Brussels, 27/02/2009 (Agence Europe) - The calls for support for the banking sector in the countries of Central and Eastern Europe have not fallen on deaf ears. On Friday 27 February, the European Investment Bank (EIB), the European Bank for Reconstruction and Development (EBRD) and the World Bank jointly undertook to provide up to €24.5 billion for the banks and businesses of the region. The initiative has been welcomed by the European Commission which has stressed the importance of the Community support for member states in the region (structural funds, balance of payments support) and of the European recovery plan. “Mitigating the effects and ultimately solving the crisis is a shared responsibility of all the stakeholders involved,” said a Commission spokesman.
“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 medium-sized enterprises,” said the three institutions in a joint press release. Under the plan: - the EBRD will provide up to €6 billion for the financial sector in the form of equity and debt finance; - the EIB will provide some €11 billion in SME lending facilities (€5.7 billion is already available for rapid disbursement, with an additional €2.8 billion set for approval by the end of April and further tranches expected to follow); - the World Bank will provide support of around €7.5 billion through various instruments.
“We are acting because we have a special responsibility for the region and because it makes economic sense,” said EBRD President Thomas Morrow, adding: “For many years the growing integration of Europe has been a source of prosperity and mutual benefit and we must not allow this process to be reversed”. In their press release, the three institutions welcome the support already given to some countries by the International Monetary Fund (IMF) and EU programmes, which have had a clear stabilising impact and have helped raise confidence. Coordinated action among the three international financial institutions, the IMF, bank groups, European governments and the EU institutions would help the region, the three say in their press release. (A.B./transl.rt)