1

The EBRD and its Legal Transition Programme

Public Procurement Seminar, Ankara

11 October 201011 October 2010

Michel Michel NussbaumerNussbaumerHead of Legal Transition and Knowledge Management TeamHead of Legal Transition and Knowledge Management Team

2

What is the EBRD?

Founded in 1991

Financial institution with €30 billion capital

Operates in 29 countries in Central and Eastern Europe

Multinational shareholding: 60 countries, EIB and EU

More than 1000 regular staff from 52 countries, More than 250 locally hired staff in 33 resident offices

Largest investor in the region

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+ Mongolia(July 2006)

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What are the EBRD’s objectives?

To promote transition to market economies by investing mainly in the private sector

To mobilise significant foreign direct investment

To support privatisation, restructuring and better municipal services to improve people’s lives

To encourage environmentally sound and sustainable development

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Attracting co-investors triples EBRD’s investment

Resources mobilised€78.6 billion

EBRD financing €36.9 billion32%

68%

Total project value €115.5 billion

Unaudited December 2007

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EBRD Capital Structure

Shareholder breakdown

Others11%

USA 10%

Japan 9%

EBRD region (excluding EU members)***

7%

EU-27 countries**

63%

Unaudited as at 30 June 2010

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Project portfolio (cumulative commitments)

38.732.9

11.88.0

0

10

20

30

40

50Private sector State sector

2,880 signed projects Disbursements

€ billion

Unaudited as at 31 March 2010

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Law reform and economic transitionLaw reform and economic transition

Source: EBRD Transition Report 2009, Table 1.1; EBRD Composite Country Law Index, Jul 2010

Romania

Latvia Bulgaria

Georgia

Turkmenistan

Tajikistan

UzbekistanBelarus

Armenia

Estonia

Azerbaijan

Montenegro

Bosnia & Herz

AlbaniaRussia

Moldova

Croatia

KazahkstanSerbia

Krygyz Rep

TurkeyMongolia

UkraineFYR

Macedonia

Poland

Hungary

Slovak RepLithuania

1

2

3

4

State of core commercial and f inancial law s

Stat

e of

Eco

nom

ic T

rans

ition

Slovenia

Low Performing High Performing

99

The EBRD Legal Transition Programme (LTP)

The development of sound legal rules and the establishment of the legal institutions and culture on which a vibrant market-oriented economy depends.

1010

LTP works on legal reform in sectors relevant to investors

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Insolvency Sector Assessment 2009

Very high compliance (1 country)

High compliance(9 countries)

Medium compliance (11 countries)

Low compliance(5 countries)

Very low compliance (4 countries)

Montenegro Albania

Bosnia and Herzegovina

Bulgaria

Croatia

Czech Republic

Estonia

FYR Macedonia

Romania

Slovenia

Armenia

Belarus

Hungry

Kyrgyz Republic

Moldova

Mongolia

Poland

Russian Federation

Serbia

Slovak Republic

Turkey

Azerbaijan

Georgia

Kazakhstan

Lithuania

Ukraine

Latvia

Tajikistan

Turkmenistan

Uzbekistan

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LTP assessments pinpoint strengths and weaknesses in laws:

0

20

40

60

80

100Commencement of proceedings

Treatment of estate assets

Treatment of creditorsReorganisation processes

Terminal/liquidation processes

TURKEY

For example, Insolvency Sector Assessment (2009)

Source: EBRD Insolvency Sector Assessment 2009100 represents full approximation with international standards

LITHUANIA

0

20

40

60

80

100Commencement of proceedings

Treatment of estate assets

Treatment of creditorsReorganisation processes

Terminal/liquidation processes

LITHUANIA

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LTP has completed legal reform projects in many countries, e.g.:

Slovak secured transactions (2000-2006)– Assisted Slovak government with comprehensive reform of

secured transactions regime (pledge and mortgage) based on best international practice

Russia corporate governance code (2000-2002)– Assisted in development of corporate governance code, endorsed

by the Russian Government

Moldova Mortgage Law (2008)– Sponsored new legislation act to support mortgage activities

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LTP is currently working on legal reform projects, e.g.:

Serbia Concession Law Reform

Kyrgyz judicial capacity building

Russia Pledge Law Reform

Albania Public Procurement Law

Tajikistan Telecoms

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Outreach – Legal Transition Programme web pages

www.ebrd.com/pages/sector/legal

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Outreach – Law in transition

Available in English and in Russian

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Law in transition, 2009

Country Law Assessment

Policy dialogue– Pledge law

– Concessions law

– Public Procurement

LTP first steps in Turkey

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The EBRD and its Legal Transition Programme

Public Procurement Seminar, Ankara

11 October 201011 October 2010

Michel Michel NussbaumerNussbaumerHead of Legal Transition and Knowledge Management TeamHead of Legal Transition and Knowledge Management Team