EBRD meeting to focus on financial crisis impact

PanARMENIAN.Net - Ministers, senior officials and business leaders from more than 60 countries are meeting today in London to discuss the impact of the financial crisis in central and eastern Europe.



The 18th Annual Meeting of the European Bank of Reconstruction and Development will review the response to the crisis and the Bank's increased investments in the financial sector as well as enterprises in the region.

 

The EBRD's shareholders will assess the impact of the crisis on the region and determine how the EBRD can play an effective role, supporting the recovery both now and in the longer term.

 

The meeting will also bring together international policy makers and economists to discuss the future international financial architecture.

 

"During the two-day meeting (15-16 May) the Bank is expected to sign a number of projects, sealing further investments in the financial, enterprise and infrastructure sector. In the first quarter of this year, investments rose 64 percent to €1.1 billion compared to last year," EBRD reported.

 

Representatives of the leading banking groups active in eastern Europe will attend the meetings. The EBRD is working closely together with these banks and with other International Financial Institutions to ensure that funds keep flowing to the real economies of the region.

 

Most recently, the EBRD joined forces with the UniCredit group, announcing on May 7 plans to provide over €430 million mainly into small businesses in eight eastern European countries. The Bank has also invested in locally owned banks in the region, including the acquisition of a 25 percent plus one share stake in Latvia's Parex Banka and a €100 million loan to one of Romania's leading local SME banks, Banca Transilvania.

 

The Bank's response has included a joint initiative with the World Bank Group and European Investment Bank to invest €24.5 billion across the region to meet the financial needs of banking groups, securing their continued engagement and maintaining their capacity to lend to small- and medium-sized enterprise.

 

The EBRD is also looking beyond the immediate demands of the crisis to ensure that economies in the region continue to prepare for the longer-term future.

 

During the meeting the EBRD will unveil plans to extend its investments in energy efficiency and renewable energy projects. The EBRD's Sustainable Energy Initiative launched in 2006 has already led to investments of €14 billion over the last three years, helping to reduce energy intensity and to make economies more competitive.

 

As usual the EBRD is staging a Business Forum alongside the Annual Meeting, providing a platform this year for senior politicians and policy-makers, business executives and economic experts to draw lessons from the crisis and map out solutions.

 

Under the heading "Investing for the Future: Opportunities in a Tougher Climate", the Forum is focused firmly on the region, analyzing the changing landscape of the financial sector, over-dependence on commodities, the importance of energy efficiency and the key role of infrastructure investment as an engine of economic growth, The Financial reported.