DUSHANBE, February 9, 2009, Asia-Plus — The Eurasian Development Bank will finance investment projects of the Eurasian Economic Community (EAEC) within the frames of the Anticrisis Fund, according to EDB’s website.
In line with EAEC Interstate Council’s decision, the funds of the Community’s Anticrisis Fund will be managed by the Fund’s Board and the Eurasian Development Bank (EDB). In addition, the EDB will be authorized to finance interstate projects using money of the Anticrisis Fund.
We will recall that leaders of member nations of the EAEC) agreed to establish the Anticrisis Fund during a summit in Moscow on February 4. The fund of 10 billion US dollars is dedicated to become an effective instrument of countering negative phenomena in the economy and finances of the member states. Russia will contribute 7.5 billion US dollars to the anticrisis fund and share of Kazakhstan will amount to 1 billion US dollars, while other member nations of the Community – Belarus, Kyrgyzstan and Tajikistan – are to determine their contributions to the fund within a month. The Fund’s Board members will include finance ministers of the EAEC states.
The EDB Board Chairman Igor Finogenov considers that establishment of the Anticrisis Fund is an efficient and timely measure of national economies the EAEC states to counter the global financial crisis.
The Eurasian Development Bank (EDB) is based in Almaty. Kazakhstan and has a branch in St. Petersburg, Russia”s second city, and offices in the two countries” capitals, Moscow and Astana. It was established to help boost investment across the former Soviet Union. Russia and Kazakhstan signed an agreement to create the bank in Astana on January 12, 2006. The bank has authorized capital of $1.5 billion, 33% of which will belong to Kazakhstan and the remainder to Russia.
In December 2008, the EDB Board considered and approved applications by Tajikistan, Belarus and Armenia for joining the bank. In accordance with the admission procedure, the Board approved the increasing of the charter capital of the EDB by additional issuance of shares, which will be allocated to new members pro rata their contributions. As a result of the additional issuance, the banks authorized capital will be increase by $15.6 million due to fees of new members — Tajikistan, Belarus and Armenia.
