ANKARA
The European Bank for Reconstruction and Development said that it will begin making investments in Greece, the London-based bank said in as statement on Tuesday.
“The European Bank for Reconstruction and Development will start investing in Greece on a temporary basis in response to a request from the Greek authorities for the Bank to support reforms and a return to economic growth,” the statement said.
The EBRD was created to invest in developing countries, so the move to invest in developed Greece is a new venture for the bank.
The previous Greek government had put in a request for aid in 2014. "The government of Greece requested that the country be granted EBRD recipient country status, in a letter dated 25 November 2014 which said that EBRD engagement would provide value-added in tackling the consequences of the financial and economic crisis and addressing the structural challenges in the Greek economy," the statement said.
The request was reconfirmed by the new government on Feb. 2, 2015. "Following the Governors’ approval, the EBRD will now engage with the Greek authorities to prepare a country strategy for Greece which will provide the framework for its engagement and identify priorities," the statement said.
The Bank’s investments – backed by technical assistance and policy dialogue – are intended to strengthen progress in the reform of Greece’s economy and contribute to its recovery.
“The organization will deploy its expertise in attracting and encouraging foreign and domestic investment, strengthening the role of the private sector and deepening regional integration,” the statement said.
Greece is a founding member of the EBRD and to date Greek companies and banks have invested €2.3 billion in joint investments with the Bank in the EBRD’s recipient countries, with a focus on south-eastern Europe.
The EBRD intends to open an office in Athens as part of its engagement with Greece.
