International currency and financial institutions - The European Bank for Reconstruction and Development and the European Investment Bank Andrea Bolčáková Andrea Bolčáková Andrea Manová Andrea Manová 2nd year, 11th group, MPA The Slovak Agricultural University in Nitra Faculty of economy and management International Finance

European Bank for Reconstruction and Development European Bank for Reconstruction and Development founded in 1990 in Paris founded in 1990 in Paris started its function in 1991 in London started its function in 1991 in London 61 shareholders 61 shareholders basic capital - 10 billion of ECU + independent deposits from EC and EIB basic capital - 10 billion of ECU + independent deposits from EC and EIB now total capital - 20 billion of EUR now total capital - 20 billion of EUR It uses the tools of investment and stimulus to help build market economies and democracies from central Europe to central Asia It uses the tools of investment and stimulus to help build market economies and democracies from central Europe to central Asia

European Bank for Reconstruction and Development Every EBRD investment must: help to move a country closer to a full market economy: the transition impact help to move a country closer to a full market economy: the transition impact take risk take risk apply sound banking principles apply sound banking principles

Through investments it promotes: Structural and sectoral reforms Structural and sectoral reforms Competition, privatisation and entrepreneurship Competition, privatisation and entrepreneurship Stronger financial institutions and legal systems Stronger financial institutions and legal systems Infrastructure development needed to support the private sector Infrastructure development needed to support the private sector Adoption of strong corporate governance, including environmental sensitivity Adoption of strong corporate governance, including environmental sensitivity European Bank for Reconstruction and Development European Bank for Reconstruction and Development

Financing of the EBRD Financing of the EBRD EBRD its financial resources by borrowing finance at international capital fairs EBRD its financial resources by borrowing finance at international capital fairs Bank doesnt use directly the capital of shareholders to finance its loans it borrows capital at international fairs by issuing debentures and other tools at advantageous profitable market rates. Bank doesnt use directly the capital of shareholders to finance its loans it borrows capital at international fairs by issuing debentures and other tools at advantageous profitable market rates.

Organisational structure of the EBRD The Board of Governors - most powerful body of the bank The Board of Governors - most powerful body of the bank The Board of Directors - responsible for the EBRDs strategic direction, 23 members (executive directors) The Board of Directors - responsible for the EBRDs strategic direction, 23 members (executive directors) The president - elected by the Board of Governors for 4 years, now Jean Lemierre (France) The president - elected by the Board of Governors for 4 years, now Jean Lemierre (France)

Slovakia and EBRD at EBRD had signed 67 projects in the SR totalling over 1 billion of EUR at EBRD had signed 67 projects in the SR totalling over 1 billion of EUR goals: the reduction of the regional imbalances and the high unemployment rate goals: the reduction of the regional imbalances and the high unemployment rate In the financial sector concentration on non- bank financial institutions In the financial sector concentration on non- bank financial institutions The Bank activities in the SR have slowed as a result of significant progress in transition and the emergence of a strong banking sector The Bank activities in the SR have slowed as a result of significant progress in transition and the emergence of a strong banking sector

Slovakia and EBRD Slovakia and EBRD Slovakia has made significant progress in transition with: 80 % of economic activity in private hands, 80 % of economic activity in private hands, a large degree of price liberalisation, a large degree of price liberalisation, an open foreign trade regime, an open foreign trade regime, a conducive environment for attracting foreign investment. a conducive environment for attracting foreign investment.

European Investment Bank created by the Treaty of Rome in 1958 as the long-term lending bank of the EU created by the Treaty of Rome in 1958 as the long-term lending bank of the EU main purpose: main purpose: to contribute towards the integration, balanced development and economic and social cohesion of the EU Member States to contribute towards the integration, balanced development and economic and social cohesion of the EU Member States

European Investment Bank the EIB Group consists of the European Investment Bank and the European Investment Fund (EIF) the EIB Group consists of the European Investment Bank and the European Investment Fund (EIF) the area of cooperation is in support of small and medium-sized enterprises (SMEs) the area of cooperation is in support of small and medium-sized enterprises (SMEs) the EIB provides long term loans to large capital investment projects the EIB provides long term loans to large capital investment projects the EIF focuses on investment in innovative SMEs and on SME guarantee operations involving own resources the EIF focuses on investment in innovative SMEs and on SME guarantee operations involving own resources

The operational strategy of the Bank The EIB has 6 priority objectives: The EIB has 6 priority objectives: Cohesion and Convergence Cohesion and Convergence Support for small and medium-sized enterprises (SMEs) Support for small and medium-sized enterprises (SMEs) Environmental sustainability Environmental sustainability Implementation of the Innovation 2010 Initiative (i2i) Implementation of the Innovation 2010 Initiative (i2i) Development of Trans-European Networks of transport and energy (TENs) Development of Trans-European Networks of transport and energy (TENs) Sustainable, competitive and secure energy Sustainable, competitive and secure energy

Cohesion and Convergence one of the EIB's operational priorities is supporting development in the less favored regions one of the EIB's operational priorities is supporting development in the less favored regions in October 2005 EIB and EIF presented two major joint policy initiatives: in October 2005 EIB and EIF presented two major joint policy initiatives: JASPERS (Joint Assistance to Support Projects in European Regions) JEREMIE (Joint European Resources for Micro- to-Medium Enterprises)

Support for small and medium sized enterprises (SMEs) Supporting investment is a key goal of the EIB´s operational activities. Supporting investment is a key goal of the EIB´s operational activities. The expertise of the EIB and the EIF is combined to support activities in the SME sector, which accounts for over 75 million jobs and 99% of all European enterprises. The expertise of the EIB and the EIF is combined to support activities in the SME sector, which accounts for over 75 million jobs and 99% of all European enterprises.

Environmental Sustainability EIB focuses on 5 areas of interest for its environmental lending: EIB focuses on 5 areas of interest for its environmental lending: improving the quality of life in the urban environment, through urban renewal and sustainable urban transport projects improving the quality of life in the urban environment, through urban renewal and sustainable urban transport projects addressing environmental and health issues addressing environmental and health issues tackling climate change, including energy efficiency and renewable energy tackling climate change, including energy efficiency and renewable energy protecting nature and wildlife protecting nature and wildlife preserving natural resources and managing waste preserving natural resources and managing waste

Innovation 2010 Initiative and The Trans-European Networks (TENs) Innovation 2010 Initiative and The Trans-European Networks (TENs) With the establishment of the Lisbon Agenda in 2000, the EU sets itself the strategic goal of establishing a competitive, innovative and knowledge-based European economy With the establishment of the Lisbon Agenda in 2000, the EU sets itself the strategic goal of establishing a competitive, innovative and knowledge-based European economy TENs are large infrastructure networks of transport, energy and telecommunications underpinning the developmental and integration goals of the EU TENs are large infrastructure networks of transport, energy and telecommunications underpinning the developmental and integration goals of the EU TENs cover the whole of the Union of 27 Member States TENs cover the whole of the Union of 27 Member States

Sustainable, Competitive & Secure Energy Energy is at the top of the EU policy agenda, in relation to the security of supply, climate change considerations and competitiveness. Energy is at the top of the EU policy agenda, in relation to the security of supply, climate change considerations and competitiveness. The EIB has 5 priority areas: Renewable energy Renewable energy Energy efficiency Energy efficiency Research, development and innovation Research, development and innovation Diversification and security of internal supply Diversification and security of internal supply External energy security and economic development External energy security and economic development

Organizational structure of the EIB Shareholders – 27 Member States of the EU Shareholders – 27 Member States of the EU The Board of Governors = Ministers from each of the 27 Member States. The chairman is Tommaso Padoa-Schioppa (Italy) The Board of Governors = Ministers from each of the 27 Member States. The chairman is Tommaso Padoa-Schioppa (Italy) The Board of Directors = 28 Directors The Board of Directors = 28 Directors The Management Committee = the Bank's permanent collegiate executive body. 9 members. President is Philippe Maystadt. The Management Committee = the Bank's permanent collegiate executive body. 9 members. President is Philippe Maystadt. The Audit Committee - an independent body answerable directly to the Board of Governors. The chairman is Maurizio Dallocchio. The Audit Committee - an independent body answerable directly to the Board of Governors. The chairman is Maurizio Dallocchio.

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