The European Bank for Reconstruction and Development (EBRD) is a financial institution founded in 1991 with the primary objective of fostering the transition towards a market-oriented economy in countries in Europe and Central Asia.
The EBRD's dictionary definition could be stated as follows:
The European Bank for Reconstruction and Development (EBRD) is an international financial institution established to promote economic development and transition in countries located in Europe and Central Asia. As a specialized multilateral bank, its primary goal is to advance the transition process from centrally planned to market-oriented economies in its member states. The bank provides funds, expertise, and technical assistance to facilitate the restructuring of state-owned enterprises, promote private sector competitiveness, and support sustainable economic growth.
The EBRD has a strong focus on promoting environmental sustainability, good governance, and the development of competitive and resilient economies. It provides financing and investments to both public and private sector entities, including financial institutions, infrastructure projects, and small and medium-sized enterprises. Additionally, the EBRD engages with governments, civil society organizations, and other stakeholders to foster policy reforms, improve legal frameworks, and enhance business environments.
The bank operates on a commercial basis, applying sound banking principles and aims to achieve profitability in its projects. However, while being profit-oriented, the EBRD operates under a mandate that prioritizes the accomplishment of its developmental goals. The EBRD's equity and loans are complemented by technical assistance and policy dialogue to support institutional capacity-building and promote sustainable economic development in its member countries.
