MOSCOW, 31 October (BelTA) – The Eurasian Development Bank has been increasing its lending portfolio giving preference to infrastructure projects, Dmitry Pankin, Chairman of the Board of the Eurasian Development Bank, noted at the 12th international conference Eurasian Integration in Moscow on 31 October, BelTA has learned. BelTA has learned.
Dmitry Pankin took note of the bank's good financial performance. “In recent years, the number of new loan agreements has increased. Last year it was $700 million. This year we will beat that figure. I hope that by the end of the year we will conclude $1 billion worth of new loan agreements. The portfolio in the pipeline includes the projects worth $5 billion. The results are good,” Dmitry Pankin said.
Meanwhile, investment projects, he said, are especially important for the EDB as they unite countries, bind their economies by the common infrastructure. Let's take road construction, for example. Investment portfolio includes mostly projects in Russia and Kazakhstan. The share of projects in other countries is smaller. For example, among seven key ongoing projects (energy, transport infrastructure and other sector) only one is being implemented in Belarus (construction of a small section-wire mill at the Belarusian Steel Mill). “With regards to other countries we mostly work through the Eurasian Fund for Stabilization and Development (EFSD). Thanks to it we have built a large investment portfolio, almost $200 million, in Armenia,” Dmitry Pankin said. There are not many integration projects to set up clusters. Mostly we see the need for the common infrastructure, Dmitry Pankin noted.
Dmitry Pankin urged to cooperate with China taking advantage of this huge market rather than fighting against it. “There are not many infrastructure projects with China,” Dmitry Pankin said. For example, China's main project to develop the Silk Road can be used for the development of the road infrastructure in the countries through which it passes. “Other big areas include energy, everything that has to do with oil and gas pipelines. So far, the examples have been few but the potential is huge,” Dmitry Pankin said.
The Eurasian Fund for Stabilization and Development with a size of $8.513 billion was founded by Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia and Tajikistan in 2009. The fund aims to assist the member countries in overcoming the consequences of the global financial crisis, ensuring their economic and financial stability, and supporting the integration processes in the region.
The Eurasian Development Bank (EDB) is an international financial organization. It was established by Russia and Kazakhstan in January 2016 with a view to contributing to the development of the market economies of the member states, to their sustainable economic growth, and the expansion of mutual trade and economic ties. The EDB's charter capital stands at $7 billion. The EDB member states are Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, and Tajikistan.
Since 2008, the EDB has been annually holding the international conference Eurasian Integration which has proven to be an effective forum for communication, exchange of information and opinions between financial institutions, government bodies and agencies, and commercial entities. The participants hold discussions and work out recommendations which help formulate new approaches to the EDB investment policy and constructive suggestions on the EAEU development.More about Economy