The bank provides long-term financing (5-10 years or more)
The EBRD attracts other banks to its projects (particularly through syndication), private equity funds, strategic partners, global industry leaders
Thanks to the presence of representations in all federal districts Russian Federation and almost 20 years of operations in Russia, the EBRD has deep knowledge of the Russian economy
The Bank helps clients achieve higher efficiency of operations, works on optimization of corporate, financial structure. At the same time, the best domestic and foreign consultants are involved. The EBRD also offers clients free energy efficiency audits.
The EBRD offers financing solutions that best meet the needs of clients:
1. Tool: The Bank can provide not only secured loans, but also equity investments, subordinated and unsecured loans, leasing, trade finance, guarantees. A combination of instruments may also be considered. The choice of tool is determined by the characteristics of each specific project;
2. Payment schedule: depending on the instrument, it is possible to structure the disbursement of the provided financing in different ways. The repayment of the loan body can be distributed evenly or postponed to the end of the term. It is also possible to defer repayment for the period of construction;
3. Currency: depending on the needs of the client, financing can be provided in rubles, dollars or euros. The interest rate can be fixed, which is of particular value at low floating rate levels (Libor, Euribor and Mosprime).

European Bank for Reconstruction and Development

World economy

Completed by: Medvedev D.A.

Kryshen E.L.

Checked by: Medvedev A.G.

St. Petersburg

2. Introduction ............................................... ................................................. ............................... 3

3. Facilitating the transition process............................................................... ......................................... 3

4. EBRD financing............................................................... ................................................. ....... four

4.1. Credits .................................................. .........................

4.2. Share capital .................................................................. ................................................. ........... 5

4.2.1. Participation in the equity capital of banks .............................. Error! The bookmark is not defined.

4.3. Direct Financing Instruments .............................................. Error! The bookmark is not defined.

4.4. Guarantees................................................. ................................................. ............................... 6

4.5. Instruments for financing SMEs .............................................................. ......................................... 6

5. EBRD and co-financing ............................................... ................................................. 7

5.1. Reasons for attracting other investors .............................................................. ................................. 7

6. Rates loan interest and conditions ................................................ ........................... eight

6.1. Insurance................................................. ................................................. ....................... eight

6.2. Security................................................. ................................................. ...................... eight

7. Requirements for projects............................................... ................................................. ...... eight

8. Environmental procedures ............................................................... ................................................. 9

8.1. Environmental policy .................................................................................. .................... 9

8.1.1. EBRD environmental mandate .............................................................. ......................................... 9

8.1.2. General principles and tasks .................................................. ............................................. 9

9. EBRD core business results in 1997 .............................................................. ... ten

10. Bibliography............................................... ................................................. ................... eleven

1. Introduction

The European Bank for Reconstruction and Development (EBRD) was established in 1991. It exists to facilitate the transition to open economy market-oriented, as well as the development of private and entrepreneurial initiatives in the countries of Central and of Eastern Europe and the Commonwealth of Independent States (CIS), committed to and implementing the principles of multi-party democracy, pluralism and a market economy.

In facilitating the transition to a market-oriented system, the Bank provides direct financing for private sector activities, structural adjustment and privatization, as well as financing for the infrastructure that supports such activities. His investments also help to build and strengthen organizational structures. The main forms of EBRD financing are loans, equity investments (shares) and guarantees. Based in London, the EBRD is international organization, which has 60 members (58 countries, European Community and European investment bank). Each member country is represented on the Board of Governors and the Board of Directors of the Bank. In accordance with the Agreement Establishing the Bank, the EBRD works only in countries committed to and implementing the principles of multi-party democracy, pluralism and market economies. Compliance with these principles is carefully monitored.

The strength of the Bank lies in its deep knowledge of the region of operations. Being one of the largest foreign investors funding private sector region, the EBRD is aware of the challenges and potential of each of its 26 countries of operations. Working closely with private investors, the Bank's staff understand their concerns about investing in the region, as well as political and economic uncertainty.

In order to coordinate activities on the ground, the EBRD has opened 28 offices in all but one of its countries of operations. These offices are fully involved in the process of developing new projects and overseeing the Bank's growing number of operations. Representations staffed by foreign and local specialists are playing more and more important role in expanding the Bank's work in the region.

A doubling of the Bank's capital to ECU 20 billion became a reality in April 1997, allowing the Bank to continue to meet the growing demand for its services and maintain financial self-sufficiency.

By the end of 1997, the EBRD had signed a total of ECU 10.26 billion of projects supporting activities in all 26 countries of operations. The EBRD's operating profit in 1997 was ECU 193.8 million, almost doubling its 1996 profit. Taking into account the growth of the portfolio and the prioritization of the accumulation of reserves, the total amount of reserves reached ECU 508 million.

2. Facilitate the transition process

Different countries are at different stages of the process of transition to a market economy. Local conditions determine the way the Bank operates, its strategy, and in some cases lead to the development of innovative ways to finance and mitigate risks. The bank is preparing detailed strategies for each country of operations, tailoring its financial instruments and working methods to the capabilities and needs of each country and each project. The level and nature of the demand for EBRD financing depends on the stage of the transition process in which a country is located and on its attractiveness to private investors.

As the transition to a market economy continues, new opportunities are emerging, and in some other areas the need for the Bank's involvement is reduced. Thus, the EBRD's activities are guided by the transition process. Creating an environment conducive to investment inflows depends primarily on the countries of operations. In response to changing opportunities and needs, the Bank is increasing its annual equity commitments and expanding funding to intermediaries for on-lending to SMEs. As a leading investor in the region, the EBRD sets the tone for other investors. His meticulous the financial analysis provides funding for healthy and sustainable businesses that, by their existence, should have a lasting impact on the transition process.

As EBRD funds are limited, the Bank has to be efficient and have the greatest possible impact on the transition through its projects. The Bank emphasizes the importance of "demonstrative impact", which allows individuals and enterprises to learn by participating in a process or observing the content of projects and the success or failure of their implementation. Many EBRD projects provide a clear indication of what type of project can be successful in a given industry or country.

The Bank promotes institutional strengthening and the creation of an entrepreneurial and legal environment conducive to the development of the private sector. The primary task of the EBRD is to ensure the formation financial institutions and strengthening their role. Financial institutions play a critical role in the transition to a market economy, as they have the ability to direct funds to appropriate niches, promote capital accumulation, facilitate trade and create acceptable standards. financial discipline.

3. EBRD financing

EBRD financing depends on the specifics of projects and is provided both for strengthening financial institutions or structural reorganization large companies, and in the form of small loans to companies with only a few employees. Major investments or infrastructure projects (whether private or involving local or central governments) are financed directly by the Bank, often with partners. small investment are made through financial intermediaries: local banks or investment funds. The EBRD works closely with many other international organisations, in particular with international financial institutions (IFIs), such as The World Bank, European Investment Bank and International Monetary Fund. At the same time, it plays its own unique role, and it has different (unlike other, older organizations) strengths. Key Feature What sets the EBRD apart from other development banks is its support for the private sector, which is at the core of the EBRD's mandate, which states that at least 60% of the Bank's funding must go to the private sector. In 1997, private sector liabilities amounted to 76% by value, bringing private sector transactions to 67% of total liabilities.

The Bank seeks primarily to help companies that have difficulty obtaining financing from other sources. It places particular emphasis on small and medium-sized enterprises (SMEs), which play a critical role in the development of the private sector. One of the Bank's strengths is its wide range of financing instruments and the knowledge of its staff, which enables it to operate in both the public and private sectors when project companies move from public to private ownership. Acting like commercial Bank and the Development Bank, the EBRD provides funds for private enterprises or enterprises that may be privatized, as well as for physical and financial infrastructure projects in support of the private sector.

In all its activities, the Bank operates on the basis of sound banking principles. In addition, it aims to act "in addition" to the private sector and not compete with or replace other private sources of finance. The Bank is also committed to ensuring that the impact of its investments goes beyond specific projects and stimulated the process of transition to an open market economy. It is guided in its activities by the need to promote environmentally sound and sustainable development, as well as by relevant principles for the procurement of goods and services. The Bank is committed to sound corporate governance, including sound management practices, disclosure of information and clear and consistent practices accounting and audit. The purpose of this is to ensure that EBRD borrowers can obtain capital not only from international financial institutions but also from a range of other sources.

One of the Bank's main strengths is its willingness and ability to take risks, which is explained by the composition of its shareholders. This enables the EBRD to push the boundaries of business opportunities in its countries of operations. It also assumes some of the risk of the project by working with other private sector entities such as commercial banks and investment funds, as well as with multilateral credit organizations and government export credit agencies.

Possessing the highest credit rating(AAA), the Bank may raise funds in the international capital markets on the most best conditions. The EBRD's long-term relationship with its countries of operations allows it to mitigate some of the risks, making it an attractive partner. His experience helps him assess risks, and his access to technical cooperation funds allows him to carefully prepare projects. EBRD effectiveness in expansion investment activity in the region is emphasized by its ability to attract significant funds from co-financiers. At the end of 1997, for every ECU invested by the EBRD itself, an additional ECU 2.3 was raised from other sources. Building on its strengths, flexibility and agility, the EBRD is at the forefront of the transition process.

3.1. Credits

The EBRD provides loans, the terms of which take into account the specific requirements of the project. The bank can take credit risk either completely to your balance, or to syndicate part of it on the market. The loan may be backed by the sponsor's assets and/or be convertible into shares or include equity participation. The Bank makes loans (and consequently requires them to be repaid) in any of the hard currencies, mainly in US dollars, Deutsche Marks and ECU, but it has already begun to fund loans or raise funds for them in a number of local currencies.

When lending to commercial enterprises, the Bank generally does not require guarantees from a particular government of the country, and, as a rule, loans are provided without the right to foreclose on foreign sponsors after the start of the project. The basis for issuing a loan is the cash flow under the project and the possibility provided for in the project to repay the loan within the agreed period. Loans from international institutions such as the EBRD are traditionally excluded from public debt when restructuring it, and thus these institutions have the status of a preferred creditor. When the EBRD is the lead lender, banks participating in EBRD loans to private sector borrowers may also benefit from preferred lender status.

3.2. Share capital

Equity investment can take a variety of forms, including subscriptions to common or preferred shares. Investments in quasi-equity are also offered, ranging from subordinated loans, debt obligations and income-generating bills to freely redeemable preferred shares. When acquiring an equity interest, the EBRD expects to receive an appropriate return on investment. He always has a clear plan for withdrawing his funds and always acts as a small depositor. The EBRD may also guarantee the placement of shares issued by a public or private enterprise. EBRD guarantees can help borrowers access financing and share risk in accordance with the wishes of the EBRD and its financing partners. The same credit criteria apply as for direct loans.

The Bank is ready to consider financing the transfer of shares of existing enterprises only in cases of their privatization, when such a transfer will clearly increase the efficiency of the enterprise (for example, by improving management, reconstructing or expanding it under the leadership of new owners, or merging it with the structures of the company that absorbed it).

3.3. Guarantees

The EBRD can help borrowers access capital by providing guarantees. There are guarantees various types ranging from guarantees against all risks to partial guarantees for specific risks, but in all cases, the maximum risk must be known and measurable, and the credit risk must be acceptable.

3.4. SME finance instruments

The EBRD has established relationships with a range of financial intermediaries to provide financing for projects that are too small to be financed directly. This allows the Bank to support SMEs, a category of enterprises that is critical to building a strong private sector.

Credit lines . The EBRD directly provides medium and long-term financing in the form of credit lines a number of financial intermediaries to meet the corresponding demand for loans. AT individual cases the EBRD provides similar long-term financing to governments, which then channel these loans through commercial or investment banks to finance private SMEs.

Co-financing . From time to time, the EBRD enters into framework financing agreements with local banks and investment funds, under which the bulk of the mandatory subproject screening work is transferred to the local partner, but every lending decision takes into account the EBRD's financing and lending principles.

Share in investment funds . The EBRD participates in investment funds, which in turn invest in private medium-sized companies in need of expansion.

Trade facilitation . Through its trade facilitation programmes, the EBRD seeks to help local banks build a strong reputation and gain greater international exposure. financial markets. Under these programmes, the EBRD usually issues guarantees partial payment transactions arranged by participating local banks and settled by letters of credit.

4. EBRD and co-financing

The EBRD seeks to involve co-financiers in its operations – it typically limits its participation in private sector projects to 35%. By acting as a catalyst to attract other investors to the region, the EBRD can use its funds to support a wider range of projects. As a result of the successful raising of capital from external sources to finance projects sponsored by the Bank, the total amount of funds available for financing other projects is increasing. to potential external sources financing includes commercial banks and financial institutions, export credit agencies and other official sources (such as: government programs development assistance). Co-financing facilitates familiarization of international capital markets and commercial lenders with borrowers in countries of operations and attracts foreign direct investment. For many borrowers, access to commercial co-financing provided by an international financial institution is the first step in gaining self-reliance on commercial capital markets.

External funding comes from commercial and official sources. The EBRD's main co-financing partners, other than private companies, are commercial banks (for example, as members of EBRD consortiums), other international financial institutions, bilateral financial institutions or government development assistance programmes, and export credit agencies engaged in direct lending.

The EBRD has established good working relationships with leading commercial banks, other organizations and companies operating in the region. Ten more commercial banks became participants in EBRD syndicated loans in 1997, bringing the total number of consortia participants to 115. Co-financing with commercial banks for the year amounted to ECU 937.3 million. Official co-financiers participated in 30 projects in 1997 and contributed ECU 445.5 million in total, the largest co-financing in a year with bilateral institutions since the EBRD's inception. Eight projects were co-financed with other international financial institutions and amounted to ECU 324 million.

4.1. Reasons for attracting other investors

· Risk Sharing – The EBRD wants to ensure that organizations with direct experience in this field are willing to risk their money to support a project that they believe is worthwhile.

· Incentive – The EBRD wants to encourage other financiers to participate in the project, either by providing loan funds or by acquiring an equity stake in the project.

Parallel financing - is carried out in cases where loans from the EBRD and co-financing participants are used to finance separate sets of goods and services.

Syndication is the process by which the EBRD searches for other financial institutions that will agree to lend on the basis of documents submitted by the Bank on terms and conditions substantially similar to those on which the Bank itself is willing to lend. Syndicated participation occurs when the EBRD undertakes to finance the entire loan and, during or after the loan is made, sells the interest to another bank or banks. In these cases, the EBRD remains liable for the entire amount, but finances part of its liability from the purchaser(s) of the interest(s).

5. Interest rates and conditions

Credit rates and project schemes are considered in conjunction with each other as they are related to market conditions. Measures are being taken to identify and limit risks on EBRD loans. The Bank operates as a commercial enterprise and provides its loans at market rates, taking into account such risks.

The risk assessment takes into account the EBRD's position as an international institution and, in particular, its status as a preferred lender.

Interest rates set at a margin above the base market rate (usually LIBOR - the London Interbank Offered Rate). Loans can be provided either at floating or fixed rates, or in combination with a range of hedging instruments, depending on whether the transaction is in the derivatives market. valuable papers.

Credit margin reflects both country and commercial risks and is in line with syndicated loan market conditions. grace periods repayments are negotiable and the maturity of the loans is typically between 5 and 10 years, depending on the requirements of the particular operation. The repayment of the principal amount is usually made in installments in equal installments every six months. When lending to infrastructure projects, in exceptional cases, more than long terms repayment, for example, up to 15 years.

5.1. Insurance

When financing the EBRD, it requires the companies or institutions it finances to ensure that they insurance coverage usually insured risks (for example, the risks associated with theft of funds, fire, as well as specific risks during construction). It does not require political risk insurance or the non-convertibility of the local currency.

5.2. Security

The EBRD generally requires companies or organizations it finances collateral loan with project assets, which may include the following: a mortgage on fixed assets, a mortgage on movable property, the assignment of the company's proceeds in hard and local currencies, the pledge of the company's shares owned by the sponsor, as well as the assignment of the company's rights to receive insurance compensation and other benefits arising from the contract.

6. Requirements for projects

As EBRD funds are limited relative to the region's needs, Bank financing can only have a limited impact. The main focus of the Bank is on the quality of the projects it finances, as well as on the opportunities it has to improve the efficiency of projects. The Bank must continuously strive for the "multiplier effect" of the projects it finances, such as the visibility of additional benefits for the country's economy, attracting co-financing or removing bottlenecks in infrastructure.

One of the main channels of financing through the EBRD is through joint ventures with foreign participation. Joint ventures give partners real opportunity access to external and domestic markets, facilitate the inflow of foreign private capital into the region, reduce risk and facilitate the transfer of technology and managerial expertise.

In an effort to provide a financing scheme that best meets the requirements of the project, the Bank is guided by the following basic principles.

1. The EBRD finances up to 35% of the total cost of a greenfield project or 35% of the long-term capitalization of an existing company.

2. Significant equity contributions are required from other investors, in particular industrial ones, for greenfield or new projects. joint ventures when special technical and managerial qualifications are required. In such cases, industrial sponsors expect to receive either a controlling stake or sufficient rights to manage the enterprise.

3. Typically, no more than two-thirds of the amount of borrowed funds and no less than one-third of the equity capital is provided for projects in the private sector.

4. Additional funds are usually required from other co-financers.

5. The Bank does not normally provide financing to an investor for the acquisition of already issued or newly issued shares.

6. Sponsors' shareholding does not have to be in the form of cash only, it can be provided in the form of equipment, machinery, machinery, etc. Each project is evaluated against the respective country strategy. Country strategies are approved by EBRD shareholders, form the basis banking operations and prioritize specific areas of action.

7. Environmental procedures

7.1. Environmental policy

7.1.1. EBRD environmental mandate

The Agreement Establishing the EBRD also requires the Bank to “promote in all its activities environmentally sound and sustainable development” (Article 2.1). The EBRD is the first international financial institution to have been given such a proactive environmental mandate by its founders.

The environmental mandate reflects the recent history of the EBRD's region of operations. Environmental degradation in the countries of Central and Eastern Europe and the former Soviet Union is largely the result of past misguided and unbalanced policies and practices. This had a devastating effect on both the economy and the environment.

7.1.2. General principles and tasks

Through environmental appraisals, the EBRD ensures the environmental soundness of its projects and the monitoring of their environmental performance. It seeks to provide additional environmental benefits through its projects, especially if these projects also provide economic benefits.

The EBRD attaches particular importance to projects that improve energy and resource efficiency, reduce waste, recover and recycle used resources, use cleaner technologies, expand the use of renewable resources, and other projects with a primary focus on environmental protection. The EBRD plays a significant role in financing the elimination of serious environmental problems.

Implementation of the Bank's environmental policy priorities is ensured at all stages of the project appraisal process. The Bank's procedures in this area include selection, studies such as sponsored environmental assessments and audits, environmental reviews, inclusion of environmental conditions in juristic documents and environmental supervision and evaluation of projects. The Bank's Environmental Review Section determines the form of environmental surveys to be conducted by sponsors or sponsors prior to the concept approval phase of a project, as well as requirements for public opinion surveys. Particular importance is attached to measures that reduce the adverse environmental impacts of projects or improve the state of the environment or occupational health and safety at work.

8. Results of the main activities of the EBRD in 1997

In 1997, the EBRD significantly increased the number of approved projects, commitments and disbursements, exceeding annual operational targets. The Board of Directors approved projects worth over ECU 4 billion and the value of projects signed by the Bank this year was over ECU 2.3 billion, the sixth consecutive annual increase. Gross disbursements were 50% higher than in 1996, at ECU 2 billion. During the year, funds were disbursed in all the Bank's countries of operations.

Tab. 1, EBRD activities in 1997

9. Bibliography

1. Financing - A guide for companies and entrepreneurs considering financing projects or investing in Central and Eastern Europe and the CIS, EBRD, 1998

2. Environmental Policy September, EBRD, 1996

3. Alternative sources financing, EBRD, 1996

4. Financing the transition to a market economy in Central and Eastern Europe and the Commonwealth of Independent States, EBRD, 1996

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The European Bank for Reconstruction and Development (EBRD) was established in 1991 to assist the countries of Central and Eastern Europe and the Commonwealth of Independent States (CIS) in establishing a market economy after the collapse of the administrative-command system. In facilitating the transition to a market-oriented economy, the Bank provides direct financing for private sector activities, structural adjustment and privatization, as well as financing for the infrastructure that supports these activities. His investments also help to build and strengthen organizational structures. The main forms of EBRD financing are loans, equity investments (shares) and guarantees.

Based in London, the EBRD is an international organization with 60 members (58 countries, the European Community and the European Investment Bank). Each member country is represented on the Board of Governors and the Board of Directors of the bank.

Functions of the EBRD. The EBRD supports member countries in implementing structural and sectoral reforms, including de-monopolization and privatization, in order to fully integrate their economies into world economy by promoting:

Organization, modernization and expansion of production, competitive and private business activities, especially small and medium-sized enterprises;

Mobilization of national and foreign capital and their effective management;

Investments in production in order to create a competitive environment and increase its efficiency, quality of life and improve labor productivity;

Providing technical assistance in the preparation, financing and implementation of projects;

Stimulating and encouraging the development of capital markets;

Implementation of solid and economically viable projects involving more than one recipient country;

Environmentally sustainable development.

Managment structure. 1. board of governors, in which each member of the EBRD is represented by one governor and one deputy governor, is the supreme body that determines the main directions of the Bank's activities. Meetings are held once a year, additional meetings may be called by the Board of Governors or the Directorate. The Board of Governors may fully or partially delegate its powers to the Directorate, except for the admission and determination of the conditions for the admission of new members, changes in the size of the statutory fund, suspension of membership, election of directors and the president, determination of the salaries of directors and deputy directors, approval of the general balance sheet, amendment of the Articles of Association and termination of the Bank's operations. At the same time, the Board of Governors retains full power in relation to all tasks the implementation of which is entrusted to the Directorate. The number of votes held by each member is equal to the number of votes of its subscribed shares in the share capital of the Bank.

2. EBRD President elected for four years (re-election possible) by the Board of Governors by a simple majority vote of the total number of Governors. The President leads current affairs as directed by the Directorate. He chairs the meetings of the Directorate and may take part in the meetings of the Board of Governors. He is an authorized representative of the Bank. As head of the Bank's staff, the President is responsible, in accordance with the rules established by the Directorate, for the organization of the EBRD's work and for the hiring and dismissal of staff members. Vice-Presidents are appointed on the recommendation of the President by the Directorate, which determines the terms of office, as well as their powers and functions.

3. Board of Directors - it is the main executive body. He is in charge of the current issues of the Bank's work. The Directorate makes decisions regarding the provision of loans, guarantees for equity investments, attraction of loans and provision of technical assistance. It approves the EBRD budget.

4. Environmental Advisory Board consists of environmental experts from Central and Eastern Europe and from OECD countries, as well as environmental policy and strategy consultants related to the Bank's "environmental mandate".

Capital. The Bank's capital resources include authorized capital, borrowed funds and funds received for the repayment of loans or guarantees of the Bank, income derived from the Bank's investments, and any other financial resources and income that is not part of the resources of its special funds. A number of foundations have been created under the Foundation Agreement:

1) with the participation of Denmark, Iceland, Norway, Finland and Sweden - Baltic Special investment fund promoting the private sector by supporting small and medium-sized enterprises in the Baltic countries, as well as the Baltic Special Technical Assistance Fund to promote the development of a market economy in these countries;

2) Russian Special Fund for Small Business for the Development of the Private Sector;

3) Russian Special Fund for Technical Assistance to Small Business.

A doubling of the Bank's capital to €20 billion became a reality in April 1997. This enabled the Bank to continue to meet the growing demand for its services and maintain financial self-sufficiency.

EBRD financing. EBRD financing is project specific, ranging from the strengthening of financial institutions or the restructuring of large companies to small loans to companies with only a few employees. Large investments or infrastructure projects (whether private or involving local or central authorities) are financed directly by the Bank, often jointly with partners. Small investments are made through financial intermediaries: local banks or investment funds.

A key feature of the EBRD, which distinguishes it from other institutions, is its support for the private sector, which is the essence of the EBRD's Charter, which requires that at least 60% of the Bank's financing be directed to the private sector.

The Bank seeks to help first of all companies that are experiencing difficulties in obtaining financing from other sources. It places particular emphasis on small and medium-sized enterprises, which play a critical role in the development of the private sector. Acting as a commercial and development bank, the EBRD provides funds for private enterprises or those that may be privatized, as well as for physical and financial infrastructure projects in support of the private sector.

The organization arose at a time when the socialist political system was changing in the states of Central and Eastern Europe and the countries of the former Soviet bloc needed support to create a new private sector in the transition to a market economy.

The EBRD is the largest investor in the region and, in addition to lending its own funds, attracts a significant amount of direct foreign investment. However, although its shareholders are government representatives, the EBRD invests primarily in private enterprises, usually in partnership with its commercial partners.

It provides project financing for banks, enterprises and companies, investing in both new production facilities and existing firms. He also works with state-owned companies to support their privatization and restructuring processes, as well as to improve public utilities. The EBRD uses its close ties with governments in the region to pursue a policy of creating an enabling environment for doing business.

Like the IBRD, the EBRD raises funds through the issuance of bonds. A feature of the EBRD operations is the wide attraction of funds in national currencies Eastern European countries, including the Russian ruble.

EBRD Charter

The EBRD's charter provides for its activities only in those countries that are committed to the principles of "democracy". Caring for the environment is an integral part of a sound corporate governance system and is featured in all of the EBRD's investment activities.

In all its investment activities, the EBRD must:

contribute to the formation of a full-fledged market economy in the country, that is, to ensure the effect of influencing the transition process;
take risks in order to assist private investors, but without crowding them out of the market;
apply sound banking principles.

Through its investments, the EBRD contributes to:

carrying out structural and sectoral reforms;
development of competition, privatization and entrepreneurship;
strengthening financial institutions and legal systems;
developing the necessary infrastructure to support the private sector;
implementation of a reliable corporate governance system, including for the purpose of solving environmental problems.

As a catalyst for change, the EBRD:

stimulates co-financing and attraction of direct foreign investments;
attracts domestic capital;
provides technical assistance.

Functions of the EBRD

The EBRD supports member countries in their structural and sectoral reforms, including de-monopolization and privatization, to fully integrate their economies into the global economy by promoting:

organization, modernization and expansion of production, competitive and private business activities, primarily small and medium-sized enterprises;
mobilization of national and foreign capital and their effective management;
investments in production in order to create a competitive environment and increase its efficiency, quality of life and improve labor productivity;
providing technical assistance in the preparation, financing and implementation of projects;
stimulating and encouraging the development of capital markets;
implementation of solid and economically viable projects involving more than one recipient country;
environmentally sustainable development.

EBRD governance structure

1. The Board of Governors, in which each member of the EBRD is represented by one Governor and one Alternate Governor, is the supreme body that determines the main directions of the Bank's activities. Meetings are held once a year, additional meetings may be called by the Board of Governors or the Directorate. The Board of Governors may fully or partially delegate its powers to the Directorate, except for the admission and determination of the conditions for the admission of new members, changes in the size of the statutory fund, suspension of membership, election of directors and the president, determination of the salaries of directors and deputy directors, approval of the general balance sheet, amendment of the Articles of Association and termination of the Bank's operations. At the same time, the Board of Governors retains full power in relation to all tasks the implementation of which is entrusted to the Directorate. The number of votes held by each member is equal to the number of votes of its subscribed shares in the share capital of the Bank.

2. The President of the EBRD is elected for a term of four years (re-election is possible) by the Board of Governors by a simple majority vote of the total number of Governors. The President manages day-to-day affairs in accordance with the instructions of the Directorate. He chairs the meetings of the Directorate and may take part in the meetings of the Board of Governors. He is an authorized representative of the Bank. As head of the Bank's staff, the President is responsible, in accordance with the rules established by the Directorate, for the organization of the EBRD's work and for the hiring and dismissal of staff members. Vice-Presidents are appointed on the recommendation of the President by the Directorate, which determines the terms of office, as well as their powers and functions.

Bank presidents:

April 1991 - July 1993: Jacques Attali
July 1993 - September 1993: i. about. Ron Freeman
September 1993 - January 1998: Jacques de Larosiere (fr. Jacques de Larosiere)
January 1998 - September 1998: i. about. Charles Frank
September 1998 - April 2000: Horst Köhler (German: Horst Kohler)
April 2000 - July 2000: i. about. Charles Frank
July 2000 - July 2008: Jean Lemierre
July 2008 - present Thomas Mirow

3. The Board of Directors is the main executive body. He is in charge of the current issues of the Bank's work. The Directorate makes decisions regarding the provision of loans, guarantees for equity investments, attraction of loans and provision of technical assistance. It approves the EBRD budget.

4. The Environmental Advisory Board is composed of environmental experts from Central and Eastern Europe and OECD countries, as well as advisors on environmental policy and strategy related to the Bank's “environmental mandate”.

EBRD Capital

The capital resources of the Bank include authorized capital, borrowings and funds received for the repayment of loans or guarantees of the Bank, income derived from the Bank's investments, and any other financial resources and income that are not part of the resources of its special funds. A number of foundations have been created under the Foundation Agreement:

with the participation of Denmark, Iceland, Norway, Finland and Sweden - the Baltic Special Investment Fund to promote the private sector by supporting small and medium-sized enterprises in the Baltic countries, as well as the Baltic Special Technical Assistance Fund to promote the development of market economies in these countries;
Russian Special Fund for Small Business for the Development of the Private Sector;
Russian Special Fund for Technical Assistance to Small Business.

EBRD financing

EBRD financing is project specific, ranging from the strengthening of financial institutions or the restructuring of large companies to small loans to companies with only a few employees. Large investments or infrastructure projects (whether private or involving local or central authorities) are financed directly by the Bank, often jointly with partners. Small investments are made through financial intermediaries: local banks or investment funds.

EBRD performance indicators

In 2004, the bank financed 129 projects for a total of EUR 4.1 billion, of which EUR 1.24 billion was received by Russia. In total for 1991-2008. the bank issued 33 billion euros to the countries of Eastern Europe for 2.2 thousand projects, of which Russia accounted for more than 5.9 billion euros. In 2004, the bank's profit amounted to 297.7 million euros. Equity According to the results of 2008, the bank's investment amounted to 11.8 billion euros.

Bank for International Settlements. International Finance Corporation. International Development Association

The European Bank for Reconstruction and Development (EBRD) was established in 1990 and is based in London. The main goal of the EBRD is to promote the transition to a market economy in countries former USSR, countries of Central and Eastern Europe. The EBRD lends to projects only within certain limits.

EBRD resources are formed by analogy with the IBRD. However, the EBRD's share of paid-up capital is higher (30% compared to 7%). The unpaid shares can be called upon if necessary, but are usually used as a guarantee when attracting borrowed money in the global credit market.

The EBRD specializes in lending to production "including project financing), providing technical assistance for the reconstruction and development of infrastructure (including environmental programs), equity investments, especially in privatized enterprises. The EBRD's primary areas of activity, including in Russia, are financial, banking sectors, energy, telecommunications infrastructure, transport, Agriculture. Much attention is paid to supporting small businesses. Like other international financial institutions, the EBRD provides advisory services in the design of development programs with targeted investments. One of the EBRD's strategic tasks is to promote privatization, denationalization of enterprises, their restructuring and modernization, as well as consultations on these issues.

The European Investment Bank (EIB, Luxembourg) provides loans for a period of 7 to 20 years, and for developing countries - up to 40 years. The goal of the EIB is the development of backward regions of the EU countries, the reconstruction of enterprises, the creation of joint economic facilities, the development of priority sectors.

A special place among international monetary organizations is occupied by the Bank for International Settlements (BIS, Basel, 1930). Essentially, it is a bank of central banks (34 countries, including Russia since 1996). The BIS facilitates their cooperation, accepts their deposits and provides loans.

The IFC was established in 1956. It stimulates the direction of private investment in industry developing countries for the growth of the private sector.

Loans are provided to the most profitable enterprises for up to 15 years (3 to 7 years on average). The specifics of IFC loans is the absence of the requirement for government guarantees, in contrast to the IBRD and MAP, because private capital seeks to avoid state control. In addition, since 1961, the IFC has the right to directly invest in the equity capital of enterprises since 1961.

subsequent resale of shares to private investors. This reflects the World Bank Group's tendency to collaborate rather than compete with private investors.

MAP was established in 1960. Provides preferential interest-free loans for a period of 35-40 years to the least developed countries - members of the IBRD, charges only a commission in size b-l% for coverage administrative expenses. The purpose of these loans is to encourage the export of goods from developed countries to the poorest countries. The specificity of MAP's activities is to coordinate activities with the IBRD and joint lending to projects.

This combines flows of concessional government loans as a form of economic assistance and more expensive private loan capital.