By Karin Strohecker
LONDON (Reuters) – Investments made by the European Bank for Reconstruction and Development rose by 26% in 2024 to a record 16.6 billion euros ($17.1 billion) thanks to more projects in Ukraine and green financing, the lender said on Thursday.
Over three quarters of the 584 projects financed last year were directed to the private sector, the EBRD said. Meanwhile total mobilisation – the overall amount of investment unlocked from sources other than the bank – amounted to 26.7 billion euros.
“The level of support to Ukraine has increased,” said EBRD President Odile Renaud-Basso.
“Another component is green investment …we’ve been doing a lot of work with a number of countries on strategies to develop renewables, to attract investors in the renewable sector, for example in countries like Uzbekistan or Egypt.”
Turkey remained the biggest investment destination last year, Renaud-Basso said, followed by Ukraine, Egypt, Poland and Uzbekistan.
She said recent Russian attacks on Ukraine’s energy infrastructure – a key focus for the lender – had made the situation on the ground “very tense”.
“It’s very painful and it has taken a huge toll on the economy,” Renaud-Basso said, adding the EBRD had seen huge demand for a programme put in place late last year which helps companies boost their power generation capacity.
Asked about Turkey’s central bank delivering a bumper 250 basis point rate cut in December after inflation fell more-than-expected to 44.38%, Renaud-Basso said policy makers’ work was not yet done.
“You need to keep the course and not to stop in the middle, there is still a long way to go,” she said.
Renaud-Basso added she expected the relationship with Donald Trump’s incoming administration to be a “constructive dialogue” – much like it was under his previous term.
The United States holds a 10% capital share of the EBRD which is owned by 74 countries, the European Union and the European Investment Bank.
EBRD governors – including the U.S. representative – signed off on a 4 billion euro capital increase for the lender in late 2023, though many governments still need to subscribe to it.
“The EBRD capital increase decided by our governors presents a strong business case for our shareholders, especially with its focus on supporting Ukraine’s real economy, the private sector and its reconstruction,” Renaud-Basso said.
($1 = 0.9699 euros)
(Reporting by Karin Strohecker, editing by Sinead Cruise and Christina Fincher)
