IFIs pledge continued drive to support Central and Eastern Europe

The European Bank for Development and Reconstruction (EBRD), the European Investment Bank (EIB) Group, and the World Bank Group spread Monday a press release in which warned against complacency in the face of significant challenges that stand in the way of economic recovery in Central and Eastern Europe.

Meeting in Istanbul at the World Bank and International Monetary Fund Annual Meetings, EBRD President Thomas Mirow, EIB President Philippe Maystadt and World Bank Vice President Philippe Le Houérou said that unprecedented coordinated international action had helped stave off a systemic crisis in the region.

This year’s February 27 the three international financial institutions (IFIs) launched Plan in support of banking systems and lending to the real economy in regoin aimed to: A - support banking sector stability and lending to the real economy in crisis-hit Central and Eastern Europe with a financing plan of up to €24.5 billion for 2009-2010; B - commit to make joint assessments of large bank groups’ financing needs; and C - rapidly deploy assistance in a coordinated manner, according to each institution’s geographical and product remit.

At their meeting in Istanbul, the three signatories of the Joint IFI Action Plan presented their first Joint Progress Report, discussed new challenges ahead, and future areas of cooperation. Their report noted that policy dialogue cooperation between the three IFIs, in close collaboration with the IMF and the European Commission, had facilitated the management of the crisis on a private-public sector platform under the European Bank Coordination (Vienna) Initiative.

However, despite signs that the grip of the economic crisis is easing, and despite country variations, significant challenges remain ahead before the region can get firmly on the road to recovery and growth.
The Institutions believe that economic recovery will depend critically on private-sector growth, which will not re-emerge without lending to the real sector.

Looking forward the three institutions pledge to persevere in their efforts under the Joint IFI Action Plan to support lending to the real economy and in the region, while addressing the challenges ahead in close collaboration with other international and European institutions and governments.