A digest of recent news from the EBRD
“EBRD the indispensable multilateral bank”
In an interview with the Eastern Eye, an Indian publication, EBRD President Sir Suma Chakrabarti took stock of his time at the helm of the Bank and said: “I’m proud, frankly, to have led EBRD for eight years – and in those eight years EBRD has become what I call the indispensable, multilateral development bank.”
How EBRD economies are placed to exit coronavirus lockdown measures
A new monitor developed by EBRD economists shows that many economies in the Bank’s regions are better positioned to exit social distancing than other emerging-market and advanced-economy comparators. They have less vulnerable labour markets, with fewer SMEs and self-employed people and lower shares of the population on temporary contracts.
Vienna Initiative rekindles financial sector dialogue
Members of the Vienna Initiative met in virtual session on 8 June, their first opportunity to sit in full forum since the outbreak of the coronavirus, which has had a severe impact on the economies of central, eastern and south-eastern Europe.
EBRD Chief Economist warns against “sleepwalking into protectionism”
In an interview with the BBC, which was later also published as a web story, EBRD Chief Economist Beata Javorcik warned : “In the absence of global commitment to free trade the world may just sleepwalk into protectionism." Other guests in the programme included World Bank President David Malpass and the US economist Larry Summers.
Meanwhile, a Wall Street Journal article on future trade relations between the United States and China quoted a recent research paper by Beata Javorcik on foreign direct investment inflows.
The Centre for Economic Policy Research (CEPR) and the EBRD organised a joint Facebook LIVE event on "Productive Development Policies: The Substance and the Organization" which our Chief Economist presented
EBRD’s Head of Caucasus, Catarina Bjorlin Hansen, spoke in an interview with broadcaster 1TV about the Bank’s support for clients in Georgia and its work with the Investors’ Council to help the government draft a post Covid-19 investment strategy.
…in Kyrgyz Republic
Neil McKain, EBRD Regional Head, discussed the Bank’s support for the Kyrgyz Republic to address its most urgent needs and building the ground for a long-term economic recovery.
…and in Belarus
A story on EBRD’s investments in improving water supply and treatment was featured on ONT TV, highlighting how residents of the Vitebsk oblast are benefiting from the Bank’s engagement.
Support for Turkish banking sector
The EBRD is providing a US$ 75 million loan to Akbank, a major local lender, to help Turkish businesses with access to finance to overcome the impact of the coronavirus pandemic.
Support to local businesses in Egypt
The EBRD provided a loan up to US$ 100 million to National Bank of Kuwait Egypt (NBKE) for on-lending to private businesses.
Covered bonds by Estonia’s LHV Pank
The EBRD invested €37 million in the first covered bonds issued by LHV Pank to support the establishment of a still novel capital market instrument in Estonia.
Support in the private sector in Armenia
In Armenia, the EBRD is providing a US$ 25 million loan to its longstanding partner bank InecoBank for extending support to private companies.
€50 million loan to Polish wholesaler Eurocash
Poland’s leading wholesaler Eurocash S.A took full control of the food retailer Frisco.pl with the help of a loan of up to €50 million provided by the EBRD.
Polish PM Morawiecki mentioned during a press conference that the EBRD predicts Poland to see the lowest GDP drop due to the pandemic amongst the EU countries.
New podcast: Will capitalism survive the coronavirus pandemic?
Nobel laureate Joseph Stiglitz, EBRD Chief Economist Beata Javorcik and the columnist Roger Cohen discussed how and whether capitalism will survive the coronavirus pandemic on a special Pocket Dilemmas podcast organised by the EBRD and the Athens Democracy Forum (in association with The New York Times).
EBRD Green Cities webinar: Transition to recovery
In a webinar organised by EBRD Green Cities, municipal leaders from the southern and eastern Mediterranean discussed lessons from the coronavirus pandemic and how the EBRD can help the recovery.
Promoting SMEs’ access to capital markets in Greece
Building on the success of the first round of the EBRD’s SME Pre-Listing Support programme last year, the EBRD is launching a second call for Greek SMEs.
Supporting small businesses in Turkey with J.P.Morgan
J.P.Morgan became the first private organisation to support the EBRD’s operations with philanthropic co-financing aimed at supporting the growth of small businesses in Turkey and especially female entrepreneurship.
Delphi Economic Forum praises EBRD
Greek Minister of Development and Investments, Adonis Georgiadis, and the Chief Economic Advisor to the Greek PM, Alex Patelis, congratulated and thanked the EBRD for its work in the country. Mr Patelis said that we have “an incredible relationship” and Mr Georgiadis, who also serves as EBRD Governor, praise the Bank as “very efficient and very fast”.
Providing medical care during coronavirus outbreak
In Egypt, TABIBI, a beneficiary of EBRD business advice, started offering online consultations and telehealth lines dedicated to coronavirus-related situations, to protect patients from the risks of physical clinic visits during the coronavirus pandemic.
Bringing clean water to Morocco under lockdown
The National Office for Electricity and Drinking Water in Morocco sped up the construction of a water treatment plant funded by the EBRD to bring clean water to 140,000 people with the rise in consumption during the coronavirus pandemic.
Supporting start-up in Jordan
In Jordan, Abjjad, a tech start-up that benefitted from the EBRD Star Venture programme, has seen 200,000 new subscriptions to its network, and content acquisition also accelerated amid the spike in online readers throughout the Covid-19 lockdown.
EBRD stands against racism
“There is no place for racism, in any of its despicable manifestations, within the EBRD or anywhere else in the world. The EBRD stands committed to confronting head-on any such prejudices and discrimination”, said EBRD President Sir Suma Chakrabarti on a statement against racism.
The EBRD changed its logo on social media, replacing it with a black circle, to express the Bank’s support for the fight nagainst racism.
President Sir Suma Chakrabarti tweeted to highlight the Bank’s support in the fighting against racism.
During a “Using country analytics to inform the Covid-19 response” webinar, organised by the Country Diagnostics Working Group and hosted by Swedish International Development Cooperation Agency (SIDA), the participants discussed the importance of coordinated action, the need for the crisis response to be evidence- and science-based, and what IFIs and DFIs are already doing in this space, notably the joint analytical platform.
EBRD’s Kerrie Law spoke about her EBRD career in Corporate Strategy and as co-host of the Pocket Dilemmas Podcast to Where Women Work.
Newly approved projects
In Turkey, the EBRD approved a €75 million loan to DenizBank for onlending to MSMEs in agriculture and smaller municipalities.
The Bank has committed to support crop farming in Ukraine, by providing €7 million loan in working capital to Grain Alliance.
In Belarus, EBRD will work to bridge a liquidity gap due to adverse market conditions related to the coronavirus crisis and will provide two loans, a €2 million loan to SwoodS Export FLLC and a €5 million loan to VMG Industry FLLC.
The EBRD will boost its support to agribusiness SME clients in Romania and has committed to provide a €5 million multicurrency loan in EUR and RON to Agricover Credit IFN.
In Kazakhstan, the Bank will further its support to small business coping with the impacts of coronavirus and will provide a US$ 40 million loan to Microfinance Organization KMF
The EBRD is teaming up with the Green Climate Fund to support climate resilience technology investments in Mongolia. The Bank has approved a loan of US$ 4 million to XacLeasing.
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|08 June||Turkey||Denizbank||€75 million loan for onlending to MSMEs in agriculture and smaller municipalities||Financial Institutions||Approved|
|09 June||Ukraine||Grain Alliance||€7 million loan to provide working capital||Agribusiness||Approved|
|10 June||Belarus||VMG Industry FLLC||€5 million loan to provide working capital||Manufacturing and Services||Approved|
|10 June||Belarus||Swoods Export FLLC||€2 million loan to bridge liquidity gap||Manufacturing and Services||Approved|
|10 June||Romania||Agricover Credit IFN||€5 million multicurrency loan in EUR and RON to assist small farmers||Agribusiness||Approved|
|11 June||Kazakhstan||Microfinance Organisation KMF||Loan of up to US$ 40 million in KZT equivalent for on-lending to local MSMEs||Financial Institutions||Approved|
|11 June||Mongolia||XacLeasing LLC||US$ 4 million loan under Green Economy Financing Facility Regional Framework||Financial Institutions||Approved|