The European Bank for Reconstruction and Development (EBRD) is expected to invest 1.5 billion euros (CZK 35.5 billion) in Ukraine next year, Reuters reported, citing a senior source from the bank. The bank has earmarked a total of three billion euros for 2022 and 2023 to support Ukraine’s infrastructure and lending during the conflict with Russia.
Increasing the capital base
Earlier this month, the EBRD and its shareholders agreed to increase the bank’s capital base to partly support investment in Ukraine. It was only the third such step the bank has taken since its founding in 1991. The total capital increase is expected to be between three and five billion euros, with the final amount to be decided by the end of the year.
Ukraine’s economy shrank by 29.1% last year due to the impact of the Russian military invasion. This is the most significant drop in gross domestic product (GDP) since the collapse of the Soviet Union in 1991 after the declaration of independence. The government expects that the economy could show growth of 1 percent this year due to improvements in transport, retail and construction.
Established to help post-communist countries
The EBRD was established in 1991 to help the former communist countries of Central and Eastern Europe and the Soviet Union transition to market economies. It now operates in nearly four dozen countries in Europe, Asia and Africa. In spring 2021, at the request of the Czech government, the bank decided to resume investments in the Czech Republic after a 13-year hiatus.
Source Czech Press Office
