Additional €350 million from CEB and CDP for the reconstruction of the earthquake-stricken areas in central Italy
28 February 2023
The interventions will be aimed at the repair and reconstruction of private buildings for residential or productive use that were seriously damaged by the earthquakes that hit the regions of Central Italy in 2016 and 2017.
The Council of Europe Development Bank (CEB)’s loans channelled through Cassa Depositi e Prestiti (CDP) to support earthquake-affected households and businesses amount to €700 million.
An additional agreement was signed between the CEB and the Special Commissioner for Earthquake Reconstruction 2016 to ensure the monitoring and reporting of supported projects.
Rome - The commitment of the Council of Europe Development Bank (CEB) and Cassa Depositi e Prestiti (CDP) in favour of recovery and reconstruction in the territories of Abruzzo, Lazio, Marche and Umbria, which were severely affected by the earthquakes in 2016 and 2017, has been strengthened further. A new agreement for an additional €350 million in financing was signed at the Cassa's headquarters by CDP CEO Dario Scannapieco and CEB Governor Carlo Monticelli. The aim is to allocate new resources to the communities in the Apennines affected by the earthquake and to support the reconstruction of private or production buildings which were damaged.
These resources will flow into CDP's Plafond Sisma Centro Italia and will be channelled, through dedicated banks, to households and businesses in the areas affected by the earthquakes, based on the progress of the reconstruction projects that have been accepted for assistance. The repayment costs of the loans will be borne by the Italian state through a mechanism that provides for the recognition, in favour of the beneficiaries, of a tax credit that will be transferred to the dedicated banks and that they will use to offset their own tax debts. The amount of the tax credit is equal to the instalments due (principal and interest share).
Following the signing of the financing contract between CEB and CDP, the Governor of the CEB, Carlo Monticelli, and the Special Commissioner for Earthquake Reconstruction 2016, Guido Castelli, signed an agreement to ensure the monitoring and reporting of projects supported by the CEB.“With this new agreement CEB confirms its support for the most vulnerable. The Bank's commitment to stand alongside the Italian institutions in responding to emergency situations, such as those of the disastrous earthquakes that hit Central Italy in 2016-2017, has enabled thousands of people to return to their homes and resume their productive activities in areas at risk of depopulation. It has also already resulted in savings for the state of more than €30 million. This new loan will further contribute to these important objectives,” emphasised the CEB Governor Carlo Monticelli. “The agreement signed today further expands the resources that CDP makes available to the territories hit by the earthquake in 2016 and 2017. Thanks to synergies with European institutions, such as the CEB, and to its solid collaboration with the Special Commissioner, our institution has already mobilised about €3 billion in favour of households and businesses in Abruzzo, Lazio, Marche and Umbria, confirming its commitment to reconstruction, with a particular focus on improving the quality of housing and production sites. At CDP, we will continue to work relentlessly to contribute to the country's development and generate a positive impact on the territories. This is our way of looking to the future with a sense of responsibility”, said CDP CEO Dario Scannapieco.
“For earthquake-stricken areas of central Italy, the support of institutions such as CEB and CDP represents a concrete and effective step in the complex process of rebuilding homes and businesses, and is testament of the national and international proximity to the areas affected by the earthquakes in 2016. This commitment urges us to be even more timely in finding and applying the best solutions to fully implement the reconstruction, including through procedures that can simplify and improve the availability of resources on the ground. The quality of the reconstructed buildings will also depend on the financial capacity to support the necessary innovations to ensure the highest levels of seismic safety and energy efficiency”, said Guido Castelli, Special Commissioner for Earthquake Reconstruction 2016.
More information on CDP
Cassa Depositi e Prestiti (CDP) is the National Promotion Bank that has supported the Italian economy since 1850. Through its activities, it is committed to accelerating the country's industrial and infrastructure development in order to contribute to its economic and social growth. CDP places the sustainable development of local areas at the centre of its activities, as well as growth and innovation, including internationally, of Italian companies. It is a partner of local authorities, with financing and advisory activities, for the construction of infrastructure and the improvement of public utility services. It is also active in international cooperation for the implementation of projects in developing countries and emerging markets. CDP finances itself with entirely private resources, through the issuance of postal bonds and other issuance on the domestic and international financial markets.
Set up in 1956, the CEB (Council of Europe Development Bank) has 42 member states. Twenty-two Central, Eastern and South Eastern European countries, forming the Bank's target countries, are listed among the member states. As a major instrument of the policy of solidarity in Europe, the Bank finances social projects by making available resources raised in conditions reflecting the quality of its rating (Aa1 with Moody's, on review for upgrade, AAA with Standard & Poor's, outlook stable, AA+ with Fitch Ratings, outlook positive and AAA* with Scope Ratings, outlook stable). It thus grants loans to its member states, and to financial institutions and local authorities in its member states for the financing of projects in the social sector, in accordance with its Articles of Agreement.