LONDON, Dec 17 (Reuters) - The European Bank for Reconstruction and Development said all of its largest shareholders, including the United States, had either paid for its 4 billion euro ($4.7 billion)
EBRD Gains Major Capital Increase with US Approval
LONDON, Dec 17 (Reuters) - The European Bank for Reconstruction and Development said all of its largest shareholders, including the United States, had either paid for its 4 billion euro ($4.7 billion) capital increase or pledged to do so.
"Our largest shareholders have now either subscribed or have indicated their intention to subscribe and in total we expect more than 90% of the general capital increase to be taken up," an EBRD spokesperson told Reuters.
The lender's board approved the increase in late 2023 and in May extended the subscription deadline to end-2025. At that time, more than half of shareholders had paid in or were in the process of doing so, but the U.S. – its biggest shareholder – had yet to commit.
Early this year, President Donald Trump ordered a review of U.S. participation in international organisations, raising doubts over Washington's financial support as the former top donor shifted away from development finance.
Last month, Trump signed an appropriations bill allowing the Treasury to subscribe for up to 40,000 additional EBRD shares and authorising $437.5 million for the purpose. It was not immediately clear whether the payment had been made.
The increase will lift the EBRD's capital base to 34 billion euros, enabling it to double Ukraine investments once reconstruction begins.
The bank recently expanded its membership and announced its first investments in Sub-Saharan Africa - a 30-million-euro loan to strengthen Benin's national grid - and in Iraq, a $100 million trade finance facility.
The EBRD has 77 national shareholders plus the European Union and the European Investment Bank, and has invested more than 190 billion euros since its 1991 founding.
($1 = 0.8543 euros)
(Reporting by Libby George. Editing by Karin Strohecker and Mark Potter)
