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European Bank for Reconstruction and Development

The European Bank for Reconstruction and Development (EBRD) was set up in 1991 and has its headquarters in London.

It was set up to provide support for the transition to a market economy of countries in central and eastern Europe following the end of the Cold War. Its geographical scope was later extended to the countries of the former Soviet Union and then to those in the southern and eastern Mediterranean. It is currently active 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 are committed to applying the principles of multiparty democracy and pluralism.

While much of the EBRD’s financing has been to businesses in the private sector, it has also been very active in supporting financial institutions. Support for the latter has been both through direct investment and through credit to them for on-lending to businesses. A further important focus of EBRD funding has been on transport, energy, water and sanitation infrastructure.