EBRD says continuous support for Ukraine is key challenge - president

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The new headquarters of the European Bank for Reconstruction and Development (EBRD) in London
People walk past the new headquarters of the European Bank for Reconstruction and Development (EBRD) in Canary Wharf, London, Britain, September 14, 2023. REUTERS/Alishia Abodunde/File Photo Purchase Licensing Rights, opens new tab
LONDON, Oct 2 (Reuters) - A sustained high level of support for Ukraine is a key challenge ahead, the European Bank for Reconstruction and Development(EBRD) said on Monday, after further military funding was excluded from a U.S. congressional budget deal.
The comments by EBRD President Odile Renaud-Basso come after U.S. Congress passed a stopgap bill on Saturday that extended government funding for more than a month and avoided a shutdown, but it did not include aid for Kyiv. However, U.S. President Joe Biden said support will continue, without providing further details.
"What happened in the U.S. Congress raises some questions," Renaud-Basso said in a media briefing in London ahead of the International Monetary Fund and World Bank annual meetings next week in Marrakech.
"The U.S. president reaffirmed a strong commitment, but this is a very important question for Ukraine."
Washington has been a major supporter of Ukraine after Russia invaded its neighbour in February 2022. The U.S. is also the largest shareholder of the EBRD, which is owned by 71 countries and European Union institutions.
EBRD financing in Ukraine has provided 1.2 billion euros so far in 2023, and the bank said is on track to deliver its commitment to finance at least 3 billion euros in the 2022-2023 period. The bank's financing is focused on the real economy and reconstruction efforts.
Shareholders of the EBRD continue talks to boost its capital by 3 billion-5 billion euros, Renaud-Basso said, adding that the bank should announce a decision on capital increase by year-end.
The capital increase is "triggered because of Ukraine," the EBRD president said.
"It will allow us to continue to support all our countries of operation, some of them need a lot of financial support because they have been either directly or indirectly impacted by the war," she added.

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Reporting by Jorgelina do Rosario, editing by Karin Strohecker and Angus MacSwan

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Jorgelina do Rosario is Emerging Markets Correspondent at Reuters based in London, where she covers finance and economics across developing economies, from fixed income assets and sovereign debt crises to IMF programs. Previously she was an editor and reporter in Bloomberg for over four years based in Buenos Aires, reporting on Argentina's economy and finance. She holds a Master in Finance from Universidad Torcuato Di Tella.

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