The European Bank for Reconstruction and Development (EBRD) and the Japan International Cooperation Agency (JICA) have launched a new financing facility of up to US$ 1 billion aimed at expanding local currency lending across the EBRD’s regions. The initiative was officially announced during the EBRD 2026 Annual Meeting and Business Forum in Riga.
The new arrangement, known as the Japan-EBRD Initiative for Development Acceleration and Inclusion (JIDAI) Special Fund, is designed to help businesses and public-sector entities access financing in local currencies, reducing exposure to foreign exchange risk and improving long-term financial stability.
By providing financing in local currencies, the facility is expected to strengthen economic resilience and support sustainable investment across key sectors. These include infrastructure, renewable energy, climate adaptation, water and sanitation, healthcare, digital connectivity, and financial inclusion.
EBRD officials emphasized that access to stable local currency financing is essential for encouraging investment and supporting long-term growth. The new fund will enable the Bank to expand its lending capacity while deepening local capital markets and improving access to affordable credit.
JICA highlighted that the partnership reflects a shared commitment to inclusive and sustainable development. By combining JICA’s development finance resources with the EBRD’s experience in local markets, the initiative aims to deliver long-term development impact in regions where financing needs are greatest.
The EBRD is already one of the leading providers of local currency financing among multilateral development banks. The introduction of the JIDAI Special Fund is expected to further strengthen its ability to meet rising demand and support more resilient financial systems across its countries of operation.
Overall, the initiative represents a significant step toward reducing currency risk for borrowers, improving investment conditions, and supporting sustainable economic development across emerging markets.
