UPDATE 1-UK's Chakrabarti wins second term as head of EBRD development bank

Wed May 11, 2016 1:47pm EDT
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

* Chakrabarti wins 90 pct of vote, defeating Poland's Belka

* Says wants to retain capacity in Russia

* Has said wants to halt EBRD's rapid expansion (Adds quotes, details, background)

By Marc Jones

LONDON, May 11 (Reuters) - Britain's Suma Chakrabarti won a second four-year term as head of the European Bank for Reconstruction and Development (EBRD) on Wednesday, easily defeating a challenge from Poland's central bank governor and former prime minister Marek Belka.

Chakrabarti, who won some 90 percent of shareholders' votes at the annual EBRD meeting in London, said the bank must maintain its presence in Russia, where it suspended new lending after the West imposed sanctions over the Ukraine crisis.

"We have got a huge challenge ahead of us," Chakrabarti, 57, a former British civil servant, said after his re-election.

The EBRD continues to manage a Russian loan portfolio of more than five billion euros, but maturing projects and stake sales mean this has been falling rapidly and could be gone altogether in around five years if the rate of shrinkage stays constant.

"We always review these situations but for now I think it's important that we maintain our capacity," Chakrabarti said.   Continued...