We are rapidly increasing our support for our regions in the face of the coronavirus pandemic and now anticipate committing all our activity in 2020/2021 to helping the 38 emerging economies where we invest to combat its economic impact.
EBRD shareholders have approved a comprehensive series of response and recovery measures that will significantly enhance our Solidarity Package, first unveiled on 13 March. We now stand ready to provide support worth €21 billion up until the end of 2021.
We are already adapting and scaling up existing instruments and developing new initiatives to provide finance and policy support to help combat the immediate threat from the virus.
Crucially, we are also preparing our countries for the post-virus era and to safeguard everything they have achieved so far in building sustainable, fair and open market economies.
In an era of considerable policy uncertainty, we will, more than ever before, be providing governments with high quality, straightforward and usable policy advice.
More about the Solidarity Package
- A central pillar of our Solidarity Package is a Resilience Framework providing finance to meet the short-term liquidity and working capital needs of existing clients. (Existing clients are understood as partners who have an outstanding EBRD Loan or equity investment - or who have repaid or exited since 1 January 2019.) Demand has so far been strong and, as part of the scaled up response, financing available under the Framework will increase to €4 billion from €1 billion until a further assessment of needs before the end of this year. We have widened the framework’s scope to include the affiliates of existing clients.
- We will expand financing under our Trade Facilitation Programme, keeping open the channels of commerce.
- We will also offer fast track restructuring for distressed clients.
- We will enhance established frameworks that can reach out especially to small and medium-sized enterprises (SMEs) and corporates that are not yet our clients, making the real economy more resilient.
- Another element in the Solidarity Package is a new Vital Infrastructure Support Programme to meet essential infrastructure requirements, including financing for working capital, stabilisation and essential public investment.
The emergency channels will target all sectors of the economy, but especially those badly affected by the crisis, including financial institutions, SMEs and corporate sectors such as tourism and hospitality, automotive and transport providers, agribusiness, and medical supplies.
The EBRD will focus primarily on the rapid provision of debt needed to respond to the challenges our regions face in this phase of the crisis. As the situation evolves, we will also ramp up our local currency, capital markets and equity offers.
While recognising that in these circumstances business cannot continue as usual, the EBRD will continue to subject its projects to all normal requirements, while maintaining our high standards of accountability.
Nor will we lose sight, in our overall activity, of our other key priorities, including the transition to the green economy, promoting equality of opportunity, accelerating the digital economy and strengthening good governance.
New video highlights Bank’s response to coronavirus pandemic
The EBRD is well-placed to support our clients, partners and the regions where we work:
1. Our capital position is strong: stronger than before the global financial crisis of 2008/9. We can continue making sound investments – even in the case of a severe scenario with a prolonged pandemic, contraction and U‐shaped recovery. Our net profits for 2019 were a record €1.4 billion, a sharp increase from €340 million the previous year.
2. The EBRD has strong relationships with the governments in the countries where it operates and it will work with the relevant authorities on how the EBRD can best respond to the crisis.
3. It has very close relationships with its clients and will help formulate the response to the crisis
4. The EBRD’s Resident Office network gives the Bank unrivalled capacity for business continuity, as our local staff originate and monitor our crisis response on the ground.
At all times we are closely following the statements of our major shareholders and coordinating with other multilateral development banks in order to exchange ideas and learn from each other's experiences.