China Joins the European Bank for Reconstruction and Development (EBRD)

PRESS RELEASE

China Joins the European Bank for Reconstruction and Development

Jan. 13, 2016 (EIRNS)—European Bank for Reconstruction and Development (EBRD) President Sir Suma Chakrabarti will be visiting Beijing on Jan. 15-16 to complete the formal admission of China as a member of the Bank and also to attend the inauguration of the Beijing-based Asian Infrastructure Investment Bank (AIIB), EBRD news releases said today. Speaking ahead of his visit, Sir Suma said,

"Chinese membership of the EBRD is a win-win-win scenario for China, for the EBRD, and for the countries where the EBRD invests. The EBRD would support Chinese integration into the global economy and be a strong partner for Chinese companies as they invest in the EBRD regions.... EBRD membership would also provide a boost to China’s One Belt, One Road initiative"

The EBRD would benefit from having the world’s second-largest economy as a shareholder and would have better access to Chinese firms that could be partners in the EBRD regions, the news release said. Last month, China was made a member of the EBRD.

The EBRD was founded in 1991, and serves as a finance channel for major infrastructure projects in Europe and elsewhere. The EBRD oversees development projects in 36 countries. Meanwhile, the AIIB is scheduled to start operations at the end of this year. The two banks could join hands to upgrade logistics networks that would boost trade and finance throughout Asia, Europe, the Middle East, and Africa.

Azeri News reported today the EBRD invested a record amount in the Central Asian region, in 2015. Last year’s total investment rose by 75%, to €1.4 billion from €803 million, in 82 different transactions following 71 projects in 2014. This brings the total EBRD financing in Central Asia to just over €10 billion.