LONDON: The European Bank for Reconstruction and Development said Wednesday it was ready to lend to Egypt, extending the remit it began with 20 years ago to help former communist nations.
EBRD chief Thomas Mirow said in a speech in Oxford, central England, that following the fall of president Hosni Mubarak it could eventually invest up to a billion euros ($1.36 billion) a year in the Egyptian economy.
"Twenty years ago, the EBRD rose to the challenge posed by the collapse of communism. Today in the Middle East, if called upon by our shareholders, we are ready to act again — championing the values that we hold dear," Mirow said.
He said the EBRD had been assessing a request for assistance from the Egyptian government even before the popular uprising that forced Mubarak from power this month.
"Now, that examination is proceeding apace. We will analyze Egypt’s commitment to democracy and the market economy — values promoted by the EBRD’s statutes," he said.
He said an initial report for the bank’s directors should be ready shortly but that a final decision would have to be taken by shareholders.
"Our initial view is that, within the bank’s existing resources, we could invest a billion euros, annually, in to the Egyptian economy," he said.
Asked by AFP when shareholders could decide, an EBRD spokesman said the issue would be discussed at the bank’s annual assembly in Astana, Kazakhstan, in May, but that it was too soon to say when a final decision would be made.
The London-based lender was formed in 1991 to help former communist nations in their transition to market economies.
