European Bank for Reconstruction and Development in Europe
Description of European Bank for Reconstruction and Development (EBRD)
The Concise Encyclopedia of the European Union describes european bank for reconstruction and development (ebrd) in the following terms:  The EBRD was set up in 1991 with a callable capital of 10 billion ECUs (now euros), mandated to assist the transition to free markets of the former communist countries of Central and Eastern Europe (see more in this European encyclopedia). The aim was to prove the EU’s independence from the USA’s financial muscle and expertise, but doubt soon turned to embarrassment as President François Mitterrand’s friend and adviser Jacques Attali, the bank’s first president, spent over £200 million on marble, furnishings and French chefs at his London headquarters. The next president, Jacques de Larosière, brought discipline to expenses and lending during his five year tenure from 1993 to 1997, establishing the bank as a serious institution and doubling its authorised capital to 620 billion. Nevertheless, its meagre profits have repeatedly been consumed by loan loss provisions, the latest setback being the Russian crisis of 1998.
The bank has 60 shareholders, just over half its capital being owned by the member states and institutions of the Eu (see more in this European encyclopedia). It is co-operating with the Communityand the World Bank to step up financing in Central European countries that have been accepted as candidates for EU membership. Some 80% of its financing is in debt form and 20% in equity form, its total commitments being limited to its paid and unpaid capital.
European Bank for Reconstruction and Development and the European Union
Notas y References
- Based on the book “A Concise Encyclopedia of the European Union from Aachen to Zollverein”, by Rodney Leach (Profile Books; London)