The European Bank for Reconstruction and Development (EBRD) has announced record investments for the first part of this year. The bank committed EUR 1.9 billion in 73 individual transactions during the first quarter of 2012, well up from the EUR 1.1 billion in 67 transactions in the same period last year.

Preparations to extend activities in the southern and eastern Mediterranean (SEMED) region were advanced and the EBRD continued to support Central and Eastern Europe. “This has been a strong first quarter. At a time when credit remains restricted in many markets, these figures show that the EBRD has an important role to play in supporting growth. With record volumes and sound profitability and capital position, the Bank is in excellent shape going into its annual meeting,” said EBRD President Thomas Mirow.

Net profits of EUR 637 million for Q1 2012 were almost double the profits of the same period in 2011 and set a new record for quarterly results. The EBRD cites “strong net interest income and a recovery in the value of the Bank’s equity investments” as accounting for the record breaking first quarter. Financing for the EBRD's early transition countries (which includes Moldova, as well as Armenia, Georgia, Azerbaijan and other Asian steppe states) was nigh on doubled, up to EUR 214 million, while funds for the Western Balkan were increased slightly to EUR 161 million.

The EBRD has also set up temporary offices in Cairo, Casablanca and Tunis, while awaiting shareholder approval for an extension to its area of activity to the region. Before activity gets in full swing in the SEMED region, the EBRD will propose starting a EUR 1 billion investment fund for the area to shareholders. According to EBRD estimates, the bank will eventually invest around EUR 2.5 billion annually on the SEMED region. This will not reduce existing levels of funding to areas where the bank currently operates, the EBRD claims.

Liam Lever, liam@romania-insider.com