EBRD launches Transition Report 2020-21: The State Strikes Back
The EBRD launched its Transition Report 2020-21 on Tuesday with a high-profile panel discussion including Chief Economist Beata Javorcik, Mariana Mazzucato, from University College London and Dani Rodrik, from Harvard. The report focused on the size and role of the state in emerging economies and the impact of the coronavirus pandemic.
Sam Fankhauser from the Grantham Institute wrote: “It was fun to contribute once again to the #EBRDtr. Some great insights on the role of the state in the green economy. Thanks @EBRD, and well done @BJavorcik, @helenaschweiger and team.” “One of the most fascinating seminars I’ve watched in quite some time,” said one viewer. “Really interesting ideas coming out of Europe on COVID recovery, green transition and partnerships to deliver growth.”
The event also was a farewell to the moderator Anthony Williams who retired this week as EBRD Director, External Relations. The team putting together the Newsletter every week would like to thank him for many years of inspirational leadership and wish him all the best for the new stage in his life.
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Financial Times op-ed on Transition Report
In an op-ed for the Financial Times, Beata Javorcik discussed the risks associated with a bigger role of the state in the economy. The key question is whether the state’s hand will be a caring or a grabbing hand, she said, while also arguing for an improvement in the governance of state owned enterprises and state banks.
Transition Report in the news
The launch of the Transition Report was also accompanied by a press release and numerous media interviews. The EBRD Chief Economist appeared in Frankfurter Allgemeine Zeitung, Ziarul Financiar, bne IntelliNews and Poland Business Insider, among many other publications.
EBRD joins public development banks on joint declaration to “build back better”
The EBRD has joined forces with public development banks to help overcome the coronavirus pandemic and combat climate change. A joint declaration signed at the Finance in Common Summit in Paris this week commits the banks to support the transformation of the global economy and societies towards sustainable and resilient development.
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EBRD President Renaud-Basso welcomes declaration
“The Covid-19 crisis has demonstrated that only joint action allows us to address the most urgent global challenges effectively and efficiently. In overcoming the crisis, our goal must be to build economies that are sustainable, resilient and inclusive”, said EBRD President Odile Renaud-Basso in a Guardian story about the latest multilateral efforts to overcome the crisis.
Helping to define our green future with the Platform on Sustainable Finance
A significant step forward towards a greener future has been made with the establishment of the Platform on Sustainable Finance, a new body of 50 experts and 10 special observers in the areas of climate, environment, sustainable finance and social or human rights. The Platform is a building-block in the European Union’s ambition to green its economy, set out in the European Green Deal announced last December.
Boosting green finance for SMEs in Egypt
The EBRD, the European Union (EU) and the Green Climate Fund (GCF) are responding to the impact of the coronavirus pandemic on the Egyptian economy by boosting green finance and the development of value chains for SMEs with a package worth €220 million.
Project signings
EBRD and TSKB co-finance chocolate maker Altinmarka…
In Turkey leading cocoa producer and chocolate maker, Altinmarka, is receiving a joint €11 million working capital loan from the EBRD and Turkiye Sinai Kalkinma Bankasi (TSKB), the Industrial Development Bank of Turkey, to enable to keep up with growing demand.
…and wet wipes maker Sapro
The EBRD and TSKB are also jointly providing a €21 million loan to Turkey’s leading wet wipe producer Sapro to support business growth and improve sustainability.
€20 million loan to Banca Intesa Beograd
In Serbia, a loan of up to €20 million by the EBRD to Banca Intesa Beograd will help businesses and municipalities in the country to cope with the economic fallout of the coronavirus pandemic.
€15 million to Intesa Sanpaolo Banka d.d. BiH
In Bosnia and Herzegovina, €15 million funds by the EBRD will on-lent by Intesa Sanpaolo Banka d.d. BiH as short-term capital and liquidity support for private companies affected by a severe fall in demand.
€15 million loan to Procredit Bank Macedonia
A loan of up to €15 million to ProCredit Bank Macedonia (PCBM) will help local micro, small and medium-sized enterprises (MSMEs) in North Macedonia to cope with the economic fallout of the coronavirus pandemic. The EBRD funds will address the liquidity needs of small businesses that are experiencing a decrease in their activities and turnover due to the spread of the virus.
Supporting people’s health in Mongolia
The EBRD’s Advice for Small Businesses Programme in Mongolia is providing support to Otoch Odi, a company producing health-supporting products such as, for instance, black radish teas and dried nettle leaf powder. The project is funded by the European Union,
EBRD in other news
Gas transition in Europe
“You can’t go from coal to renewables without an intermediary step, we believe that gas has to be the intermediary.” EBRD Managing Director for Central and South Eastern Europe, Charlotte Ruhe, told Bloomberg in an interview.
Supporting renewable energy for SMEs
In an interview with SeeNews EBRD Director for the Western Balkans Zsuzsanna Hargitai set out the Bank’s plans for the region. "First, we’ll support private enterprises to recover, grow, innovate and be more resilient to shocks – through digitalisation, becoming exporters or be part of European supply chains and better manage human resources to have a diverse, well-skilled labour force."
Catching up is hard to do
Setting out the challenges, but also the opportunities, for the Western Balkans in their drive to move closer to the European Union, EBRD Regional Lead Economist Peter Tabak spoke to Austria’s Die Presse and Luxembourg’s Tageblatt. He warned that the countries need to boost their growth to accelerate convergence with the EU: "The most important thing is to concentrate on the creation of independent, well-run and effective institutions."
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