• 20/06/2024 15:03

The EU allocates 121 million euros for additional capitalization of the EBRD to increase assistance to Ukraine

On April 12, the Council of the European Union at the level of finance ministers decided to increase the EU share in the European Bank for Reconstruction and Development: the EU will subscribe for 12,102 thousand additional shares of 10 thousand euros each until July 30, 2025. This is stated in the press release of the EU Council, writes Interfax-Ukraine.

The EU allocates 121 million euros for additional capitalization of the EBRD to increase assistance to Ukraine

► Subscribe to Telegram channel “Ministry of Finance”: main financial news

Навигация

What is known

“This capital increase should ensure the Bank’s support for the recovery and reconstruction of Ukraine after 2023 and subsequent support in all countries of its operation,” the press release notes.

It is specified that the subscription will be paid in five equal annual payments , and the decision will expand the geographical scope of the EBRD's operations to sub-Saharan Africa and Iraq on a limited and gradual basis.

“Good news! The Ecofin Board approved EU participation in the EBRD's capital increase for continued support to Ukraine. The EU-EBRD partnership has never been so strong,” Executive Vice President of the European Commission Valdis Dombrovskis commented on this decision on the social network X, thanking legislators for their quick work.

Remember

EBRD Governing Board at the end of 2023, decided to increase the authorized capital of the EBRD by 4 billion euros, or 13%, to 34 billion euros to finance the bank’s projects in Ukraine and other countries. For this purpose, an additional 400 thousand shares will be issued, and EBRD members can subscribe to them in proportion to their existing shareholding. Prior to this increase in EU capital, the EU owned 90,044 thousand shares.

The EBRD noted that the additional capital will allow the bank to continue to ensure the level of annual investment in Ukraine in amounting to about 1.5 billion euros during the war period, fully supported by its own balance sheet, and also have the means to increase its support to 3 billion euros annually after the start of reconstruction. The EBRD indicates that since February 2022 it has allocated more than 4 billion euros to Ukraine.

minfin.com.ua

Leave a Reply

Your email address will not be published. Required fields are marked *