Switzerland to increase financial support for Ukraine
Bern, 13.09.2024 - Switzerland is to contribute CHF 96.11 million to the increase in capital of the European Bank for Reconstruction and Development (EBRD) for Ukraine. The Federal Council adopted the corresponding dispatch on 13 September, thus strengthening Switzerland’s commitment to Ukraine.
The Federal Council is asking Parliament for a guarantee credit of CHF 96.11 million in order to participate in the capital increase of the EBRD, which will be used in particular for the reconstruction of Ukraine. The Federal Council is also requesting an amendment to the EBRD's founding agreement, so that the bank can gradually expand its activities to sub-Saharan Africa and Iraq.
Russia's military aggression against Ukraine is exacting a high death toll and causing immense destruction. It is also threatening the security and stability of Europe. The EBRD is Ukraine's most important institutional investor and therefore a key partner. The bank's member countries have agreed to increase its capital by EUR 4 billion. Thanks to the EBRD's business model, this additional capital will generate around EUR 24 billion in loans for Ukraine by 2032, enabling it to reform the business environment and make significant climate-related investments in cooperation with the private sector as part of the recovery process.
Switzerland's participation in increasing the capital of the EBRD underlines its role as a credible and reliable partner. With the expansion of the bank's activities to sub-Saharan Africa and Iraq, Switzerland is making a contribution to achieving the Sustainable Development Goals.
The EBRD was founded in 1991 to support the development of the market economy in Central and Eastern Europe. For Switzerland, it is an important multilateral partner for international cooperation. Switzerland is a founding member of the EBRD. It has a permanent seat on the Board of Directors and heads a constituency of which Ukraine is also a member.
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EAER Communication Service
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Publisher
The Federal Council
https://www.admin.ch/gov/en/start.html
Federal Department of Economic Affairs, Education and Research
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