Why in News?
EBRD has given its nod to India’s candidature, With this, India will become the 69th member of EBRD.
FACTS FOR PRELIMS
About the Financial Institution
The Agreement Establishing the European Bank for Reconstruction and Development was signed in Paris in 1990 and entered into force in 1991.
It is owned by 67 shareholders, 65 countries and two international organisations. When each country or organisation became a shareholder – in many cases at the point of our establishment in the early 1990s – they made a contribution to an overall capital base.
The London-headquartered EBRD is a multilateral development bank set up in 1991 after the fall of the Berlin wall to promote the private and entrepreneurial initiative in emerging Europe. It invests in 38 emerging economies across three continents, according to a set of criteria that aim to make its countries more competitive, better governed, greener, more inclusive, more resilient and more integrated.
Significance For India
with leading Indian companies, such as Tata, Mahindra, SREI and Jindal, on investments in its regions, with the value of such joint projects worth, an estimated €1 billion. With India now taking a shareholding in the EBRD, it is expected that the scope of these joint initiatives will be further enhanced.
While India will not be a recipient of EBRD financing, it will benefit from the bank’s expertise and support in the region.