In March 2009, the largest multilateral investors and lenders in Central and Eastern Europe—the EBRD, the EIB Group, and the World Bank Group including IFC—pledged to provide up to €24.5 billion to support the banking sectors in the region and to fund lending to businesses hit by the global economic crisis.
This initiative complements national crisis responses and will deploy rapid, large-scale and coordinated financial assistance from the international financial institutions to support lending to the real economy through private banking groups, in particular to small and midsize enterprises. The financial support will include equity and debt finance, credit lines, and political risk insurance.
Under the two-year plan, the World Bank Group will provide support of about €7.5 billion:
- IFC, through its crisis response initiatives in sectors including banking, infrastructure, and trade as well as through its traditional investment and advisory services, is expected to contribute up to €2 billion
- IBRD intends to increase lending in Europe and Central Asia up to €16 billion in 2009-10 out of which up to €3.5 billion is envisaged for addressing banking sector issues in emerging Europe
- MIGA will provide political risk insurance capacity of up to €2 billion for bank lending, subject to Board approval
Last Updated: 14 Oct 2009 |
