DAVOS, Switzerland, Jan 18 (Reuters) – The European Financial institution for Reconstruction and Growth expects a document loss in 2022, primarily as a result of losses from its portfolio holdings in Russia and Belarus, EBRD President Odile Renaud-Basso mentioned on Wednesday.
The financial institution had round $1 billion in its Russia and Belarus-focused portfolio earlier than the warfare in Ukraine, which is now “totally provisioned”, Renaud-Basso mentioned, including that compared, broader market circumstances and non-performing loans had a restricted impression on EBRD’s holdings.
“We expect a document loss, following a document revenue from the 12 months earlier than,” she mentioned in an interview with the Reuters International Markets Discussion board on the sidelines of the World Financial Discussion board’s annual assembly in Davos.
The financial institution earlier reported document investments in 2022 of about 13.1 billion euros ($14.1 billion), and expects to proceed investments focused round meals and vitality safety, Renaud-Basso mentioned.
EBRD, which operates throughout roughly 40 economies on the earth, hopes to extend investments within the Center East and Africa in 2023, notably in Egypt. It could make document investments in Tunisia.
Renaud-Basso reiterated the financial institution’s dedication to ship 3 billion euros to Ukraine by the top of this 12 months, notably to assist rebuild infrastructure. That may imply an anticipated deployment of round 1.3 billion euros in 2023, following final 12 months’s disbursement of 1.7 billion euros.
She additionally expects the financial institution’s growth in sub-Saharan Africa and Iraq, postponed because of the warfare in Ukraine, to be again on the agenda for 2023.
($1 = 0.9265 euro)
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Reporting by Divya Chowdhury in Davos and Lisa Mattackal and Nishara Pathikkal in Bengaluru; Enhancing by Paul Simao
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