The European Bank for Reconstruction and Development (EBRD) was established in 1991 with the sole aim of promoting economic growth and transition in Europe`s emerging economies. The EBRD`s mandate was to help these countries transition to market-oriented economies, foster economic development, and promote sustainable and inclusive growth.
The agreement establishing the EBRD was signed on May 29, 1990, in Paris, France, and came into effect on April 20, 1991. The agreement was signed by the founding members of the bank, which included 40 countries and the European Community. Today, the EBRD has 69 shareholders that include 68 countries and the European Union.
The agreement establishes the bank as an international organization, with an independent legal personality, and grants it the legal capacity to contract, acquire, and dispose of movable and immovable property. It also gives the bank the authority to borrow and lend funds, issue securities, and invest in capital markets.
The EBRD agreement outlines the bank`s governance structure, which includes a board of governors, a board of directors, and a president. The board of governors is responsible for the bank`s overall direction and strategy, while the board of directors oversees day-to-day operations and approves major investments.
Additionally, the agreement establishes the bank`s mission, which is to promote sustainable and inclusive growth in the economies it operates in. The EBRD does this by offering financing, technical assistance, and policy advice to support the private sector in the countries where it operates.
One of the unique features of the EBRD is its mandate to work in non-EU countries, specifically in the countries of Central and Eastern Europe, the Caucasus, and Central Asia. The bank also works in the southern and eastern Mediterranean region and aims to promote economic integration and cooperation in these regions.
In conclusion, the agreement establishing the EBRD is a crucial document that outlines the bank`s mission, governance structure, and its mandate to promote sustainable and inclusive growth in emerging economies. The bank has played a vital role in promoting economic development and transition in the regions it operates in, and it remains a vital partner for governments, businesses, and communities in these regions.