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“We can make a real difference”

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Varel Freeman, EBRD First Vice President

EBRD First Vice President Varel Freeman comments on the Bank’s increased business volume

The EBRD Board of Directors approved management’s proposed increase in the ceiling for 2009’s annual business volume (ABV) from €7.5 to €8 billion. This represents a 52 per cent increase over last year’s actual business volume of €5.2 billion.

Why has the ceiling been increased and what does this mean in terms of the impact the Bank can have in the current financial crisis?

A number of important factors led to the decision to seek an increase in ABV. There has been and there will continue to be strong demand for EBRD engagement and investment across the region. In these times of crisis, the Bank has shown itself to be highly additional, able to deliver projects with high transition impact and in a position to attract and select quality investment opportunities. Our strong response in the first half of the year to the financial crisis in the region we operate gave the Board the confidence that stretching resources in times of trouble is good and productive for the Bank and the countries of operations. I view the Board’s decision as a big vote of confidence in the staff and for the Bank.

What kind of a message does this move send to the countries of the region and to our clients?

The clear message is that the EBRD is open for business no matter what the vagaries of the business climate. We have responded strongly to the challenges of the financial and economic crisis. The message to clients is positive: we will do our maximum to help and to address the issues at hand. There is of course a message beyond the financial – this is a Bank committed to the core principles of its mission, a Bank committed to transition and to positive change. We have added resources beyond €2 billion – adding staff members where necessary and effective. We have expanded our policy dialogue, engaging in important discussions on the financial sector, security, energy efficiency and climate change. We have had a tremendous impact on potential opportunities that were previously off limits. Where we have more resources, we can make the effort and achieve a lot. In a year of challenge, we have shown that we can make a real difference.

The dramatic increase in business volume must be quite a challenge. What has it meant for bankers and what have been the practical ramifications of this increase for the way you work?

This has indeed been a challenge. There is no question that bankers have been working longer hours and pushing themselves to achieve more – not just the bankers but the supporting units which have been called upon to manage the increase and to deal with the effects of the crisis on our portfolio. Colleagues across the EBRD have been working harder to support our efforts. All of this reflects the professionalism of staff and their commitment to the mission. It has been an amazing and wonderful response and we’ve been able to work “smarter” and to develop greater collaboration between departments. Over the past year, we have developed new products and new approaches that fit in with a challenging economic situation in each of the countries where the EBRD operates.

Has an increase in business volume had an impact on how you manage the project pipeline?

There are more projects and greater volume across every sector in which we work. Never before have there been so many opportunities. We have had to ensure diversity and order our priorities. The results have been gratifying and I am pleased that transition impact has been very high. Indeed in some areas, we have had a huge impact. Yet the EBRD is not about “grandstanding”. It’s about getting things done, about making an impact on transition and benefiting the people in the countries of operations. Our focus is on mission, impact and accomplishment rather than what’s in the newspaper headlines.

As the crisis unfolds across the region what, from your point of view, what can the increase mean in terms of the Bank's activities over the next few years? What will the EBRD's role be when economies begin to grow again?

We must continue to focus on the fundamentals. We can all be hopeful, but a true recovery may be far off – and recovery may unfold in a way far different than projected. Thus, again, to succeed we must remain true to mission, focus on transition and additionality and continue our efforts in areas such as energy efficiency and climate change, small business. As we move forward, we’ll need to be creative and responsive.

By Larry Sherwin, Deputy Director of Communications
15 September 2009