Donor support plays a key role in scaling the Local Currency and Capital Markets Development (LC2) Initiative’s capabilities in the fields of technical cooperation projects, advisory work as well as policy reform.
Generous funding and active engagement from donors has allowed the LC2 Initiative to create critical linkages between policy reform and banking investments while promoting enhanced regulations and more liquid markets.
Donor contributions to the LC2 Initiative to date include:
Japan made a contribution of €5 million in 2016, to support the SME Local Currency programme in the ETCs, including €2.65 million for the SME Local Currency Special Fund and €2.35 million for TC programmes. The programme will help implement reforms and develop local capital markets, and enhance access to affordable local currency funding for SMEs;
Korea, a long-standing LC2 partner, awarded grants for assessing the feasibility and market viability for the development of exchange-traded derivative markets in Mongolia, Romania and Ukraine.
The TaiwanBusiness EBRD Technical Cooperation Fund has backed a project that aims to increase access to finance for SMEs based in Croatia and Slovenia.
The Middle East & North Africa (MENA) Transition Fund has facilitated the set-up of a Central Securities Depository for Government Securities in Egypt. This is the largest TC managed by EBRD so far ($6.7 million).