TODAY.AZ / Business

EBRD plans major shift in regional activities

23 May 2006 [09:20] - TODAY.AZ
European Bank for Reconstruction and Development (EBRD) had its annual meeting and business-forum in London on May, 21-22.

EBRD Residential Office in Baku told APA that Azerbaijan was represented by delegation with Heydar Babayev, Economic Development Minister, at the head in the event.

Investment climate in the region-discussed event's participators were member countries' governors and NGO representatives, investors and bank employees. The EBRD strategic course was endorsed for next years and investment opportunities in regions were envisaged. Besides, the new strategy to shift the focus of its investment to Russia, South Europe, the Caucasus and Central Asia was endorsed by EBRD.

According to the new strategy, resources are re-allocated from Central and Easter Europe to those countries. It reflects the historic and economic achievements of the countries of Central and Eastern Europe in their political transformation.

The strategy recognises these the eight countries which have joined the EU will have graduated from the EBRD by the end of 2010. The strategy should stimulate innovation and overall investment strategies for a new business model which sets targets for capital, mortgage, securities market and national currencies financing. Net profits of $1,5 million make it possible for the Bank to accept higher financial risk.

According to EBRD President Jean Lemierre, with constant innovations and different investment approaches required for the countries outside the EU-8, the Bank will look very different in five years’ time from how it looks now.

In addition, this five-year strategy was unanimously approved by the Board of Directors on 10 May 2006.

EBRD credits for Azerbaijan totals $770 million. $270 million or 45% of this amount shares with public sector and $500 million or 55% with private sector.


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