How does the EBRD differ from a commercial bank?
The EBRD’s main advantages, compared with private commercial banks, lie in its willingness and ability to bear risk, as a result of its shareholder base. This allows us to act at the frontier of commercial possibilities and be an effective ‘demonstrator’. The Bank also shares the project risk by acting with other private sector entities, such as commercial banks and investment funds, as well as multilateral lenders and national export credit agencies. The EBRD assists companies that have difficulty in securing financing: as such, it complements the efforts of other lenders. While its structure is unlike that of a commercial bank, the EBRD has a similar approach to dealing with projects. A project has to be commercially viable to be considered. The EBRD prices its products on a commercial basis. It does not issue guarantees for export credits or provide retail banking services. With its AAA credit rating, the Bank is able to raise funds at the finest rates from international capital mar
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