The European Bank for Reconstruction and Development (EBRD) has adopted a new country strategy for the Czech Republic focusing on supporting the green and inclusive economic recovery from the Covid-19 crisis.
In response to a request by the Czech authorities triggered by the severe economic impact of the pandemic the EBRD agreed earlier this year to resume investing in the country. The EBRD’s re-engagement will be temporary and not exceed a period of up to five years. It will be limited in scope and focused on the private sector.
The newly adopted country strategy creates the foundation for this engagement. The document states that the EBRD will apply its skills, knowledge and products to help reboot the Czech economy. The Bank will provide an additional source of funding, ensuring the complementarity of its offer with the European Union’s Recovery and Resilience Facility. With its approach the EBRD will focus on equity, capital market transactions and structured financed.
The EBRD will also support the country’s reform agenda, in particular in relation to climate change adaptation and in line with its commitments under the Paris Agreement. The Bank is also available to work with Czech partners to assist other countries of operations in their transition process, including through regional projects, knowledge sharing and cross-border investment.
The EBRD stopped investing in the Czech Republic at the end of 2007 following the country’s request to graduate from being a recipient of the Bank’s funds. However, the Czech Republic always remained a shareholder of the EBRD and supported Czech companies in third markets. The new approach will be reviewed after three years.