Execs yet to decide on investing after EBRD chief’s meet

“They are on wait and watch mode on investment opportunities,” one of the two people cited above said.

Basso, who assumed office as the first woman to chief of the EBRD on 19 July, met with Indian business leaders in New Delhi, to discuss investment opportunities in the countries where the bank operates.

“However, the Indian businesses did not make any firm investment commitments,” a second person said. “The situation in Ukraine is a concern for fresh investments in the region,” he said.

The EBRD had outlined investment opportunities in multiple countries where it operates, such as Ukraine and central European and Baltic states, eastern and south eastern European countries, Central Asia, South and Eastern Mediterranean regions as well as Africa.

These regions provide huge opportunities for Indian firms to diversify, as they are scouting for new markets, Renaud-Basso had said in an interview.

A key challenge for MDBs is to get private capital as the risk to return ratio is often not feasible.

MDBS need to increase annual spending by $3 trillion by 2030, including $1.8 trillion for additional climate action and $1.2 trillion for achieving sustainable development goals according to recommendations of a G20 committee on MDBs headed by N.K. Singh and Lawrence Summers.

“The purpose of the meetings in New Delhi was not to get firm commitments from the Indian industry. It was to enhance their understanding of the bank’s priorities and of investment opportunities in our countries of operations, with the idea to lay the ground for potential future co-investments,” an EBRD spokesperson said.

“In that sense the visit was successful because of the real interests shown by many companies (that) she met in Delhi, and the potential for follow-up by our bankers,” he added.

Updated: 24 Jul 2023, 11:58 PM IST