"The European Bank for Reconstruction and Development was established in 1991 when communism was crumbling in central and eastern Europe and ex-soviet countries needed support to nurture a new private sector in a democratic environment. Today the EBRD uses the tools of investment to help build market economies and democracies in countries from central Europe to central Asia.

The EBRD is the largest single investor in the region and mobilises significant foreign direct investment beyond its own financing. It is owned by 61 countries and two intergovernmental institutions. But despite its public sector shareholders, it invests mainly in private enterprises, usually together with commercial partners.

It provides project financing for banks, industries and businesses, both new ventures and investments in existing companies. It also works with publicly owned companies, to support privatisation, restructuring state-owned firms and improvement of municipal services. The Bank uses its close relationship with governments in the region to promote policies that will bolster the business environment.

The mandate of the EBRD stipulates that it must only work in countries that are committed to democratic principles. Respect for the environment is part of the strong corporate governance attached to all EBRD investments.

Every EBRD investment must

• Help move a country closer to a full market economy: the transition impact
• Take risk that supports private investors and does not crowd them out
• Apply sound banking principles

Through its investments, the EBRD promotes

• Structural and sectoral reforms
• Competition, privatisation and entrepreneurship
• Stronger financial institutions and legal systems
• Infrastructure development needed to support the private sector
• Adoption of strong corporate governance, including environmental sensitivity

Functioning as a catalyst of change, the EBRD

• Promotes co-financing and foreign direct investment
• Mobilises domestic capital
• Provides technical assistance"

Source: EBRD-Website, as accessed in May 2007