By Decision, the Council of the European Communities approves, on behalf of the European Economic Community, the Agreement establishing the European Bank for Reconstruction and Development (EBRD).
The EBRD was established in 1991 and is headquartered in London. It was created to provide support for the transition of Central and Eastern European countries to a market economy after the end of the Cold War. Its geographical scope was later expanded to the countries of the former Soviet Union and then to the countries of the southern and eastern Mediterranean. It currently operates in more than 30 countries.
The EBRD’s shareholders include 65 countries, as well as the European Union and the European Investment Bank.
The EBRD’s political mandate is to assist only those countries that have committed to implementing the principles of multiparty democracy and pluralism.
Although the EBRD has provided much of its funding to private sector businesses, it has also been very active in supporting financial institutions. Support for the latter was provided both through direct investments and through credits to them for lending to businesses. Another important focus of EBRD funding has been the transport, energy, and water and sewerage infrastructure sectors.
