ZAGREB (AFP) - The European Bank for Reconstruction and Development said on Saturday it had increased its 2010 growth forecasts for Eastern Europe from 3.3 to 3.7 percent but warned recovery remains fragile. The EBRDs latest economic outlook has revised up its average growth forecasts for the region to 3.7 percent in 2010 from the 3.3 percent predicted in January, a statement said. It warned that the countries of eastern Europe face an uncertain period of recovery out of the global economic crisis, with increasing differences in the pace of growth across countries, and new risks arising from fiscal pressures and financial volatility in western Europe. The bank, holding its annual meeting in the Croatian capital, said that the revision reflected upgrades in some of the largest economies in the region stretching from central Europe to central Asia which includes Russia, Turkey, Poland, Hungary and Ukraine. Meanwhile, the banks growth forecasts for some other countries, such as European Union members Bulgaria and Romania, have been revised down. Most countries are continuing to experience a slow recovery, and some face further output declines, such as the three Baltic states and Bulgaria, the statement said. EBRD chief economist Erik Berglof warned that the region has gone through a deeper recession and slower recovery than other emerging markets regions. Berglof told journalists that economic risks were shifting from domestic to external which he said have risen dramatically with the Greek debt crisis. The crisis is affecting mainly South-Eastern European countries in which Greek banks are strongly represented, he said. For 2011 the bank was slightly more optimistic forecasting a 4.0 percent growth compared with a 3.8 percent forecast in January. However, it would still be rather weak compared with pre-crisis growth figures. The EBRD shareholders agreed here on Friday on a 50 percent capital hike, lifting the institutions resources to 30 billion euros (38 billion dollars), to help the region. The increase should allow the bank to invest between 8.5 and 9.0 billion euros each year between 2011 and 2015 instead of the currently available 5.0 to 6.0 billion euros. The EBRD, which was created in 1991 to help former communist nations in their transition to market economies, has stepped up its activities to aid eastern European countries hit hard by the global recession. The bank operates in 29 countries and usually invests in private enterprises together with commercial partners. Meanwhile, EBRD president Thomas Mirow said the bank was to review a demand by Egypt, one of its founding shareholders, to enter in its operational zone. What Ive said here to the board of governors is that they deserve a serious consideration, Mirow told journalists. However, he declined to elaborate on whether the demand was likely to be approved. We will need to make an assessment of any possible step and then put this on the table for discussion ... I made a commitment in procedural terms but made no commitment in substantial terms, he said. In 2008 Turkey became the first non former communist country in which the EBRD started to invest.