EBRD DISCUSSING RAISING CAPITAL

/PanARMENIAN.Net/
19.05.2009 10:52 GMT+04:00

/PanARMENIAN.Net/ The European Bank for Reconstruction and
Development’s board of governors is willing to discuss raising capital.

The former communist countries in Europe and central Asia that the
London-based EBRD invests in are struggling through the deepest
recession since shaking off communist regimes. The financial crisis
that left banks with more than $2 trillion in losses worldwide has
led to a dearth of credit and investment in the region.

EBRD President Thomas Mirow called on governors to start addressing
the bank’s capital needs as part of talks on its medium-term strategy
for the period between 2011 and 2015. The board should reach a decision
when the bank holds its next annual meeting in Zagreb a year from now,
he said.

"There have been, as I had hoped for, some preliminary debates about
what is the sustainable business volume for this bank, how do we cope
with risks, and what should this mean in terms of a possible capital
increase," Mirow told reporters today.

"In this field, we didn’t have all shareholders on the same line"
with some preferring to stay within the existing capital limits,
he said, adding that "there was no divisive debate."

Quizzed about the capital requirements of the EBRD, Mirow replied
that the bank could invest between 7.0-8.0 billion euros (9.4-10.8
billion dollars) both this year and next year.

The EBRD, which has a capital base of 20 billion euros, will decide
whether to alter its capital levels at the bank’s next annual meeting
in Zagreb, Croatia, on May 14-15, 2010.