European Bank for Reconstruction and Development (EBRD)
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Definition: European Bank for Reconstruction and Development (EBRD)
The European Bank for Reconstruction and Development (EBRD) is a development bank (formed by a group of countries that provides financing and professional advising for the purpose of development) which provides capital for business development.
The major shareholder of this institute is United States, and others are Europe and the countries from all the 5 continents.
EBRD was founded in 1991 and its Headquarter is in London. Though EBRD is a public sector shareholder but it invests in private enterprises, together with commercial partners.
EBRD was formed with a basis for providing the support for the process of establishing the private sectors of their member countries, especially of Eastern Bloc.
EBRD offers "project financing" for banks, industries and businesses, for new ventures or existing companies. It works in favor of democratic principles and focuses on sustainable development and environmental protection.
Terms and Conditions for Financing:
EBRD finances loan and equity finance, guarantees, leasing facilities, trade finance, and professional development.
For this, the company or the project must be located in an EBRD country of operations, benefit the local economy and help develop the private sector and satisfy banking and environmental standards.