The governors of the European Bank for Reconstruction and Development have agreed to start the process of expanding the geographical scope of the bank’s lending operations to include Middle Eastern and North African countries.
The proposal adopted by the governors in a meeting in Kazakhstan on Saturday (May 21) could see EBRD lending up to €2.5 billion ($3.5 billion) annually to Egypt and other transitioning countries in the region, The Wall Street Journal says.
The governors have forwarded the proposal to EBRD directors, who are expected to submit formal proposals by July 31, according to Reuters.
Any proposal to expand the bank’s mandate requires the unanimous approval of all of EBRD’s 63 shareholders. If approved, Egypt would be the first country to benefit, with EBRD providing financial assistance by 2012.
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