The social development bank for Europe


Bank Ochrony Środowiska and the CEB sign a € 50 million loan agreement for the financing of public sector social investments

17 March 2008

WARSAW - Today, in Warsaw, Bank Ochrony Środowiska and the CEB signed a € 50 million loan to co-finance social investments undertaken by local and regional authorities and related entities located throughout Poland. The Framework Loan Agreement was signed by Stanisław Kostrzewski and Małgorzata Dusza, respectively Vice President of the Board and Director on behalf of Bank Ochrony Środowiska, and by Imre Tarafás, Vice-Governor, on behalf of the CEB.

CEB funds under the loan agreement will help mainly small and mid-sized public authorities to gain better access to attractive funding in order to facilitate the construction and modernization of quality infrastructure forming immediate part of municipal inhabitants' daily life. Eligible investments under the loan will include overall urban and rural infrastructure contributing to the improvement of living conditions, environmental and educational facilities, as well as well as measures for the protection and upgrade of cultural and historical heritage.

In line with CEB's intervention policy, the objective of the loan is to facilitate access to credit for the upgrade of local and regional infrastructure with the aim to strengthen social cohesion in the country and to reduce the gap with more developed economies of the EU.

The project is CEB’s second operation with Bank Ochrony Środowiska. After having successfully implemented a first € 50 million loan, this new project encompasses an extended range of sectors of intervention. Bank Ochrony Środowiska plays a major role in the financing of environmentally-related and other public infrastructure investments in Poland.

Since Poland became a member state of the CEB in 1998, loans approved in the country amount to around € 1.4 billion for 20 projects, of which around 50% with intermediary financial institutions, including leasing companies.