Opening Asia for Russia

Nikolay Podguzov: "We see the bank as an anchor partner for promotion and participation in large integration projects"

12.01.2021 283 просмотров

15 years ago (2006), the representatives of the Russian Federation and the Republic of Kazakhstan signed the Agreement on the Establishment of the Eurasian Development Bank (EDB).

Officially, the Bank began its activities in June 2006 after the signing by the presidents of Russia and Kazakhstan of laws on the ratification of this international agreement, according to Parliamentskaya Gazeta.< br>
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An international financial organization designed to promote the economic growth of the member states, as well as the expansion of trade and economic ties between them and the development of integration processes in the Eurasian space, was created at the initiative of the presidents of Russia and Kazakhstan. Later, Armenia and Tajikistan (2009), the Republic of Belarus (2010), the Kyrgyz Republic (2011) joined the agreement.

At present, the authorized capital of the EDB exceeds $7 billion. The bank's headquarters is located in Alma-Ata. A branch was established in St. Petersburg, and representative offices were opened in Nur-Sultan, Bishkek, Dushanbe, Yerevan, Minsk and Moscow.

According to the Chairman of the Board of the Eurasian Development Bank (EDB) Nikolay Podguzov publication, in 2020, 14 agreements on investment projects were signed for a total of $1.274 billion. The country structure is dominated by projects in Russia ( 37.8%) and Kazakhstan (36.6%). Belarus accounts for 22.9%, Armenia for 1.2%, Kyrgyzstan for 1.5%, Interfax-Kazakhstan reported.

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Summing up last year, Nikolai Podguzov emphasized that “the process of de-dollarization observed in most of the bank's shareholder countries is reflected in the structure of the investment portfolio. The share of projects financed in rubles and tenge increased by 1.6 times over 5 years and today exceeds the share of projects financed in dollars and euros: projects in national currencies account for 51% of the EDB portfolio. 

« The increase in lending in national currencies led to an increase in demand for related operations: letters of credit, opening and maintaining accounts, cross-border transfers, conversion operations. The COVID-19 pandemic has become a challenge not only for our member states, but also for the Bank itself,” said the head of the Bank. - In the current difficult conditions and the post-crisis period, it is important to ensure the sustainability of economic development and integration cooperation between the member states of the bank. To help overcome the negative consequences of the COVID-19 pandemic, we are implementing anti-crisis support measures in three areas.”

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Nikolai Podguzov specified that within the framework of EDB borrower support, preferential conditions were provided, and requirements for violations of non-monetary financing conditions, additional deadlines for their implementation were provided for borrowers for projects in the participating States. The second direction of the EDB's anti-crisis work is to support investment activities to ensure the sustainability of the economic development of the member states. The Bank has ensured the continuity of the implementation of landmark investment projects in our countries. In the third direction, the Bank will use resources to participate in anti-crisis support plans for entrepreneurs of the participating States, including support for small and medium-sized businesses, targeted support in affected industries and support for trade and economic ties EDB member countries.

On June 30, 2020, the Board of the Bank established the EDB Digital Initiatives Fund, which has already held a competition for the best digital solutions to counter the spread and overcome the negative consequences of the COVID-19 coronavirus pandemic in the Eurasian space. The Fund also worked on and initiated the issue of creating a mobile application “I travel without COVID-19”, a single platform for migration is being created, which contributes to the formation of a single labor market. The Bank has created and successfully operates a settlement platform in national currencies, which is necessary for the formation of a single settlement area. 

In December 2020, the first Eurasian Congress in the history of the EDB organized by the Bank. At this event, among other things, the main directions of the bank's model transformation over the next five years were discussed, which will be reflected in the new EDB strategy. 

“We set ourselves the task of forming end-to-end integration projects as part of the formation of a single market of the EAEU in the energy sector, agro-industrial complex, as well as in infrastructure. Possessing unique project competencies for working in the Eurasian space, we see the Bank as an “anchor” partner for promoting and participating in major integration projects, including in the format of public-private partnership. By implementing such projects, we will develop the competence of the organizer of the work of development institutions, financial organizations, including in the format of syndicated loans to organize the financing of large projects. Built work with key partners in the Eurasian space, including the Eurasian Economic Commission, national and international development banks, commercial banks, will allow us to initiate "through" integration projects and provide support in the implementation of such initiatives at all stages of their development, - said Nikolay Podguzov. - We are a conductor of an objective picture of Eurasian integration not only in expert communities, but also in the public consciousness in our countries and abroad. Work on the new strategy of the Bank is already underway, and we hope that by the end of 2021 the goals and objectives will be supported by the member states and we will start implementing them.”

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