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LONDON May 9 The European Bank for
Reconstruction and Development said on Friday it would vote at
its annual meeting next week on making Cyprus a temporary
recipient of funds and on admitting Libya as a member, a first
step to receiving funds.
Euro zone member Cyprus suffered from the euro zone debt
crisis. Libya is trying to rebuild its economy following the
overthrow of Muammar Gaddafi.
Cyprus has asked to be a temporary recipient of funds "to
reform and restructure the Cyprus economy," the EBRD said in a
statement. Speaking to reporters, the bank's head, Suma
Chakrabarti, said a total of 500 million-700 million euros of
funding had earmarked for the next six years.
Libya has also asked to be a member of the bank as a first
step to receiving finance. The EBRD's shareholders, the biggest
of which are G7 governments, are expected to approve the plans
when they meet in Warsaw on May 14-15. Any steps to establish
recipient status would start after the Warsaw meeting."
The bank added that new economic forecasts published next
week would show "significant deterioration" in the outlook for
Russia and Ukraine and a worsening picture for Turkey.
"One of the reasons is the fallout of the Russia-Ukraine
situation," Chakrabarti said. "Another reason for the general
anemic recovery is that the euro zone recovery is still taking
time. It has not been quite as quick as hoped."
The bank, which focuses on private-sector funding, said it
will urge further reforms in the emerging Europe and north
Africa region in which it operates.
It is set to sign an anti-corruption pact with Ukraine
before the meeting on Monday. That will include creating an
ombudsman to monitor business dealings to try and stamp out
The bank invested 2.3 billion euros in the region in the
January-April 2014 period, versus 1.4 billion euros in the same
period in 2013.
Russia is by far the biggest recipient of its funding.
Chakrabarti said so far there was no pressure to cut its
dealings with Russia because of tension between Russia and
Ukraine. "We are carrying on processing projects (in Russia) in
the normal way," he said.
(Reporting by Marc Jones and Carolyn Cohn)