Eurasian Integration Yearbook 2012

Ella Baybikova. “Multilateral and Regional Development Banks in Northernand Central Eurasia: Overview of Activities in 2011”2011: Data and Reviewsaffirmed EDB’s long-term Issuer Default Rating (IDR) at “BBB” and upgraded itsshort-term IDR to “F2” from “F3”. In addition, Standard & Poor’s published itsnew ratings for the EDB, affirming the Bank’s current ratings at BBB (long-term)and A-3 (short-term) with stable outlook, which reflects that on the RussianFederation. According to S&P report, the current ratings confirm the Bank’sstable capital position and strong shareholder support.In June 2011, the EDB launched the Centre for Integration Studies aimed atconducting the research work and drafting reports and recommendations tothe governments of the EDB member states on the issues relating to regionaleconomic integration. The Centre’s research priorities include trade, economicand corporate integration; foreign exchange and financial integration; theoreticalcomprehension of the Eurasian integration.Moreover, EDB expanded its membership as the EDB Council unanimouslyapproved accession of a new member to the Bank, Kyrgyzstan, on June 27,2011.On October 13, 2011 the EDB held its 6th International Conference, CustomsUnion and EurAsEC’s Single Economic Space: Prospects for Further Integration.The EDB’s annual conferences on issues of Eurasian integration traditionallygather heads of state administration bodies of the EDB member states, leadingresearchers, experts and specialists from the EurAsEC and the CIS member statesand foreign countries, as well as representatives of mass media. The participantsof the conference focused on the best practices of economic integration inthe EurAsEC and CIS member states, a search for new ways of multilateralcooperation, evaluation of the prospects for the expansion of the Customs Unionand formation of the Eurasian Single Economic Space, the EurAsEC Anti-CrisisFund activities and coordination of joint anti-crisis strategies in the region.In addition, the EDB took part in its first ever transaction arranging one-yearsyndicated Islamic finance for Russia’s AK BARS Bank. The syndicated facilitytotalled $60 million, including the EDB’s share of $20 million. The EDB actedas a mandated lead arranger for the project. The transaction was arranged withthe participation of Citibank N.A., London, and the Islamic Corporation for theDevelopment of the Private Sector as joint lead arrangers and bookrunners. Thespecifics of Islamic finance are that it must be consistent with Sharia laws, inaccordance with which money cannot and should not be made out of money.In particular, this principle prohibits interest-bearing loans. For this reason,the transaction was structured in accordance with the Murabaha Agreement,a product of Islamic finance that provides for the purchase and sale of Shariaconsistentgoods.On December 21, 2011 the Bank’s Council revised the EDB Strategy for2011-2013 to include new sections on country priorities and interaction withinternational organisations.Eurasian Development Bank325