Armenia changes opinion on Turkey's becoming EBRD recipient

PanARMENIAN.Net - The Board of Directors of the European Bank of Reconstruction and Development (EBRD) decided that Turkey should become a recipient of EBRD investments, pending final confirmation by the Bank's Board of Governors.



Armenia, which was the only country to vote against during the Tuesday's meeting, changed its opinion the next day, an EBRD representative told a PanARMENIAN.Net reporter.



Turkey has been a shareholder of the EBRD since the Bank was founded in 1991 and made a request in April this year for a change in its EBRD status to become a Country of Operations.



Its application said the EBRD could contribute to the development of entrepreneurial and open-market initiatives in a wide range of sectors across Turkey and such a change would be "immensely beneficial for the Bank as well as for Turkey".



The resident Board of Directors, which represents the Bank's 63 Governors, made its decision after a strategic review of the implications of investment in Turkey. The Governors will make a final decision by the end of October 2008.



EBRD President Thomas Mirow said, "The overwhelming majority in favor of this decision is an impressive sign of unity among the shareholders that will further strengthen the institution."



He added, "Support for the further development of a dynamic market economy will be beneficial not only to Turkey, but also help bolster economies in the EBRD region with strong trade and investment links to Turkey, especially in the Balkans, the Caucasus and Central Asia."



In agreeing to the Turkish government's request, the EBRD would apply to Turkey the unique skill sets and experience it has built up over 17 years in helping to develop market economies.



EBRD investments in Turkey would aim to support the further development of a more open and entrepreneurial economy by promoting growth of small businesses, supporting privatization and bringing private sector financing and know-how to the provision of public services.



A particular emphasis would be placed on investments outside main metropolitan centers. A high priority would be placed on supporting the development of agribusiness and promoting energy efficiency.