At its annual meeting in Samarkand, the EBRD Board of Governors recognized the need for additional shareholder support for the bank's work in Ukraine, which has intensified since the full-scale Russian invasion, and estimated it at 3-5 billion euros.
Ukrinform reports this with reference to the EBRD press release.
In a statement, the bank said that a proposal from the Board of Directors on the amount of EBRD support for Ukraine and a potential increase in paid-in capital will be submitted to the Board of Governors for a final decision by the end of 2023.
The Board stated that a EUR 3-5 billion capital increase would enable the necessary investments without the need for systematic donor risk sharing in 2024 and beyond.
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EBRD President Odile Renaud-Basso said that given the scale of the financial challenge of supporting Ukraine, an increase in paid-in capital is the most effective form of support that shareholders can provide. They will work with shareholders to prepare a decision by the end of the year, she added.
If approved, the capital increase will be the third time that the bank's shareholders have agreed to increase its capital base.
The EBRD noted that last year it provided EUR 1.7 billion to Ukraine and in the same year raised another EUR 200 million from partner banks. In total, the bank has committed to provide Ukraine with EUR 3 billion over 2022-2023, for which it has mobilized EUR 1.5 billion from 19 international donors to cover part of the risk.
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The EBRD clarified that the decision of the Board of Governors to support Ukraine was one of the three key decisions taken at the meeting in Samarkand.
As noted, the donors that have already provided support to Ukraine are the United States, Norway, France, the Netherlands, Spain, the EU, Canada, the United Kingdom, Italy, Japan, South Korea, Switzerland, Taipei, China, Germany, Austria, Denmark, Finland, Ireland, and Sweden.