EBRD plans €4 billion capital increase to support Ukraine
2023.11.16 12:56
LONDON – The European Bank for Reconstruction and Development (EBRD) has initiated a formal process for a significant capital increase to support sustained investment in Ukraine during and after the current conflict. This move comes as the bank seeks to reinforce its financial capacity with a €4 billion boost to its €30 billion shareholding.
The EBRD’s Board set this process in motion on Tuesday, with expectations for the capital increase to be effective by the end of 2024. The bank’s governors will make a decision on this proposal by the end of this year. Once approved, payments are slated to begin in early 2025. This marks the third capital increase for the EBRD, following previous augmentations in 1996 and 2010.
The additional funds are earmarked to ensure that Ukraine can count on an annual commitment of €1.5 billion from the bank, with intentions to increase this support to €3 billion in the future. This strategic financial reinforcement underscores the EBRD’s ongoing commitment to Ukraine during a time of unprecedented challenges due to wartime conditions.
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