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EBRD board to Georgia & Armenia
Directors from the European Bank for Reconstruction and Development are on a
seven-visit to Georgia and Armenia. They are meeting senior government
officials and business leaders in the respective countries, as well as
investors and representatives of the international and diplomatic community
and civil society.
The EBRD's board of directors represents the Bank's 62 public shareholders,
rather than its executive arm, and approves all Bank projects. The goal of the
visit is to learn more about the state of reforms and transition in the region
as the Bank prepares its new two-year strategy for Armenia, due before the end
of 2005. Both Georgia and Armenia participate in the Bank’s 2004 Early
Transition Countries (ETC) initiative, which aims to stimulate market activity
in the Bank’s seven lowest-income countries of operations by using a
streamlined approach to financing more and smaller projects.
The Bank’s cumulative commitments in Georgia, which is pursuing structural
reform and a large-scale privatization programme, stood at €319.6 million in
August 2005. The EBRD’s main strategic orientations for Georgia focus on the
promotion of private-sector activity and investment through support for
domestic and foreign investors, small and medium-size enterprises to build
stability in the power sector and enhance the investment climate. In Tbilisi,
the seven EBRD directors will meet President Mikheil Saakashvili, Prime
Minister Zurab Nogaideli, National Bank President Roman Gorsiridze and
Parliament Chairwoman Nino Burjanadze.
The Armenian economy continues to perform encouragingly in 2005, recording a
growth rate of 11.7 per cent in the first eight months of the year, in line
with the average of the past four years. Foreign direct investment inflows
were sharply higher in 2004, poverty on the decline, fiscal performance
improving and public debt sustainable. Total EBRD investment in Armenia was
€32.1 million in May 2005. The EBRD delegation will meet President Robert
Kocharyan, Prime Minister Andranik Margaryan and key ministers. The Bank is
considering a variety of new equity investments and cooperation with Armenia’s
strengthening banking sector to bring more financing to smaller businesses.
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