European Bank of Reconstruction and Development shareholders have chosen to increase the Bank’s capital by 50 per cent to €30bn. Expecting “continued high demand for the Bank’s investments,” governors have approved the measure, setting the scene for more investment over the next five years. Indeed, investments from 2010 to 2015 are expected to exceed all investments made since the Bank’s inception in 1991 (see chart).
€9bn of the additional €10bn funds will come in the form of ‘callable capital’, making this decision essentially a pledge by the 63 owners to cough up the cash should they need to. More than 50 per cent of current subscriptions come from six countries: US, France, Germany, Italy, Japan and the UK.