Which development bank, founded in 1991, is headquartered in London and supports economies across Europe and Central Asia?
Answer
European Bank for Reconstruction and Development
The European Bank for Reconstruction and Development, founded in 1991, is headquartered in London and supports economies across Europe and Central Asia.
The EBRD was created after the end of the Cold War to help former communist countries move toward market-oriented economies and democratic institutions. Its first president was Jacques de Larosière, a former managing director of the International Monetary Fund.
Unlike a conventional commercial bank, the EBRD finances projects, businesses, and reforms intended to strengthen private enterprise and sustainable economic development. It can provide loans, equity investment, and policy support.
The EBRD is often confused with the European Investment Bank. The EIB is the European Union’s long-term lending institution, while the EBRD has a broader transition and development mandate and includes shareholders from outside Europe.