OPENING STATEMENT BY THE CHAIR OF THE BOARD OF GOVERNORS

Transcription

1 OPENING STATEMENT BY THE CHAIR OF THE BOARD OF GOVERNORS AM01e-X 1 EA

2 Marek Belka, Chairman of the Board of Governors of the EBRD Annual Meeting, Warsaw, May 2014 Chair s Opening Speech, Your Excellences, Distinguished Governors, President, Ladies and Gentlemen: It is with great pleasure that I welcome you to the EBRD s 23 rd Annual Meeting in Warsaw. Our gathering here takes place twenty-five years after the first free elections were held in Poland. These elections heralded the process of political and economic transition in Central and Eastern Europe. Two weeks ago we celebrated the 10 th anniversary of membership of many the so-called New Member States in the European Union. So today is a good time to reflect on the experiences gained over that quarter-century. I am sure that our Annual Meeting here will be an excellent occasion for us, the Bank s Governors as well as the many other stakeholders involved in the Bank s work to discuss the lessons we have learned over this period. As the theme of our Annual Meeting says, this has been the period of Changing Economies, Changing Lives. But in this opening speech, I would like to look back upon the Bank s path since we met a year ago in the great city of Istanbul. The wider context for the Bank s transition efforts in 2013 has been composed of two elements. First, many of countries of operations continued to be vulnerable in economic terms. Global recovery was not sufficiently strong to deliver a substantial push for them from the outside. Not surprisingly, the verdict given in the last year Transition Report was sharp: much of the Bank s regions were stuck in transition. Second, on the political scene, in the last months, we have observed with great and growing concern the developments in the southern and eastern parts of Ukraine and Egypt. In such a testing context, the international community has a more important role than ever in seeking common solutions, alleviating hardships and laying the ground for peaceful and sustainable development. Over the past year, the EBRD has played a key role in this joint effort to promote prosperity and understanding throughout its regions of operation. AM01e-X 2 EA

3 I will focus on some key results of the Bank for The Bank maintained a high level of activity in its regions and importantly with a strong emphasis on transition impact. Annual investment amounted to EUR 8.5 billion, which is a testament to the Bank s dedicated work in the difficult operational environment. Moreover, in its projects the Bank has been able to maintain high standard in terms of their transition impact. The Bank s activities were spread across its entire original region, meeting the specific challenges in early transition countries as well as the more advanced ones. The Bank also made significant progress in scaling up its operations in the newest recipient countries of the SEMED region. There, the Bank s investment amounted to approximately half a billion Euro and focused on key areas such as infrastructure, SMEs, financial institutions, energy efficiency and sustainable energy. The Bank has started opening permanent offices in these countries which will further boost its local presence, knowledge of the business environment and potential business partners and lead to further enhancement of the Bank s investments and its ability to help the transition process. At this Annual Meeting we have on the agenda a resolution on membership of another country in the SEMED region Libya. This would be the first step leading to Libya becoming a recipient country as well. I am very supportive of this process, as it means that the Bank will be able to apply its considerable expertise to the transition challenges in Libya. In this regard, I would like to welcome the official Libyan delegation, who are here with us today. In other parts of its original region, the Bank has once again demonstrated its ability to react quickly to evolving circumstances. This also refers to countries that are traditionally considered more advanced in the transition process. The Bank decided to re-open its Resident Office in Ljubljana in order to assist Slovenia in overcoming the crisis environment, and to help the authorities implement their market reform programme, including major privatisations and restructuring of the economy. In a similar vein, the Bank s management and Board of Directors responded rapidly to a request from Cyprus for a time-bound proposal on recipient status to help the Cypriot authorities in their efforts to reform and restructure the economy in order to put it on a more sustainable basis. This proposal is on our agenda at this Annual Meeting. I am particularly pleased that the Bank has had a record breaking year in terms of operational results in South East Europe. The Bank s efforts over many AM01e-X 3 EA

4 years to promote transition in this region have been key in addressing the difficult legacy of the past and putting the countries of the Western Balkans on a more sustainable reform path. At its Headquarters in London, the Bank held a unique high-level event, bringing together Prime Ministers from across the Western Balkans. This emphasised not only the Bank s contribution to a substantial progress in transition in this region but also the great trust that these leaders place in the Bank.. In order to leverage its transition efforts in the most effective way, the Bank has continued to develop operations in the context of strategic initiatives over the past year. The Bank launched the Sustainable Resource Initiative which we, the Governors, endorsed at the Annual Meeting in Istanbul. It has already delivered strong results, both in the more traditional area of sustainable energy and in the new areas of water and materials efficiency. Last year, we also endorsed the development of a Small Business Initiative, which was approved later in the year by the Board of Directors. The Initiative unifies the various strands of activities into a more strategic framework in order to leverage even better the Bank s efforts in this crucial operational area. The Bank s support for small business will continue to play a pivotal role in both supporting economic transition and improving people s lives. Other elements that enrich the Bank s transition mandate and have direct impact on improving the lives of ordinary people are, among others, the Bank s work on economic inclusiveness and its strong emphasis on promoting transition in early transition countries. It is pleasing to see that the Bank has delivered these positive operational and transition results while staying strong financially. The Bank continued its robust profitability in the last year, with a net profit of over EUR 1 billion. This financial strength will allow the Bank to continue being a reliable partner for its recipient countries in meeting their transition challenges. The Bank operates on the basis of market principles, which is one of the key strengths of its business model, and a source of added value for all EBRD shareholders. However, this requires that in more challenging environments, such as in the early transition countries, the Bank needs continuing donor support for technical co-operation, as well as the sharing of investment risk. I wish to pay tribute to the donors who supported the Bank s activities over the past year with contributions close to an impressive EUR 340 million. You are an integral part of the Bank s transition efforts and successes. AM01e-X 4 EA

5 An overview of the activities of the past year would not be complete without thanking those who continue to deliver the Bank s mission successfully. I have in mind the Bank s dedicated staff, who continue working hard in support of the transition process in the Bank s regions. On behalf of all of us, I wish to thank them, as well as the Bank s management and the Board of Directors for their valuable work. Conclusion Your Excellences, Governors, Ladies and Gentlemen Over the coming days, we will hold a number of important discussions and make key decisions which will determine the Bank s next steps in fulfilling its mandate. During our Roundtable discussion this afternoon, we will exchange views on the Bank s Medium Term Directions, to help the institution remain at the centre of joint efforts to re-energise transition in its region. We will also consider other documents related to the Bank s strategic direction and processes, such as the Bank s Strategy Implementation Review and the reform of its planning process. We will vote on extension of EBRD membership to Libya, and also on the addition of Cyprus to the Bank s recipient countries. I look forward to your interventions and views on addressing these issues. I have no doubt that, by the end of this Annual Meeting, our debates and decisions will have provided the Bank with a clear guidance on how to orient its activities so that it can continue changing economies and changing people s lives for better. AM01e-X 5 EA