News

Meeting of the Governing Board: Approval of the 2011 accounts

30 March 2012

PARIS - The Governing Board today approved the accounts of the Council of Europe Development Bank (CEB) for the financial year 2011. The report of the Governor, Mr. Rolf WENZEL, will be published shortly.

In a challenging environment, the CEB's net profit decreased by 8.2% in relation to 2010 to reach € 106 million. However, when excluding an exceptional profit of € 16.1 million realised in 2010 due to the final settlement of a legal case with a paying agent, the net profit rose by 6.6%. This profit has been allocated for an amount of € 105 million to the reserves and for € 1 million to the Selective Trust Account, the Bank’s "social dividend" that enables the granting of donations and interest rate subsidies, notably in favour of projects corresponding to high priority social objectives in eligible Central, Eastern and South Eastern European countries.

During 2011, 34 new projects were approved for a total of € 2.1 billion, with 61% in favour of the target group countries. The total amount is distributed across 3 sectoral lines of action, with 56% in favour of strengthening social integration, 22% for environmental management and 22% in support of public infrastructure with a social vocation. The overall volume of disbursements for the year remained stable at almost € 1.9 billion. At end 2011, the loans outstanding amounted to € 12 billion and continued to show a sound risk profile, with investment grade rated counterparties representing 72% of the outstanding.

In all, the activity objectives fixed in 2011, the second year of the Medium-Term Development Plan for 2010-2014, were met. Over the past 5 years, more than € 11 billion worth of projects have been approved and more than € 8 billion disbursed, of which 62% have been in favour of the target group countries in Central, Eastern and South Eastern Europe.

The global financial and economic crisis has had major impacts in the Bank’s Member states. The CEB maintained a rigorous risk management for its funding activities as well as for its loans, leading to a confortable financial soundness and an excellent reputation on the financial markets. Therefore, the CEB, as the other MDBs, has shown flexibility and insured its unique mandate as an institution of social vocation, as well as by a reinforcement of the partnership with the European Union, major international financial institutions and the Council of Europe. Furthermore, the 6th capital increase which became effective on 31 December 2011 will enable the CEB to mobilise enhanced means of action in favour of social cohesion in Europe, in particular in its least advantaged Member States.Key figures 2011