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CEB and Cassa depositi e prestiti sign €350 million loan agreement to support Italy’s earthquake-stricken areas

12 January 2018

ROME – The Vice-Governor for Financial Strategy of the Council of Europe Development Bank (CEB), Mr Carlo Monticelli, and the Chief Executive Officer of Cassa depositi e prestiti (CDP), Mr Fabio Gallia, signed today a €350 million loan agreement to support reconstruction projects in central Italy areas struck by devastating earthquakes in 2016 and 2017.

Fabio Gallia and Carlo Monticelli
Fabio Gallia and Carlo Monticelli

The powerful earthquakes that hit the Central Italian regions of Abruzzo, Lazio, Marche and Umbria between August 2016 and January 2017 killed 299 persons, left another 40 thousand persons homeless and caused considerable damage to over 60 thousand dwellings in an area spanning 80 thousand km2. 

The funds provided by the CEB will contribute to ongoing reconstruction efforts. They will be channelled through financial intermediaries under CDP’s “Plafond Sisma Centro Italia” APEX facility to individuals and companies that suffered damage, in order to finance repair, restoration and reconstruction work. 

The agreement was signed in the presence of Italy’s Minister of Economy and Finance, Mr Pier Carlo Padoan, and the Extraordinary Commissioner for Reconstruction, Ms Paola De Micheli, at the Ministry of Economy and Finance in Rome. 

Fabio Gallia, Pier Carlo Padoan, Paola De Micheli and Carlo Monticelli
Fabio Gallia, Pier Carlo Padoan, Paola De Micheli and Carlo Monticelli

“This loan reaffirms the CEB’s firm commitment to supporting vulnerable people in need,” said CEB Vice-Governor Monticelli. “Providing aid to the victims of natural disasters and responding in an effective way to emergency situations is at the heart of the CEB’s social mandate and in line with the Bank’s activity as an instrument of European solidarity. Working with CDP, a valuable CEB partner in Italy, will ensure that the funds provided by the Bank will reach thousands of earthquake victims in remote areas of central Italy, helping those affected to return to normality as soon as possible. We, at the CEB, look forward to continuing our excellent cooperation with CDP and the Italian Ministry of Economy and Finance in the future.” 

Cassa depositi e prestiti Chief Executive Officer Gallia stressed: “With the agreement signed today, CDP strengthens its commitment to helping families and businesses from Central Italy hurt by the earthquakes. We’ve allocated around €5 billion for the reconstruction of damaged buildings and guarantee more financial flexibility for the companies, allowing for the delay of tax payments. The agreement, developed in close collaboration with the Italian Ministry of Economy and Finance, reinforces the efficiency of these initiatives, by taking advantage of sharing national and European resources. An initiative in the context of growing collaboration with CEB in the development of CDP’s support of social economy.” 

With this agreement, the CEB and CDP are strengthening their cooperation aimed at supporting social development projects in Italy. In 2016, the Bank approved a €150 million loan in support of CDP’s APEX facility “Plafond Beni Strumentali” for MSME productive asset financing. 

Cassa depositi e prestiti (CDP) is the National Promotional Institution that has supported the Italian economy since 1850. It finances public investments, nurtures international cooperation and is the catalyst for the country’s infrastructure growth. It backs Italian enterprises, helping them innovate and grow, while fostering their exports and international expansion. As the primary operator in social and affordable housing, CDP contributes to the growth of the Italian real estate sector and promotes urban transformation. CDP’s important stimulative role in Italy’s economy is evident in its 2016-2020 Business Plan. During this five-year period, CDP will inject €160 billion, plus over €100 billion through public and private funds, into the economy to help drive Italian growth. More info: https://en.cdp.it

Set up in 1956, the CEB (Council of Europe Development Bank) has 41 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, outlook stable, AA+ with Standard & Poor's, outlook positive and AA+ with Fitch 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.

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