This paper sketches the history of the European Bank for Reconstruction and Development (EBRD). It describes the bank’s objectives and structure, and flags some of the emerging issues for developing countries (LDCs). Of particular concern for LDCs is the question of whether the bank will divert resources from them to Eastern Europe. There are also questions about the balance between member control and managerial freedom; about the need for public financing of private ventures; and about the consistency of the bank’s objectives with the financial terms it will be able to offer.