Tunis/Tunisia — Investments by the European Bank for Reconstruction and Development (EBRD) leapt to a record high in the first half of 2020 as the Bank responded rapidly to the needs of emerging economies grappling with the impact of the coronavirus.
According to an article published on Friday on EBRD's website, financing rose to just over €5 billion in the first six months of the year, compared with €3.7 billion a year earlier and a previous first half record of €3.9 billion in 2016. The Bank complemented its increased financing with scaled-up policy support.
The EBRD invests to promote sustainable and inclusive private sector development across 38 emerging economies, including Tunisia.
In March the EBRD unveiled its coronavirus Solidarity Package - a series of measures put in place to meet the regions' immediate needs while also preparing for robust recovery once the pandemic is over.
"A key pillar of the Solidarity Package is a framework providing emergency liquidity and working capital to existing clients. Demand for the emergency funding has been strong and the new facility accounted for over €1 billion of total EBRD financing in the month of June alone," the article reads.
In April the EBRD said it would dedicate the entirety of its activities to tackling the Covid-19 pandemic and that it expected to invest some €21 billion through to the end of 2021.
"Since the outbreak of the virus, the pace of disbursements has been consistently faster than in 2019. Donors have stepped up to support the Bank's Solidarity Package with a record volume of contributions for the first half of the year, providing much-needed grant and concessional co-financing. Covid-19 has severely affected trade flows and access to trade finance, so the EBRD has increased support for commerce under its Trade Facilitation Programme."
In the first half of 2020 the Bank financed over 1,000 trade deals with a record turnover of €1.9 billion. It has raised its total exposure limit under the programme by 50 per cent to €3 billion.
In addition to focusing on the immediate response to the coronavirus, the EBRD is working to ensure that recovery from the pandemic will be resilient and sustainable and in line with global climate goals that preserve commitments to a low carbon economy.
Besides, in July the EBRD unveiled ambitious proposals to become a majority "green" bank by 2025.
In Tunisia, cumulative EBRD investments amount to €945 million, including €579 million of Cumulative disbursements.
The private sector share of the portfolio stands at 49%.