank for Reconstruction and Development (EBRD or the Bank) set out the Bank’s policy and procedures for processing allegations of fraud, corruption, collusion, coercion, obstruction, theft or misuse of the Bank’s resources in relation to activities and projects financed from the Bank’s ordinary capital resources (including the purchase of the goods, works or services for the Bank) or from Special Funds resources, or from cooperation funds administered by the Bank.

View policy

Environmental and social procedures

The EBRD is directed by its founding agreement to adhere to sound banking principles and to "promote in the full range of its activities environmentally sound and sustainable development".

The various ways in which the EBRD promotes such development are described in the Bank's Environmental and Social Policy.

One specific step taken by the Bank to address this mandate and the General Principles and Objectives set out in the Policy is to ensure that all of its investment and technical co-operation projects undergo environmental appraisal along with the financial, economic, legal and technical due diligence which is carried out, and ensure appropriate monitoring is undertaken following approval of projects by the Board of Directors.

For this the Bank has developed Environmental and Social Procedures.

VIEW PROCEDURES

 

Environmental and Social Policy

The current policy was approved by the Board of Directors at its Meeting on 7th May 2014.
 
 
 

Ethnic minorities and the EBRD

This paper explores the political aspects of the Bank’s mandate in relation to ethnic minority rights and suggests the Bank’s future approach. It does so because of the threat to democratic and economic progress from increasing tension in the Bank’s region of operations between many minority groups and their countries’ governments, and also from threats to peace between separate countries.

The approach taken is to consider the status of international and regional protection of the human rights of individuals belonging to minorities, particularly through those bodies or instruments cited in the Agreement Establishing the European Bank and in the Bank’s policy paper on Procedures to Implement the Political Aspects of the Mandate of the European Bank.

View paper

 

Evaluation policy

This policy establishes the scope and objectives served by evaluation in the EBRD.

 

Fraud and corruption - definitions and guidelines

‘Fraud and corruption - definitions and guidelines - The purpose of these guidelines is to clarify the meaning and interpretation of the terms “Corrupt Practices”, “Fraudulent Practices”, “Coercive Practices”, “Collusive Practices”, “Obstructive Practice”, “Theft” and “Misuse of the Bank’s Resources” in the context of a Bank Project”.

View guidelines

Gender Equality Strategy

This strategy mandates the Bank to promote behaviours, through its operations, which contribute to building equitable and sustainable economies. It promotes a vision for a future in which women and men in the Bank’s Countries of Operation, regardless of socio-economic status, have the same rights and opportunities to access finance and assets, lead businesses, participate in decision-making processes affecting their lives and have equal and safe access to public services.

View strategy in English

 

 

View strategy in Arabic

 

 

View strategy in French

 

 

View strategy in Russian

 

 

View strategy in Turkish

 

 

REPORT ON PUBLIC COMMENTS

Governance policies

On 7 May 2014, the EBRD Board of Directors approved revisions to three major governance policies: the Environmental and Social Policy, Public Information Policy, and Project Complaint Mechanism Rules of Procedure.

The policies were greatly improved following an extensive consultation with stakeholders, including civil society organisations, industry associations, clients, other international financial institutions, and international organisations. Public meetings were held on the three draft policies in seven countries: Morocco, Ukraine, Georgia, Kazakhstan, Russia, Bulgaria and at EBRD headquarters in the UK.

Learn more

Green Economy Transition Approach

The EBRD’s Green Economy Transition Approach reflects the needs of its countries of operations and increased focus on environmental sustainability in the context of the Sustainable Development Goals and COP21.

View document

Information Classification (IC)

The EBRD recognises the importance of the information that it handles, including information that it receives from and sends to its clients, partners and suppliers.

It also recognises the need to prevent the unauthorised disclosure of sensitive information both inside and outside the Bank.

We have therefore launched a new Information Classification (IC) Scheme.

View guide

 

Integrity Risk Policy

The Bank’s Integrity Risks Policy and Terms of Reference for the Office of the Chief Compliance Officer

View policy

Purchasing policy and procedures

The Internal Purchasing Policy and Procedures are designed to ensure that the purchase of all goods, services and works required for the satisfactory operation of the Bank Headquarters and Resident Offices is handled in a transparent, timely, efficient and effective manner with due regard to international purchasing best practice and the needs of individual user departments.

Political aspects of the EBRD mandate

The Agreement Establishing the European Bank for Reconstruction and Development includes a significant political element in that it specifies that the Bank may conduct its operations in countries of central and eastern Europe which not only are proceeding in their transition towards market-oriented economies, but also are applying principles of multiparty democracy and pluralism.

Soon after the Bank became operational its Board of Directors approved procedures to implement the political aspects of the Bank’s mandate in ways which recognise the critical link between the political and economic aspects of the Agreement.

View Policy

Procurement policies and rules

The EBRD's Procurement Policies and Rules are based on the fundamental principles of non-discrimination, fairness and transparency. They are designed to promote efficiency and effectiveness and to minimise credit risk in the implementation of the Bank's lending and investment operations.

Project Complaint Mechanism

The Project Complaint Mechanism (PCM) is the EBRD’s accountability mechanism that has been established to assess and review complaints about Bank-financed projects. It provides individual(s) and local groups that may be directly or adversely affected by an EBRD project, as well as civil society organisations, a means of raising complaints or grievances with the Bank, independently from banking operations.

Learn more

 

Public Information Policy

The EBRD’s Public Information Policy (PIP) embodies the Bank’s commitment to enhance the transparency of its activities and promote good governance. This sixth review has been carried out as mandated by the Policy.

The 2014 review was wide-ranging, including internal and external consultations, including extensive meetings with representatives of CSOs.

 

 

Purchasing policy and procedures

The Internal Purchasing Policy and Procedures are designed to ensure that the purchase of all goods, services and works required for the satisfactory operation of the Bank Headquarters and Resident Offices is handled in a transparent, timely, efficient and effective manner with due regard to international purchasing best practice and the needs of individual user departments.

View policy

 

Secure Mail (Switch)

The EBRD recognises the importance of the information that it handles, including information that it receives from and sends to its clients, partners and suppliers.   

It also recognises the need to prevent the unauthorised disclosure of sensitive information both inside and outside the Bank.

We have therefore implemented a new Secure Mail service called ‘Switch’ to enable the sending and receiving of sensitive data securely.

View guide

 

 

Strategic and Capital Framework

The Strategic Capital Framework sets the EBRD’s medium term directions for the period 2016-2020.

View framework

 

 

Strategy Implementation Plan (SIP)

The Bank’s Strategic and Capital Framework 2016 to 2020 agreed at the Bank’s Annual Meeting in 2015 set the Bank the goal of supporting its countries of operation in their efforts to improve their economic prospects through a re-energising of the process of transition to well-functioning market economies. This Strategy Implementation Plan (SIP) sets out how the Bank will deliver on that objective.   It is the Bank’s first three year plan, which will be updated annually, on a rolling basis.  The SIP 2016-18 is a plan for growth in the Bank’s activity and impact.  In approving the Strategic and Capital Framework shareholders challenged the Bank to use its capital efficiently to respond more fully to the needs of its region.  This plan meets that challenge with rising – but prudent – capital utilisation and with continued sound financial management to ensure financial sustainability.  In this, the Bank is clearly responding to the imperatives of the global agenda embodied in the decision to approve the Sustainable Development Goals and the concerted response demanded to supporting action to combat climate change.

View plan

 

 

Agribusiness strategy

The Agribusiness Sector Strategy was approved by the EBRD board on 6th July 2010.

Since the last Operations Policy (approved by the Board in 2002) significant positive developments have materialized in the sector. These include inter alia the emergence of strong local players throughout the value chain; a retail revolution that has greatly improved the quality and format of retail operations; progress in reducing tariffs and trade barriers under the aegis of the World Trade Organisation and an increasing awareness of sustainability issues.

 

Energy strategy

The European Bank for Reconstruction and Development (EBRD) has adopted a new Energy Strategy which will guide its investments in the energy and natural resources sector.

In the strategy the EBRD, already the largest investor in renewable energy and energy efficiency projects in its region, reaffirms its commitment to helping the countries where it invests move towards sustainable energy sectors.

Financial Sector Strategy

The Strategy assesses the implementation of the previous strategy, describes the challenges faced by the financial sector within the current operating environment and sets out an operational approach focused on supporting the recovery of the financial system as an effective driver of economic growth and strengthening its resilience against future economic downturns.

Information and Communication Technologies Sector Strategy

Through its activities and investments in the information and communication technologies (“ICT”) sector (the “Sector"), the EBRD makes an important contribution to the transition process with the objective of establishing a fully liberalised, market-led, financially self-sufficient Sector.

Municipal and Environmental Infrastructure

Municipal infrastructure is probably one of the areas where challenges are the most daunting in the EBRD countries of operations. In 2010, an estimated 26 million people in the EBRD region did not have access to an improved water supply – and six countries had more than one million people without such provision. Eighty-six million people only had access to substandard or shared sanitation. More than 150 million people in the EBRD countries of operations depend on district heating and yet about 10,000 towns and cities in Russia alone and 2,000 in Central Europe await rehabilitation of their systems.

 

 

Mining operations policy

This document sets out the operational role of the Bank in the mining sector and establishes the overall framework for the Bank’s activities. This policy was approved by the Board of Directors in 2012 following the public consultation.

 

Micro, small and medium-sized enterprises

The Micro, Small and Medium-sized Enterprises (MSME) strategy focuses on the core elements of the Bank’s approach towards supporting the development of MSMEs in its countries of operation. Support for MSMEs is central to the Bank’s transition mandate, and the document sets out the underlying principles of EBRD’s activities in the sector going forward.

Property policy

Countries in the transition region inherited a commercial, logistics and residential infrastructure which suffered from decades of under investment and was not geared to the demands of a market economy.

As the provision of modern real estate infrastructure is essential to support the region’s transition and economic expansion and diversification, the activities of the Bank in the property sector are aimed at complementing, enhancing and creating synergies with the core competencies of the Bank, in particular by building an efficient platform for enterprises and municipalities, whilst applying a high selectivity as far as sponsors and projects are concerned.

View policy

Shipping Operations Policy

The shipping operations policy formally sets out the Bank’s strategy in this sector. Previous to the approval of the policy, there was a Shipping Guidelines document, approved by the Board in December 1994 (BDS 94-161). The shipping operations policy was approved by the EBRD board on 31 October 2001.

Learn more

Transport Sector Strategy

This document sets out the Strategy which will guide the Bank’s operations in the transport sector. The Strategy will build on the achievements under the previous EBRD Transport Operations Policy and describe how the Bank will respond to the new challenges which have emerged.

View strategy

Albania

In the period since the adoption of the previous Strategy, Albania has made further progress in democratic reform, to a great extent geared towards integration into the EU. Albania obtained formal status as an EU candidate country in June 2014.

Armenia

After growing by 7.2 per cent in 2012, Armenia’s economic growth slowed to 3.3 per cent in 2013 and 3.5 per cent in 2014. In 2015, GDP growth is projected to moderate to 2.3 percent in the context of the broader regional downturn to which Armenia is exposed via trade, remittances and investment flows.

Azerbaijan

Azerbaijan has a presidential form of government with powers concentrated heavily in the executive branch. President Ilham Aliyev has been in office since October 2003 and was re-elected for another five years in October 2013. Since coming to power, President Aliyev has steadily established his political authority. The ruling presidential party has a dominant position in the legislature and in the political system. The October presidential and upcoming parliamentary elections are unlikely to significantly alter the distribution of power during the Strategy period.

 

Belarus

Belarus’ political context has been shaped to a significant extent, over the past two years, by changes in the regional geopolitical environment. Since the start of the Ukraine crisis, Belarus has played a constructive role in the region, appreciated by the international community. At the same time, Belarus has moved towards increased international openness, including discussions on the state of affairs regarding democracy and human rights in the country.

Bosnia and Herzegovina

Bosnia and Herzegovina’s path to sustainable growth and development requires a much greater focus than before on an enabling business environment for private sector development, strengthened linkages between the two entities and with neighbouring countries and greater exploitation of the country’s natural comparative advantages.

 

Bulgaria

Although Bulgaria is an advanced transition country and an EU member, the country still faces significant transition challenges.

 

Croatia

The continuation of the prudent economic policies and an accelerated implementation of the reform agenda are essential conditions for Croatia to make full use of the accession opportunities and the EBRD stands ready to assist it in this direction.

 

Cyprus

The overarching strategic focus of the Bank in Cyprus is to support transition with institution and market enhancement and deep economic restructuring. This in turn should help the country to overcome the deep economic and financial crisis, in line with the objectives of the EAP.

 

Estonia

Estonia implemented the body of EU market regulation prior to accession in 2004 and has benefited significantly from integration into the EU internal market through substantial capital inflows and growing trade shares with the rest of the EU. Estonia has one of the most knowledge-intensive economies in the transition region.

 

Georgia

The Georgian economy benefited from comprehensive reforms implemented in recent years. However, some shortcomings of the liberal economic model have become apparent more recently. The new government, with the support of the international community, has a window of opportunity to address the shortcomings of Georgia’s recent developmental model while maintaining the country on the path of strong and sustainable growth.

Greece

During the period 2008-15, the Greek economy went through a dramatic economic contraction. In order to contribute to the country’s recovery the EBRD was mandated in 2015 to engage in Greece with investments and policy dialogue for a temporary period until the end of 2020. Provided macroeconomic and political stability are maintained, and if investment picks up from current levels, the potential for a bounce-back from 2017 onwards is strong. Growth rebalancing is expected to be driven by the ongoing shift to a more export-oriented growth model and the development of Greece’s potential in areas such as tourism, logistics, regional energy projects, energy efficiency, food processing and pharmaceuticals.

 

Hungary

Although Hungary is amongst the most advanced countries in the transition region in terms of market reform, significant transition gaps remain in several areas.

 

Jordan

Jordan is a constitutional monarchy that, over the past three years, has undertaken significant political reforms against a backdrop of social, economic and security challenges resulting from regional turmoil and external shocks.

 

Kazakhstan

Kazakhstan’s chairmanship of the OSCE in 2010 prompted amendments to some key pieces of legislation related to democratic transition, including the laws on elections, political parties, media, and local government. Nevertheless, political reforms overall have been slow and many challenges remain. Although hard-hit by the financial crisis, the economy has been growing strongly by over 7 per cent in 2010 and 2011 and 5 per cent in 2012 driven by oil production and exports.

 

Kosovo

Kosovo is committed to and applying the principles of multiparty democracy, pluralism, and market economics in accordance with the conditions specified in Article 1 of the Agreement Establishing the Bank.

 

Kyrgyz Republic

The Kyrgyz Republic is making progress towards becoming a multi-party democracy. With its many functioning political parties, a relatively free media and a network of active civil society organisations, the Kyrgyz Republic continues to feature well in the regional context.

 

Latvia

Latvia is among most advanced transition countries in the EBRD region. However the scale of the impact of the economic crisis on the Latvian economy has exposed areas that require a further acceleration of reforms and where the EBRD can be of support.

 

Lithuania

Despite successful market-oriented and democratic reforms, Lithuania was hit hard by the global financial crisis of 2009-2010. The crisis revealed a number of remaining reform challenges, particularly in the areas of competitiveness and public and corporate governance.

 

FYR Macedonia

The Former Yugoslav Republic of Macedonia (FYR Macedonia) continues to meet the conditions specified in Article 1 of the Agreement Establishing the Bank.

FYR Macedonia has made steady progress in transition over two decades, but still faces significant challenges across sectors. Given that the country is small and landlocked, the key challenge is to increase FYR Macedonia’s level of integration into regional and global markets. The Bank is well positioned to assist in this process both by supporting the development of key transport corridors, allied to strong and intensified cooperation with key partners such as the European Union and the European Investment Bank, and by promoting private sector development and cross-border trade and investment, building on the numerous business-friendly reforms introduced by the authorities over recent years.

Moldova

The Moldovan government has continued to pursue a strategy of gradual normalisation of social and economic relations while seeking to make political integration more attractive by securing enhanced access to European markets and visa-free travel to the EU. However, concrete steps toward a political settlement have been limited.

 
 

Mongolia

Since the beginning of transition two decades ago, the country has adopted a liberal Constitution, developed a competitive political party system and established a vibrant civil society. The media are free to report on a wide range of issues and there is a general increasing adherence to the rule of law and respect of human rights, though significant challenges remain.

Montenegro

Montenegro is committed to and applying the principles of multiparty democracy, pluralism and market economics in accordance with the conditions specified in Article 1 of the Agreement Establishing the Bank.

Morocco

Over the past two and half years, Morocco has made notable progress in its reform of political institutions. It adopted a new Constitution approved through a public referendum, undertook a free and fair parliamentary election and formed two governments based on a parliamentary majority.

 

Poland

Poland is an advanced transition country which has made significant strides in developing a well-functioning market economy embedded in a stable and accountable democratic political regime.

Romania

Although Romania is an advanced transition country and a member of the European Union, the country still faces significant transition challenges in the coming years in certain sectors.

 

Russia

The Russian Federation is committed to the principles of multiparty democracy, pluralism and market economics in accordance with Article 1 of the Agreement establishing the Bank, although progress in the application of these principles during the previous Strategy period has been uneven.

Serbia

Serbia has made steady progress on key reforms geared towards integration into the European Union. The Stabilization and Association Agreement between Serbia and EU entered into force on 1 September 2013. As decided by the European Council on 28 June 2013 and confirmed by the December 2013 Council, the EU accession negotiations formally opened on 21 January 2014.

Slovak Republic

The Slovak Republic is an advanced transition country, which implemented the body of EU market regulation prior to its EU accession in 2004 and which has benefited from integration into the EU internal market through substantial capital inflows and growing trade shares with the rest of the EU.

Slovenia

Slovenia is committed to and applying the principles of multiparty democracy, pluralism and market economics in accordance with the conditions specified in Article 1 of the Agreement Establishing the Bank.
 

Tajikistan

The EBRD’s Board of Directors has approved a new country strategy for Tajikistan which will define the Bank’s activities in that country for the next three years from 2015 to 2018. Bank operations in Tajikistan started in 1992 with technical cooperation, with the first investments in 1996. During this time, the EBRD has concentrated on private sector development, which accounts for over 70 per cent of the Bank’s investment there.

Strategy: English | Russian | Tajik

 

Turkey

Economic activity moderated to 2.9 per cent in 2014, and financial markets remained volatile and vulnerable to shifts in global sentiment. Nevertheless, drivers of growth have become more favourable, with net exports taking over as the main driver of growth following a sharp depreciation of the lira at the turn of 2014.

In 2015, the positive impact of lower oil prices on growth will likely be offset by continuing weakness in external demand and developments in the euro-dollar exchange rate, affected by the diverging monetary policy between the Fed and the ECB.

 

Turkmenistan

Over the years the Bank has been concerned with Turkmenistan’s slow progress towards multi-party democracy, pluralism and a market-based economy in keeping with Article 1 of the Agreement Establishing the Bank. In March 2010 the Bank adopted a “calibrated strategic approach” for Turkmenistan, which introduced political and economic benchmarks against which reforms could be measured and the Bank’s operational response more finely tailored. This increased the Bank’s flexibility and enhanced its ability to match the scale and scope of operational responses to changes in the economic, business and political environment of the country.
 

Ukraine

The post-crisis recovery is expected to be protracted due to weak domestic demand, ongoing adjustment to the terms of trade shock, lingering problems in the financial sector, the limited capacity of government to provide further fiscal stimulus to attract inward investment. The announced structural reforms, if implemented fairly, should contribute towards increasing the country’s long-term growth potential and help mitigate the post-crisis macroeconomic vulnerabilities.

Uzbekistan

The previous country strategy for Uzbekistan, adopted in March 2003, qualified Uzbekistan’s progress towards implementation of the principles of Article 1 of the Agreement Establishing the Bank as being slow and characterised by setbacks. Although some progress has been achieved on the economic side since then, there was no improvement in Uzbekistan’s political environment and prospects for quick political liberalisation remain remote.