EBRD

EBRD (European Bank for Reconstruction and Development), multilateral bank established to provide advice and loans to countries of eastern and central Europe and Central Asia “which are committed to, and applying, the principles of multi-party democracy and market economics”. It also encourages privatization, entrepreneurial initiative, investment, and other forms of sustainable development. The EBRD, inaugurated on April 15, 1991, was initially proposed by President François Mitterrand of France. It originally had 41 members, including the European Commission, the European Investment Bank (EIB), the United States, Japan, all the European Union (EU) and European Free Trade Association countries (except Liechtenstein), and all the countries of eastern and central Europe, except Albania. Membership has since risen, largely as a result of the admission of several former communist countries.

Most of the total shareholding is held by the EU countries, the European Commission, and the EIB; the rest is held by the United States, Japan, eastern and central European countries, and the other EBRD members, including Australia, Canada, New Zealand, and South Korea. Most of the committed funding goes to private enterprises, or to state-owned enterprises moving towards private ownership and control. Borrowers may receive a maximum 35 per cent of their total capital. Through its Technical Cooperation Fund Programme, the EBRD provides loans for technical assistance and training. The EBRD also acts as the administrator of the Nuclear Safety Account (NSA). The EBRD's headquarters are in London.