The European Bank for Reconstruction and Development (EBRD) invested a record €7.9bn in Eastern Europe in 2009 – a 55% increase on the year before.

The bank is preparing to support Eastern Europe through the recovery period with further increases in financing likely in the coming years.

The largest share of last year’s investments was dedicated to the financial sector as the bank sought to bolster banks across the region and help them maintain their lending flows, especially to small businesses.

The EBRD provided a strong flow of financing to the corporate sector directly and invested heavily in energy and infrastructure projects. Investments in sustainable energy projects, promoting energy efficiency and clean energy played a significant role.

As anticipated, the EBRD reported a net loss of €746mn in 2009, compared with a loss of €602mn a year earlier.

The bank remains very well capitalised, but in order to facilitate investments at this higher level over the coming years, it has sought shareholder approval for an increase in capital.

The bank expects investments in 2010 to be slightly higher than last year’s record level. With the capital increase that is under consideration, the EBRD would be able to continue to invest at similar enhanced levels during the coming five years.

Looking ahead to the coming year, vice-president for finance, Manfred Schepers, comments: “The global economic slowdown will continue to affect the region where the EBRD invests. The recovery will be slow and varied across the region and private investment flows will continue to be scarce. As in 2009, the EBRD will stand ready to support Eastern Europe during these difficult times.”