The European Bank for Reconstruction and Development (EBRD) said on Friday it warmly welcomed the announcement by the UK Government of a new fund to support economic reform and good governance in a number of emerging markets in which the London-based financial institution also invests.
The British government has announced a Good Governance Fund worth £20 million in its first year to provide expert advice, training and assistance to the governments of Ukraine, Georgia, Moldova, Serbia and Bosnia and Herzegovina.
“This is a very important step. Sustained and successful economic and governance reform is fundamental to supporting vibrant economies. The investment needs of these countries are huge and the competition for finance is fierce. This new initiative – in support of the reform efforts of governments themselves – is a welcome commitment to the prosperity of the region”, EBRD President Sir Suma Chakrabarti said.
The EBRD President noted that the Bank had recently launched its own Investment Climate and Governance Initiative (ICGI) and that the two efforts would complement each other.
The EBRD Initiative helps the Bank support economic development by working with reform-minded governments, assisting them to improve the investment climate and strengthen economic governance. By targeting the Bank’s expertise across a number of areas that are crucial to private sector growth, the ICGI aims to deliver concrete improvements to the business environment to enable businesses to prosper and countries to attract new investment.
The Bank has signed agreements so far with Moldova, Serbia and Albania under the ICGI and a separate Anti-Corruption Initiative with the new government of Ukraine.