With the critical Greek elections just 5 days away, the European Bank for Reconstruction and Development (EBRD) has spread disappointment to the country’s business world as it put off a decision over its operation in Greece until after the polls. The bank’s board informed the Greek Development Ministry that its decision is postponed, as according to their reasoning there were several objections expressed by some of its members as to whether Greece will stick to the agreed economic reforms program after the January 25 elections, when anti-austerity SYRIZA might be elected, as opinion polls have shown so far. The country was expecting to receive investments from EBRD due to a deal reached in late 2014, when the bank agreed to operate a branch in Athens in order to provide loans to small and medium Greek enterprises. According to the agreement, some six billion euros with low interest rates – different than in other European countries – would be provided to Greek businesses. Explaining the worrying delay, EBRD First Vice President Philip Bennett ruled out the speculation on an upcoming Grexit danger, which is lately dominating the Greek public sphere. According to a Reuters report, Bennett, speaking at a Euromoney conference on Central and Eastern Europe in Vienna, highlighted that “we would be very concerned about a Grexit from the point of view of taking away the model of euro stability and euro cohesion and undermining what we think is the gravitational pull of the EU model and the convergence anchor.” What is the European Bank for Reconstruction and Development (EBRD): Greece is a founding member of EBRD, holding a 0.65% capital share, and a representative in the Board of Directors. In total, EBRD is owned by 64 countries and is currently operating from the heart of Europe to Central Asia. It was founded in 1991 to create a new post-Cold War era in Central and Eastern Europe, furthering progress towards “market-oriented economies and the promotion of private and entrepreneurial initiative.” In a close cooperation with the private sector, the bank invests in projects and provides technical assistance that builds open-market economies. Each shareholder is represented on the Board of Governors, which has overall authority over the bank. Under the guidance of the Board of Directors, the President manages the bank’s business. The Executive Committee and senior management team advise the President and oversee EBRD activities. Its current President is Sir Suma Chakrabarti, who took office in 2012.
 |
| READ THE ORIGINAL POST AT greece.greekreporter.com |
