European Bank for Reconstruction and Development (EBRD)
History. The European Bank for Reconstruction and Development was established in 1991 when communism was collapsing in central and eastern Europe and ex-Soviet countries needed support to nurture a new private sector in a democratic environment.
Activities. The EBRD is the largest single investor in the region and mobilizes significant foreign direct investment beyond its own financing. It is owned by 64 countries and two intergovernmental institutions. But despite its public sector shareholders, it invests mainly in private enterprises, usually together with commercial partners. Today the EBRD uses the tools of investment to help build market economies and democracies in 30 countries from Central Europe to Central Asia.
It provides project financing for banks, industries and businesses, for both new ventures and investments in existing companies. It also works with publicly-owned companies, to support privatization, restructuring of state-owned firms and improvement of municipal services. The EBRD uses its close relationship with governments in the region to promote policies that will bolster the business environment. Respect for the environment is part of the strong corporate governance attached to all EBRD investments.
Organization. All the powers of the EBRD are vested in a Board of Governors, to which each member appoints a governor, generally the minister of finance or an equivalent. The Board of Governors delegates powers to the Board of Directors, which is responsible for the direction of the EBRD’s general operations and policies. The President is elected by the Board of Governors and is the legal representative of the EBRD. The President conducts the current business of the Bank under the guidance of the Board of Directors.
Headquarters: One Exchange Square, London EC2A 2JN, UK.
President: Sir Suma Chakrabarti (India).
Secretary-General: Enzo Quattrociocche (Italy).