THE EBRD: ORIGINS AND MANDATE
The European Bank for Reconstruction and Development (EBRD) is an International Financial Institution (IFI), a Multilateral Development Bank (MDB) established in 1991 to “foster the transition towards open market-oriented economies and to promote private and entrepreneurial initiative in the countries of Central and Eastern Europe committed to the principles of multiparty democracy, pluralism and market economics” (Article 1 of the Statute).
Headquartered in London and with offices in various countries of operations, the EBRD has played and continues to play a key role in supporting the economic and social transformation of its countries of operations, which have increased in number and geographical scope. Since its inception, the Bank has invested over €220 billion in more than 7,800 projects.
The EBRD currently has 79 shareholders, including the European Union and the European Investment Bank. Ghana’s membership is currently being processes. The Bank operates in 42 countries. Since July 2014, the EBRD has suspended any new investments in Russia. Following the invasion of Ukraine, as of April 2022, the EBRD suspended all access by Russia to its resources and closed its offices in the country. In the same month, the Bank suspended Belarus’s access to its resources for the same reasons and closed its offices in Minsk.
To fulfil its mandate, the EBRD operates on a project-based and demand-driven model, also in collaboration with other MDBs. It provides financing for investments and projects, extending loans and guarantees, and taking equity stakes.
The EBRD operates according to commercial principles: loans are extended at market-based interest rates (the Bank enjoys a triple-A rating from major credit rating agencies), and one of the three guiding principles is sound banking. The other two are support for transition (from state-run to market economies) and additionality (the Bank’s intervention should not crowd out private sector activity). The Bank assesses transition impact based on six transition qualities, which are regularly updated to reflect broad macroeconomic and political changes: competitiveness, good governance, inclusion, environmental sustainability, resilience, and integration (in line with the UN’s 2015 Sustainable Development Goals and the 2030 Agenda).
EBRD operations are also supported by grant-based instruments that enhance their effectiveness. There are around 50 current donors (both bilateral and multilateral – including governments, other IFIs, and private partners). The EBRD also relies on its own Shareholder Special Fund, an annual allocation drawn from the Bank’s net income. Other tools include capex grants, concessional lending, and technical assistance programmes. The Bank increasingly uses guarantee mechanisms and continuously innovates in terms of financial instruments and the mobilisation of private investment (e.g. syndicated agreements).
The Bank’s support for transition is conditional on the existence of democratic regimes and political pluralism in the countries of operations (Art. 1). Adherence to these principles is an integral part of EBRD activities.
The EBRD Statute also mandates the priority of private sector operations, even when working with public actors, as long as the goal is to crowd-in private finance – a unique feature among MDBs. Within a few years, the EBRD also became a leader in green finance (over 40% of its new financing is classified as “green”; the 2026–2030 Strategic Plan targets 50%) and in local currency lending, which enhances borrower resilience.
Alongside investment operations, the EBRD engages in policy dialogue and capacity building, often through technical assistance funded by grants. The Bank also heavily relies on local knowledge and experts, with 55 regional offices.
Over time, the EBRD has evolved into a multi-regional development bank, maintaining a European core but expanding across three continents with a globally diverse shareholder base. Its area of operation expanded from Central and Eastern Europe and the Baltic states to the Commonwealth of Independent States and Central Asia. Following the so-called Arab Spring and the G8’s political backing – led by Italy – at the Deauville Summit (May 2011), the Bank broadened its geographical mandate to include the Southern and Eastern Mediterranean (SEMED). The most recent expansion, adopted in 2023, incrementally extended the Bank’s activities to Sub-Saharan Africa and Iraq.
Also in 2023, EBRD shareholders approved a €4 billion capital increase (from €30 to €34 billion), mainly to continue supporting Ukraine following the Russian aggression. Since the outbreak of the war in February 2022, the EBRD has invested over €10,5 billion in Ukraine.
The Annual Meeting — the annual meeting of the Bank’s Governors, which convenes to approve the budget, financial statements and key decisions concerning the Bank’s operations — was held in Riga in June 2026. It provided an opportunity for an open and comprehensive exchange of views on the current state and future prospects of the Bank’s activities, in light of the ongoing conflict in Ukraine and increasing global geopolitical volatility, including the Hormuz Crisis, with evident repercussions for the countries of operation.
The next Annual Meeting will take place in Sharm El-Sheikh, Egypt, from 23 to 25 May 2027.
ITALY’S ROLE
Italy is a founding member of the EBRD. In addition to being a significant shareholder – currently holding an 8.64% stake (Italy ranks among the largest shareholders alongside) – Italy is also an important donor, having contributed over €167 million since the Bank’s foundation.
Italy supports the EBRD through Technical Cooperation Funds Programme (TCFP), specifically the Italian Technical Cooperation Fund (for technical assistance) and the Italian Investment Cooperation Fund (primarily for guarantees), both managed by the Ministry of Economy and Finance. Italy also contributes to the Enterprise Expansion Fund (ENEF) and to various multi-donor funds, including the European Western Balkans Joint Fund, the Ukraine Stabilisation and Sustainable Growth Multi-Donor Account, the Small Business Impact Fund (SBIF), and the SEMED Multi-Donor Account.
Italy is the sole contributor to the Central European Initiative (CEI) Fund, established in 1992, with contributions totalling €61 million to date. The CEI Fund supports transition countries in their EU integration processes, financing technical cooperation projects in transport, energy efficiency and climate change, enterprise development and political dialogue. It also operates a Know-How Exchange Programme, funding capacity building initiatives.
Italian banks are involved in the Trade Facilitation Programme, under which the EBRD guarantees payment for trade finance instruments issued by banks in its countries of operations.
Italy also plays a major role in supporting Ukraine, with a €10 million contribution via the Italian Agency for Development Cooperation to the Crisis Response Special Fund, and a €200 million co-financed project with the EBRD in favour of Ukrhydroenergo. The project will finance the purchase of critical equipment for two hydroelectric power plants (Dnipro HPP and Seredniodnipro HPP) and cover the company’s liquidity needs. During the Ukraine Recovery Conference held in Rome in July 2025, Italy announced a further €1.5 million for the Ukraine FIRST Cooperation Fund and €10 million to support future EBRD programmes in the agrifood sector, aimed at modernising Ukraine’s food processing industry and facilitating its integration into global supply chains.
Since 2018, Italian entities won around 500 EBRD’s procurement and consultancy contracts, for a total value of over €640 million.
Since July 2024, the Italian Office at the EBRD has been hosting an Italian Trade Agency’s “EBRD Desk” to provide companies with guidance and support in their interactions with the Bank, including with regard to its procurement procedures, and to encourage the development of joint initiatives. The Desk supports companies throughout the entire cycle of engagement with the financial institution, from the preliminary stages of project preparation through to post-tender support. The Desk can be contacted at its dedicated email address: desk-ebrd@ice.it.
ITALIAN STAFF
As of 31 March 2026, out of a total of 3,489 employees, 123 EBRD staff members were Italian.
The Executive Director for Italy is Mr. Marco Zanni. The Alternate Executive Director for Italy is Mr. Umberto Bernardo
Contacts:
5 Bank Street, E14 4BG, London
Tel.: +44 (20) 73387013