European Bank for Reconstruction and Development (EBRD)

About European Bank for Reconstruction and Development (EBRD):

• It is an international financial institution with the mandate to promote transition towards a sustainable, open market economy and to foster innovation.
• The EBRD was created in April 1991to help Eastern European and ex-Soviet countries transitioning into democracies by developing free-market economies after the fall of communism.
• Headquarters: London
• It provides project financing mainly for private enterprises, usually together with other commercial lending partners, in countries that are committed to, and apply, democratic principles. 
• It also works with public partners to support privatisation, restructuring and improvement of municipal services.
• It prioritizes support for countries in Central and West Asia, and North Africa.
• It focuses on advancing developmental goals in finance and policy reform.
• The organization also promotes environmentally sustainable development and gender equality and promises to be fully transparent.
• Membership: It is publicly owned by shareholders in 69 countries. India became the EBRD's 69th shareholder when it joined the Bank in July 2018.

 

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Q1) What are free-market economies?

The free market is an economic system based on supply and demand with little or no government control. It is a summary description of all voluntary exchanges that take place in a given economic environment. Free markets are characterized by a spontaneous and decentralized order of arrangements through which individuals make economic decisions.

Source: EBRD pledges more support for Ukraine with capital boost