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EBRD Board of Directors approves a new five-year strategy for the Slovak Republic -
Key priority to accelerate the green transition and foster a more resilient economy -
EBRD has invested €3 billion in the country to date
The European Bank for Reconstruction and Development’s (EBRD) Board of Directors has approved a new country strategy for the Slovak Republic, which will guide the Bank’s investments and policy engagement in the country in the 2023-28 period.
The key priority of the new strategy is to advance the green transition and foster economic resilience.
Work on the green economy transition will focus on reducing CO2 emissions and incorporating ambitious sustainable energy targets for 2030 and 2050, as well as advancing waste management and supporting circular economy business models. Strategy implementation will be reviewed in 2026.
Energy efficiency and security (including through the roll-out of renewables) will be supported in line with the green agenda and to make the country’s economy more resilient, as the Slovak Republic needs to further reduce its reliance on fossil-fuel imports.
To boost economic resilience, the Bank will continue its work to deepen the country’s capital markets as an investor and with policy engagement to provide a wider variety of sources of finance.
In the previous strategy period, the EBRD achieved a number of investment and policy goals in the Slovak Republic that addressed the same issues. A key feature of this work since 2017 has been the development of green financing through capital markets.
For example, the EBRD invested €100 million in the first Minimum Requirement for Own Funds and Eligible Liabilities (MREL)-eligible issuances by Slovak banks, of which €80 million were green bonds.
In close cooperation with the Ministry of Finance and the National Bank, the EBRD helped develop new covered bond legislation, which entered into force on 1 January 2018 and brought about notable improvements recognised by issuers and investors. Rating agencies assigned the Slovak Republic’s first AAA rating to a covered bond programme. The EBRD itself participated in multiple covered bond issuances to the tune of €190 million.
To increase the access of small and medium-sized enterprises to alternative financing, such as equity, the Bank invested in several regional equity funds.
In total, since the start of its operations in the Slovak Republic, the EBRD has invested €3 billion in the country – reaching that milestone just as the new strategy was being approved.
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