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The board of directors of the European Bank for Reconstruction and Development (EBRD) has called for a paid-in capital increase of €4 billion that would let the bank, already the largest lender to Ukraine, double its investment in the country.
"The additional capital would enable the EBRD to continue providing a sustained level of investment during wartime of €1.5 billion a year, and to increase its annual investment in Ukraine to €3 billion in the future," the bank said in a statement on its website.
The capital increase, which would be the third in the lender's history, would take effect at the end of 2024, with the first payments in early 2025. The board recommendation comes just after the EBRD reached its target in October of deploying €3 billion in financing for Ukraine in the 2022-23 period.
"Today’s decision is in line with the governors’ recognition that support for Ukraine should be the Bank’s highest priority, now and in the future, following Russia's full-scale invasion of the country, whilst also ensuring that the EBRD can continue to pursue its strategic priorities across all its economies of investment," the lender said in a statement.
If accepted, the board's recommendation would increase the shareholding of the EBRD to €34 billion from the current €30 billion.
"An increase in capital of this size will strengthen the EBRD’s balance sheet and ensure that the Bank is able to undertake increased investment in Ukraine and continue fully supporting the other economies where it invests in tackling their transition challenges," the bank said.
"This support is particularly important in the context of the increased need to face geopolitical tensions and their economic consequences, and the climate crisis and the long-term challenges it poses."
