New EBRD Strategy for the Slovak Republic: A Green, Resilient Economy

The Board of Directors of the European Bank for Reconstruction and Development (EBRD) has approved a new Country Strategy for the Slovak Republic, which will guide the Bank’s investments and policy engagement in the country for the period 2023-28.

A key priority of the new strategy is to advance the green transition and foster economic resilience.

The mission for a green economy transition focuses on reducing CO2 emissions and includes ambitious sustainable energy targets for 2030 and 2050, as well as improving waste management and supporting circular economy business models. Implementation of the strategy will be reviewed in 2026.

As the Slovak Republic needs to further reduce its reliance on fossil fuel imports, energy efficiency and security (including the roll-out of renewables) will be supported in line with the Green Agenda and make the country’s economy more resilient.

The Bank will continue its mission to deepen the country’s capital markets as an investor and policy engagement to provide various sources of finance to enhance economic resilience.

During the previous strategic period, the EBRD achieved several investment and policy goals in the Slovak Republic that addressed the same issues. A key aspect of this work since 2017 has been the promotion of green financing through capital markets.

For example, the EBRD invested EUR 100 million in the first minimum requirements for own funds and eligible liabilities (MREL) – EUR 80 million of Slovak banks’ eligible issuances in green bonds.

In close cooperation with the Ministry of Finance and the National Bank, the EBRD helped develop the new Covered Securities Law, which came into effect on January 1, 2018 and brought significant improvements recognized by issuers and investors. Rating agencies assigned the Slovak Republic’s first AAA rating to a covered bond scheme. The EBRD itself participated in several bond issues worth €190 million.

To increase the access of small and medium enterprises to alternative financing such as equity, the bank invested in several regional equity funds.

In total, the EBRD has invested €3 billion in the country since the start of its operations in the Slovak Republic – a milestone reached just as the new strategy was approved.