The EBRD is working urgently to reach out to clients across the regions where it invests to provide immediate support to companies that are suffering from the impact of the coronavirus.
EBRD shareholders have approved a framework that – in a first step – will provide up to €1 billion to clients suffering temporary difficulties. (The proposals were approved on 13 March.)
The resilience framework will last as long as it is needed. How long it lasts depends on demand from clients.
This important initial stage demonstrates solidarity with our most important stakeholders: its existing clients. In this dynamic and uncertain environment, the EBRD is ready to do more.
Speed is of the essence during a time of crisis. Without compromising sound banking or compliance standards, our management is developing a streamlined approach to project approval.
Elements of the framework:
- Expansion of trade finance and where required short term (up to 2 years) finance through financial institutions, notably in support of SMEs;
- Short-term (up to 2 years) working capital facilities for corporates and energy developers;
- For sub sovereign municipal, energy and infrastructure clients, balance sheet restructuring and short-term liquidity support
- The EBRD will take “an enabling view” to restructuring of existing loans adjusted repayment schedules, collateral, interest rates and fee structures;
- And we will exploit our ability to disburse in local currency, including the possible conversion of existing facilities into local currency.
The EBRD is well-placed to support the companies that need its help:
1. Our capital position is strong: stronger than before the global financial crisis of 2008/9. We can continue making sound investments – even in the case of a severe scenario with a prolonged pandemic, contraction and U‐shaped recovery.
2. The EBRD has strong relationships with the governments in the countries where it operates and it will work with the relevant authorities on how the EBRD can best respond to the crisis.
3. It has strong relationships with its clients and will help formulate the response to the crisis
4.The EBRD Resident Office network gives the Bank unrivalled capacity for business continuity, as our local staff originate and monitor our crisis response on the ground.
At all times we are closely following the statements of our major shareholders and coordinating with other multilateral development banks in order to exchange ideas and learn from each other's experiences.