Luxembourg Pledges €2m to EBRD Technical Assistance Projects

Luxembourg's Ministry of Finance recently announced that the Grand Duchy is supporting the European Bank for Reconstruction and Development's (EBRD) technical assistance projects in 2023 with €2 million.

At the end of February 2023, Luxembourg's Minister of Finance, Yuriko Backes, hosted the EBRD President Odile Renaud-Basso for a work interview. Discussions focused on the close cooperation between the Grand Duchy and the EBRD, the bank's support for Ukraine and other countries affected by the war, as well as preparations for the next annual meeting of the EBRD Board of Governors.

In 2022, the EBRD invested a record almost €1.7 billion in Ukraine, notably in support of energy and food security, trade and infrastructure. In 2023, the EBRD plans to invest another €1.5 billion in Ukraine, supported by donors and financial guarantees provided in particular by the European Union (EU). The EBRD is the largest international financial institution present in Ukraine, with cumulative investments exceeding €18 billion.

Minister Backes and President Renaud-Basso also signed a financing agreement for €2 million to continue to support the technical assistance projects implemented by the EBRD in 2023. According to the Finance Ministry, Luxembourg has been a major donor to EBRD activities since its creation in 1991, having invested more than €50 million in technical assistance projects (particularly in the Balkans) aimed at supporting and promoting the activities of small and medium-sized enterprises (SMEs), legislative reforms conducive to fostering entrepreneurship and legal certainty as well as harmonisation with EU rules and standards.

Minister Backes said: "EBRD technical assistance projects play a vital role in helping recipient countries build institutional capacity and foster sustainable economic growth. I am happy to be able to sign this agreement [...] to finance technical assistance projects in 2023 during these difficult times. This additional investment of €2 million demonstrates Luxembourg's continued commitment to the important work of the bank."