06/10/2010 Session
Parliamentarians today debated the causes and effects of the financial and economic crisis focusing on the eastern regions of Europe with specific reference to the activities of the European Bank for Reconstruction and Development last year, based on a report by Hermine Naghdalyan (Armenia, ALDE). The adopted resolution notes the Bank`s swift and effective investments helping to stabilise the economic situation in the worst hit countries, spending a record €5.5 billion in disbursements despite itself incurring a net loss of € 746 million due to contracting equity operations and higher provisions for possibly underperforming loans.
The Assembly called on the EBRD to continue helping the recovery by maintaining its increased lending over the next few years, especially to the weakest countries, while assisting in the process of reform in all areas of finance including pensions. The Bank should continue to prioritise investing in “green” commerce, smaller enterprises and women entrepreneurs. On the other hand, member states need to draw from the lessons of the crisis for example by encouraging more effective regulation and good governance to boost more responsible lending and investment practices.