EBRD adopts new strategy for Slovak Republic

By Axel  Reiserer

EBRD adopts new strategy for Slovak Republic

Enhancing competitiveness and supporting green economy

The EBRD Board of Directors has approved a new country strategy for the Slovak Republic which sets out the Bank’s priorities in the country for the period 2017-2022. These are:

  1. Enhancing competitiveness through cutting-edge financial instruments and structures

The EBRD will provide niche, cutting-edge financial instruments (such as covered bonds and infrastructure bonds) and selective private risk capital capital) and deploy specialised expertise to facilitate capital markets development. The EBRD will also support, in conjunction with partner international financial institutions, selective private-sector led infrastructure projects employing innovative structures such as PPPs.

Overall, the Bank aims to provide an expanded and diversified range of innovative financial products, including for select infrastructure through innovative, private-led solutions.

  1. Supporting Green Economy Transition through dedicated financing facilities

Subject to the necessary government support, the EBRD will help design specialised facilities to prepare, finance and implement green economy projects via financial intermediaries using, for example, the Green Energy Financing Framework and other green innovation products.

Here, the Bank aims to achieve improved energy and resource efficiency and increased commercial financing for green economy investments, where applicable with government and/or EU Structural and Investment Funds support.

The Bank will stay alert to opportunities to implement these core priorities in underserved regions or in a manner that boosts economic inclusion.

Graeme Hutchison, EBRD Regional Head for Hungary and the Slovak Republic, said: “The new country strategy for the Slovak Republic marks an important milestone in our activities in the country and sets out the parameters for our future engagement. The Slovak Republic has come a long way in the transition process and the EBRD remains committed to help tackling remaining challenges. This is expressed in our strategy and the document will serve as a roadmap in this process.”

To date, the EBRD has invested €2.3 billion in more than 130 projects in the country. The Bank combines project financing with policy engagement and most recently supported the Slovak Republic in creating the legal foundations for covered bonds with amendments to the relevant law in line with best practice recommendations by the European Banking Authority.