India-EBRD Current Affairs
India was formally inducted as 69th shareholder of European Bank for Reconstruction and Development (EBRD). This comes after entire membership process completed recently and after EBRD’s board of governors, which represents all existing shareholders voted unanimously in favour of India’s application in March 2018. India had applied for EBRD membership in December 2017.
India being shareholder, will only take shareholding in EBRD and will not be recipient of EBRD financing. But it may benefit India indirectly through EBRD projects or if Indian companies invest alongside the bank. It will pave way for more joint investment with Indian companies across EBRD’s regions of operation. It opens up further joint investment prospects for India in markets such as Central Asia, Egypt and Jordan.
European Bank for Reconstruction and Development (EBRD)
EBRD is a multilateral developmental investment bank. It was established in 1991 after fall of Berlin wall to promote private and entrepreneurial initiative in emerging Europe. It is owned by 65 countries and two EU institutions. It is headquartered in London, United Kingdom.
It initially focused to help former Communist states build their economies after the Cold War. Later it expanded to support development in more than 30 countries from central Europe to central Asia. Now it works only in countries that are committed to democratic principles using investment as tool to build market economies.
It invests in 38 emerging economies across three continents (North America, Africa, Asia and Australia) with predefined set of criteria that aim to make its countries more competitive, better governed, greener, more inclusive, more resilient and more integrated.