The European Bank for Reconstruction and Development (EBRD) has approved a €4 billion capital increase that will enable it to double lending to Ukraine amid Russia’s invasion, Financial Times reports. EBRD shareholders backed the boost, signalling continued support for Ukraine’s economic revival plans.
EBRD is going to announce on 19 December that the capital increase will allow the bank to scale annual lending to Ukraine to €3 billion once reconstruction efforts are entirely underway. Ukraine is set to receive a fifth of the bank’s total lending portfolio. EBRD President Odile Renaud-Basso told FT the bank focuses on sustaining Ukraine’s economy during this “critical time.”
Thus far, the EBRD has provided around €3.7 billion in loans to Ukraine since Russia’s full-scale invasion began last February. Much of the financing has gone towards propping up critical infrastructure like the energy grid and building export-enabling rail infrastructure.
With the increase in capital, the EBRD will continue supporting Ukraine’s economy by financing critical infrastructure and exports throughout the duration of the conflict. This backing is intended to facilitate economic growth and make Ukraine less dependent on foreign aid, which was a “weakness,” according to Renaud-Basso.
Renaud-Basso stressed that maintaining international assistance for Ukraine is essential so that it can keep meeting basic governance needs during this period.
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