PUBLIC

RESOLUTION NO.260

AMENDMENT TO ARTICLE 12.1 OF THE AGREEMENT ESTABLISHING

TH E EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT TO

REMOVE THE STATUTORY CAPITAL LIMITATION ON ORDINARY

OPERATIONS

THE BOARD OF GOVERNORS,

Recognising the essential role of Multilateral Development Banks (MDBs) in

addressing multiple pressing global challenges;

Noting the significant changes in capital management practices in the financial

sector since the Agreement entered into force on 28 March 1991;

Wishing to enable the optimal use of the Bank’s capital capacity to support

the Bank in achieving the maximum potential impact in its recipient countries;

Welcoming the wide ranging recommendations of the G20 Independent Review

of Capital Adequacy Frameworks and the careful consideration accorded to

them by the Bank, including specifically the recommendation to modernise

MDBs’ approach to managing capital adequacy by relocating specific leverage

limits from MDB statutes to MDB capital adequacy frameworks, in a

coordinated manner among MDBs;

Having considered and being in agreement with the report of the Board of

Directors “Amendment of the Article 12.1 to the Agreement Establishing the

European Bank for Reconstruction and Development in order to remove the

statutory capital limitation on ordinary operations” and its recommendation to

approve an amendment of Article 12.1 of the Agreement to remove the

statutory capital limitation on ordinary operations; and

On the understanding that the Board of Directors will maintain an

appropriate nominal leverage limit on operations, set against relevant capital

metrics, within the Bank’s capital adequacy framework, as part of its

responsibility to protect the financial soundness and sustainability of the

Bank.

PUBLIC

RESOLVES THAT:

1. Article 12.1 of the Agreement shall be amended by deleting its existing

text and introducing a new text as follows:

"1. The Board of Directors shall establish and maintain appropriate

limits with respect to capital adequacy metrics, in order to protect the

financial soundness and sustainability of theBank."

2. Members of the Bank shall be asked whether they accept the said

amendment by (a) executing and depositing with the Bank an instrument

stating that such member has accepted the said amendment in accordance

with its law and (b) furnishing evidence, in form and substance satisfactory

to the Bank, that the amendment has been accepted and the instrument of

acceptance has been executed and deposited in accordance with the law of

that member.

3. The said amendment shall enter into force three (3) months after the date on

which the Bank has formally confirmed to its members that the

requirements for accepting the said amendment, as provided for in Article

56 of the Agreement, have been met.

(Adopted 18 May 2023)

PUBLIC