Brussels: Europe and the Arabs
Today, the Council of the European Union adopted a decision to increase the European Union’s shares in the capital of the European Bank for Reconstruction and Development (EBRD). According to what was stated in a statement distributed today, Friday, on the sidelines of the meetings of the economic and economic ministers of the European Union countries.
According to Alba, this capital increase should ensure the bank’s support for strengthening resilience and reconstruction in Ukraine after 2023 and continued support in all the countries in which it operates.
Alba explained, “The European Union will subscribe to an additional 12,102 shares at a value of 10,000 euros each before July 30, 2025. By that time, the EBRD Board of Directors may postpone the subscription date to December 31, 2025 at the latest. The subscription will be paid in five annual installments.” equal.
The decision will expand the geographical scope of the EBRD's operations to include sub-Saharan Africa and Iraq in a limited and increasing manner.
In addition, the decision will remove legal capital restrictions on normal operations in order to mandate the EBRD Board of Directors to establish and maintain any appropriate limits in relation to capital adequacy metrics.
The decision will enter into force on the third day after its publication in the Official Journal of the European Union.
On 15 December 2023, the Board of Governors of the EBRD decided to increase the authorized capital of the EBRD by €4 billion in order to maintain sufficient capital to maintain a reasonable level of activity in the countries where the EBRD operates. Within legal limits.
The authorized capital of the EBRD has increased by 400,000 paid-up shares, and EBRD members can subscribe to a number of full shares, in proportion to their existing shares.
Prior to this capital increase, EU held 90,044 shares, each with a nominal value of €10,000.
On 22 January 2024, the Commission submitted to the Council and the European Parliament a proposal for the European Union to subscribe for an additional 12,102 shares worth €10,000 in the capital of the European Bank for Reconstruction and Development.
The Commission asked the European Parliament and the Council to implement the urgent procedure for this file. The European Parliament adopted the text without amending the substance of the proposal on 14 March 2024, and the Council adopted the text itself, thus closing the adoption procedure.