London, April 9 (QNA) – The European Bank for Reconstruction and Development (EBRD) announced its intention to allocate EURO 5 billion ($5.9 billion) in 2026 to economies affected by conflict in the Middle East.

In a statement released Thursday, the EBRD said the funds will be used to support financial institutions, the corporate sector, and sustainable infrastructure.

It explained that this step comes as part of its direct response to the repercussions of the conflict, aiming to support the economies in which it operates and its clients affected by the war, as well as neighboring countries facing indirect effects as a result of the crisis.

It noted that the economic and social repercussions of the conflict have become evident in several of these economies, pointing out that they are reflected in the disruption of trade routes and the instability of energy and commodity markets, along with declining investor confidence and rising living costs.

This increases pressure on local economies, with the extent of these repercussions depending on how the situation develops in the coming period.

The EBRD affirmed its continued support for state-owned enterprises to ensure the continued provision of essential goods and services, while simultaneously working to implement long-term reforms to strengthen governance and increase the resilience of these institutions.

It also noted that its Board of Directors approved a project to support the retail sector in Lebanon as part of its current response.

The EBRD highlighted its investment record in the region, having injected more than EURO 26.5 billion into 489 projects in the Southern and Eastern Mediterranean region since commencing operations in 2012, in addition to investments exceeding EURO 23 billion in Turkiye since 2009, reflecting its significant presence in supporting economic development in the region. (QNA)