EBRD increases its capital base for Ukraine for third time in history

This is stated in the EBRD's report.

“A proposal from the Board of Directors on the scope of EBRD support for Ukraine, and on a potential paid-in capital increase, will be submitted to governors for a final decision by the end of 2023,” the report says. 

The bank's shareholders are 71 countries, as well as the EU and the European Investment Bank. Last year, the EBRD lent EUR 1.7 billion to Ukraine and raised another EUR 200 million from partner banks. In total, the bank has committed to provide EUR 3 billion to the country in 2022-2023, mobilizing EUR 1.5 billion from 19 international donors.

The Board of Governors reaffirmed that the bank, in partnership with others, should play an important role in international efforts to support Ukraine's real economy both during the war and the reconstruction.

In wartime, the financial institution focuses on maintaining energy and food security, restoring critical infrastructure at the national and municipal levels, providing trade finance, and supporting the private sector.

“An EUR 3-5 billion paid-in capital increase would enable investment of the nature and scale outlined without the need for systematic donor risk-sharing in 2024 and beyond,” the report says. 

If approved, the capital increase will be the third time that the bank's shareholders have agreed to increase its capital base.

• As a reminder, the EU's top diplomat, Josep Borrell, is proposing to increase the EU Peace Facility, which finances the provision of weapons to Ukraine.

• Also in the fall, the US plans to provide Ukraine with a USD 60 billion aid package.