The European Bank for Reconstruction and Development (EBRD) is a financial institution dedicated to promoting economic growth in emerging markets in Europe and Asia. It was established in 1991 to help countries transition from centrally planned to market economies by providing financing and technical assistance.

Recently, the EBRD signed an agreement with the European Union (EU) to expand its operations and increase its impact in the region. The agreement will enable the EBRD to increase its capital base and leverage its resources to support more sustainable and inclusive growth in the countries it serves.

Under the agreement, the EU will provide €7.4 billion in paid-in capital to the EBRD over the next three years. This will increase the bank`s capital base and enable it to lend more to businesses and projects in its member countries. It will also allow the bank to provide more technical assistance and support to governments and other stakeholders in areas such as infrastructure, energy, and finance.

The agreement is part of the EU`s broader efforts to promote economic development and stability in the region. By working with institutions like the EBRD, the EU hopes to support the growth of market economies, create jobs, and improve living standards for people in the region.

The EBRD has a strong reputation for promoting sustainable development and advancing environmental and social goals. It has supported the development of renewable energy sources, promoted gender equality, and helped to improve access to finance for small and medium-sized enterprises (SMEs).

The new agreement with the EU will enable the EBRD to build on these achievements and expand its impact in the region. It will enable the bank to support more SMEs, promote the adoption of green technologies, and strengthen the capacity of governments to implement sound economic policies.

Overall, the agreement between the EBRD and the EU is an important step towards promoting economic growth and stability in the region. As the bank expands its operations and increases its impact, it will continue to play a critical role in supporting the transition to market economies and improving the lives of people in emerging markets.