UNIT 2. European Bank for Reconstruction and Development (EBRD)
In this article the background and the main purpose of European Bank for Reconstruction and Development (EBRD) in Central Asia was analyzed with the implemented examples. The European Bank for Reconstruction and Development was created to help countries to establish private sectors. In order to do this they primarily offer loans to businesses in the countries that they are trying to help. In most cases they do not grant loans to the government since the goal is to get the government out of the economy of the country. One of the goals of the European Bank for Reconstruction and Development is to get more private investment in the countries that they are trying to help. Obviously this is not going to happen if the bank is providing most of the funding for the projects. Therefore the bank normally only invests when there are partners for it to work with. In general they will not the majority investor but will require their partner to put up the majority of the money. This has been fairly successful at getting investors to put their money into the countries. In Central Asia the EBRD implemented many projects to supporting private sector development, key to creating jobs and alleviating poverty. In this case Kazakhstan was the largest recipient between countries. Also the EBRD has a programme to get rising on the textile sector and promotes import and export trade. The Bank will work with governments in Central Asia to increase private capital flows, set up market economies, focusing on lessening trade barriers and diversification to reduce dependence on oil and gas. In Conclusion, The EBRD supports projects from central Europe to central Asia. In all its operations the EBRD follows the highest standards of corporate governance and sustainable development.
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