EBRD and Société Générale support economies in eastern Europe

The EBRD and Société Générale are teaming up to boost lending to the real economies of eastern Europe, in a direct response to the impact of the global economic crisis, said EBRD in a press release.rnrnThe EBRD is planning to make investments of around €400 million via loans to several eastern European subsidiaries of the French banking group, which is particularly active in that region.rnrnThe EBRD investment is part of a joint pledge by the EBRD, the World Bank Group and the European Investment Bank (EIB) to provide over €24 billion in support of the banking sectors in the region and to fund lending to businesses hit by the global crisis.rnThe joint IFI Action Plan acknowledges that IFIs, central banks and parent banks are the only new sources of funding to eastern European financial institutions at this time of crisis. Société Générale has made clear its commitment to the region.rnrnThe majority of the EBRD funding to the subsidiaries is for SME lending with the main aim of supporting this sector via loans to Société Générale units that are of systemic importance in their countries and which have SME sector expertise.rnrn“Société Générale is a long-standing partner of the EBRD with a strong commitment to eastern Europe. We are working together to make sure there is a continued flow of lending to the economies of the EBRD region at this time of continued crisis,” said EBRD President Thomas Mirow.rnrn”This joint initiative, which highlights the long-standing relationship between EBRD and Société Générale Group, will help address the current challenges faced by economies in Central and Eastern Europe, as it will increase Société Générale’s capacity to serve and accompany its clients in the region,” said Frédéric Oudéa, Chairman and CEO of Société Générale.rnrnIn addition to the new funding provided under the Joint IFI Action Plan, the initiative has been a platform for a broad response to the crisis in eastern Europe involving the IFIs, the European Commission, home and host country regulators as well as the major western banking groups active in eastern Europe.rnrnIts aim has been to mount a collective response to the crisis that keeps the immediate flow of credits running to eastern European economies but also lays the ground for continued engagement in the region by the major banking groups.rnrnThe EBRD expects to invest a total of over €3 billion in support of the financial sector this year, focused on systemically important financial institutions and including other joint initiatives with major banking groups active in the region.rnrnSociété Générale is one of the largest financial services groups in the euro-zone. The Group employs 163,000 people worldwide in three key businesses: rnrnRetail Banking & Financial Services: Société Générale serves more than 30 million individual customers worldwide. rnGlobal Investment Management & Services: Société Générale is one of the largest banks in the euro-zone in terms of assets under custody (EUR 2 762 billion, March 2009) and under management (EUR 332 billion, March 2009). rnrnCorporate & Investment Banking: Société Générale tailors solutions for its clients across sectors by capitalising on its worldwide expertise in investment banking, global finance, and global markets. rnrnSociété Générale is included in 3 socially-responsible investment indexes: FTSE4Good, ASPI and Ethibel.rnwww.societegenerale.com rn