In a recent statement, the European Bank for Reconstruction and Development (EBRD), a UK-based development finance institution, announced that it has signed memorandums of understanding (MoUs) with the African Development Bank (AfDB), a multilateral financial institution based in Tunisia, and the Islamic Development Bank, a development finance institution based in Saudi Arabia, to outline how the institutions would cooperate in the Southern and Eastern Mediterranean region as EBRD extends its operation in the region to support the emerging Arab democracies [1]. The extension of EBRD’s mandate arose from the Deauville Partnership that was launched in May by the Group of Eight (G8), a forum of eight major economies, to support the emerging Arab democracies. The four member countries of the partnership are Egypt, Jordan, Morocco and Tunisia. EBRD has already initiated the “institutional steps” needed to start operations in the region. EBRD currently operates in 29 countries in Eastern Europe, Central Asia, and more recently, in Southern and Eastern Mediterranean region.
By Nisha Koul, Research Associate
About the European Bank for Reconstruction and Development (EBRD): The European Bank for Reconstruction and Development (EBRD) is a development finance institution headquartered in London. The bank began operations in 1991 upon the agreement of 40 countries and is now owned by 61 countries as well as the European Investment Bank and the European Union. It aims to finance operations that are both commercially viable and assist development in 29 countries in Eastern Europe, Central Asia, and more recently in Southern and Eastern Mediterranean region. It does this by providing loans, debt securities, equity investments, guarantees and technical assistance to micro- and small businesses via commercial banks and non-bank microfinance institutions (MFIs). In 2010, EBRD invested in 386 projects with a total value of EUR 22 billion.
About African Development Bank: Established in 1964, the African Development Bank (AfDB) provides loans and grants to governments and private companies in Africa. Owned and funded by member governments, the bank has a mandate to reduce poverty and promote sustainable development. Currently, AfDB shareholders consist of 77 member countries, which include 53 African countries to which it commits a total of approximately USD 3 billion annually. Donald Kaberuka serves as president of AFDB as of April 2011.
About Islamic Development Bank (ISDB): The Islamic Development Bank (ISDB) is a development finance institution that was founded in 1973 in Saudi Arabia. It aims to support economic development and social progress in its 56 member countries and Islamic communities around the world. ISDB participates in equity capital and disburses loans to support projects and enterprises that are deemed compatible with its mission. As of 2009, ISDB has a loan portfolio worth USD 4.9 billion.
Sources and Additional Resources:
[1] EBRD Press Release, “EBRD maps out progress in extending geographic mandate at G8 Marseille talks,” http://www.ebrd.com/pages/news/press/2011/110912c.shtml
MicroCapital.org story, September 23, 2011, “MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD), FMO of the Netherlands, Bank im Bistum Essen eG of Germany Syndicate $8m Loan for Bank Eskhata of Tajikistan For Microfinance, Small and Medium-Sized Enterprises (SMEs),” https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-fmo-of-the-netherlands-bank-im-bistum-essen-eg-of-germany-syndicate-8m-loan-for-bank-eskhata-of-tajikistan-for-microfinan/
MicroCapital.org story, September 21, 2011, “MICROCAPITAL BRIEF: Ahmed El Bardai of Egyptian Microfinance Institution Reefy Predicts Boom in Lending to Small and Medium-Sized Enterprises to Boost National Economy,” https://www.microcapital.org/microcapital-brief-ahmed-el-bardai-of-egyptian-microfinance-institution-reefy-predicts-boom-in-lending-to-small-and-medium-sized-enterprises-to-boost-national-economy/
MicroCapital Universe Profile: European Bank for Reconstruction and Development, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Bank+for+Reconstruction+and+Development+%28EBRD%29
MicroCapital Universe Profile: African Development Bank, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=African+Development+Bank++%28AfDB%29
MicroCapital Universe Profile: Islamic Development Bank, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Islamic+Development+Bank+%28ISDB%29
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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