The European Bank for Reconstruction and Development (EBRD) was established in 1991 to support the countries of Central and Eastern Europe in their transition towards democratic market economies.
The bank works in 29 countries across Central and Eastern Europe, the Caucasus, Central Asia, Turkey and Mongolia. To help countries in the region become open, market economies the EBRD finances banks, industries and businesses.
Recognising the bank's skills and aims, shareholders are in the process of formally agreeing to extend the bank’s work to North Africa and the eastern Mediterranean.
The EBRD is the single largest foreign investor in the region – in 2010 it had a business volume of €9 billion across 368 projects. Each project is tailored to the specific situation of the country, region and sector.
The bank provides direct investments, loan and equity finance, guarantees, leasing facilities and trade finance.
The UK has an 8.4% shareholding in the EBRD – making it the joint second largest shareholder. The UK's multilateral aid review found that the EBRD represented good value for money and was particularly strong on organisational criteria and climate issues. The EBRD is currently active in two countries where DFID has bilateral programmes – Kyrgyzstan and Tajikistan.
Over 2010, the EBRD:
In Tajikistan, the EBRD focuses on promoting small private businesses, developing the banking sector and improving critical infrastructure.
In 2010, the EBRD continued its support to the financial sector in Tajikistan by providing a €4 million multi-currency facility to a commercial bank. This means that the bank can provide more affordable loans to small businesses in the Tajik currency, the somoni.
The new programme allows the EBRD to support private sector development by extending local currency loans to eligible banks, microfinance organisations and private enterprises. Customers at the bank can now access much needed cash to keep their businesses running without taking on exchange rate risks.
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