ArmInfo.The Eurasian Development Bank (EDB) announced its financial results for 2020 in accordance with International Financial Reporting Standards (IFRS). The key outcome in the reporting period was a steady growth in the Bank's assets and operations in the EAEU market, the press service of the bank informs.
As of 31 December 2020, the EDB assets totalled US $5.6 billion, up US $439 million or 8.5% year-on-year. The Bank expanded its balance-sheet project portfolio to US $3.0 billion, a year-on-year increase of US $127 million. Loans to customers amounted to US $2.1 billion, up US $139 million. Equity grew by US $32 million to US $1.9 billion. The reserve fund as of 31 December 2020 increased by US $34 million (+30.9%) to US $146 million.
"In 2020, despite the overall downturn in economies, the Bank signed 18 new project agreements for a total of US $1.336 billion. Deserving of special mention are the projects relating to the EDB's ongoing development of the Europe-Western China transport corridor. These include a RUB 6 billion financing for the construction and operation of certain sections of the Western High-Speed Diameter road in St. Petersburg, and the financing of the Big Almaty Ring Road (BAKAD), for which the EDB was awarded the prestigious PFI Awards for the transport deal of the year in Europe," said Nikolai Podguzov, Chairman of the EDB Management Board. "The EBD's net income in 2020 was US $32.6 million, which is in line with its annual budget target. In 2020, the EDB allocated US $15.9 million net to expected credit loss provisions, which is US $9.7 million more than in 2019. The provisions were increased because of the COVID-19 pandemic's impact on business activity. The expected credit loss provisions accounted for 2.8 per cent of the balance-sheet project portfolio (2.4 per cent in 2019), which demonstrates the high credit quality of the EDB's loan portfolio," noted Nikolai Podguzov. To assess macroeconomic effects on financial performance, the Bank regularly analyses and forecasts the economic situation in its member states using an integrated system of models that produces a consistent forecast of key macroeconomic indicators. The EDB's annual financial statements as of 31 December 2020 were audited by Deloitte.
The Eurasian Development Bank (EDB) is an international financial institution promoting integration and development in its member countries - Armenia, Belarus, Kazakhstan, the Kyrgyz Republic, Russia, and Tajikistan. The EDB's charter capital totals US $7 billion. The Bank was established in January 2006 by Russia and Kazakhstan and is headquartered in Almaty. Transport infrastructure, energy, chemical, mining, and mechanical engineering projects with a high integration effect account for the main part of the EDB's portfolio.
