The London-based financial institution, set up in 1991 to support the transformation of Central and Eastern European economies and the former Soviet region, said in Thursday that it had provided € 11 billion in loans and investments to 38 farms in its area of activity in 2020. This is the highest annual funding value to date in the bank’s three-decade history. A year earlier, the EBRD provided € 10.09 billion in funding to support its operating region.
Last year, the bank provided funding for 411 specific programs. This was the second year in a row that the number of development programs supported by the bank exceeded four hundred: in 2019, the EBRD financed 452 development investments after 395 the previous year.
The EBRD provided € 1.41 billion in financing to the EU economies in Central Europe and the Baltics last year. The bank stressed in its Thursday report that it was the first international financial institution to put in place emergency measures to mitigate the economic impact of the coronavirus epidemic. The EBRD recalled that as early as March last year, it had put together a € 1 billion extraordinary financial package for companies in its field of activity.
Plans announced at the time included expanding trade finance and disbursing short-term, two-year financing through financial institutions, primarily to small and medium-sized enterprises. The bank also envisaged short-term working capital packages, also lasting up to two years, for other categories of companies as well as energy investment companies, and outlined financial balance sheet restructuring and short-term liquidity support programs for municipal energy and infrastructure companies.
In its Thursday report, the EBRD said it had completed a record 2,090 trade finance transactions in its area of operation last year, also as part of programs to mitigate the effects of the coronavirus epidemic. In addition to last year’s total funding of € 11 billion, the EBRD directly mobilized an additional € 1.2 billion in co-investment.
The bank continues to focus on the private sector:
72 per cent of the funding implemented in 2020 went to private sector companies
– stands in Thursday’s report.
The EBRD said that due to the urgency of mitigating the economic damage caused by the coronavirus epidemic, the share of development funding for green programs in total fell from 46 percent in 2019 to 29 percent last year. However, the goal remains to have a majority of green programs within the EBRD’s funding structure by 2025, the Bank of London emphasized in its presentation on Thursday.
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