Russia hopes to increase EBRD operations to 3 bln-3.2 bln euro
ISTANBUL. Oct 6 (Interfax) - Russia would like to increase total operations within its borders by the European Bank for Reconstruction and Development (EBRD) from 2 billion euro in 2009 to 3 billion-3.2 billion euro in 2010, Russia's Deputy Prime Minister and Finance Minister Alexei Kudrin.
Kudrin added that this issue had been discussed during a meeting with the EBRD's leadership in Istanbul.
In 2007, the EBRD's total operations in Russia came to 2.5 billion, in 2008 - a bit less and in 2009 - 2 billion euro. "Now our task is to again reach 2.5 billion euro and, including the bank's capitalization, up to 3 billion-3.2 billion euro," Kudrin said.
He also said that the EBRD's capitalization had been discussed. Russia still believes that the EBRD should lighten norms on the ratio between capital and total loans allocated in order to boost lending opportunities. A decision to support the EBRD's capitalization, which also would help boost total loans, has yet to be made.
"We are nonetheless trying to discuss this issue [the ratio between capital and loans] in order to increase lending possibilities to a large extend. We will meet with the EBRD especially for discussion of this issue," Kudrin said.
"Russia has yet to make a decision [on injecting money into the EBRD's capital], we are studying this issue," he added.
"We today regard both positions [the capital increase and a lightening of norms] as equalized," Kudrin said.
The EBRD's capital comes to 20 billion euro.
World leaders at the G20 summit in London decided to increase funds at international development banks by $100 billion. The Asian Development Bank decided to increase its capital from $55 billion to $165 billion while the Inter-American Development Bank also launched a proceede to increas its capital, which currently stands at $101 billion. The African Development Bank could increase its capital by the end of 2011. However, no clarification has been made public on additional capitalization for the EBRD.
A source at the Finance Ministry earlier said that the World Bank had a capital to loans ratio that was somewhat less than the EBRD.