CEB and City of Reykjavík partner to improve education infrastructure, as Bank holds Joint Meeting in Iceland

Reykjavík – Governor Carlo Monticelli and Mayor of Reykjavík Einar Þorsteinsson signed today a €100 million loan to improve educational facilities. The signing ceremony took place ahead of the CEB’s 57th Joint Meeting, which opens tomorrow and is hosted by the Icelandic authorities this year, bringing together representatives from the Bank’s shareholders and top management.

The CEB’s €100 million loan to the City of Reykjavík will support major maintenance works to substantially upgrade the quality, safety, and health standards of its educational infrastructure. The renovation efforts will create modern learning spaces that support contemporary teaching methods for all children and adolescents enrolled in pre-schools and compulsory schools.

The improvements financed by the CEB loan aim to provide better access to education and a more supportive learning environment for all students. The investments will benefit almost 22,500 children, including those from migrant families, Ukrainian refugees, and families recently displaced by the volcanic activity in the town of Grindavík. The planned investments will be implemented during the budgetary period 2023-2028 for a total cost of €223 million.

“Today's signing marks a new milestone in our long-standing collaboration with the City of Reykjavík and Iceland. This €100 million loan will improve the quality and safety of educational facilities in Reykjavík, providing modern learning environments essential for our youth's development,” said Governor Carlo Monticelli.

“This agreement reflects the priorities of the majority coalition to promote the interests of the elementary school communities. CEB is a valued partner and it is important that the city has more credit options than those offered in Iceland. We are very happy that this milestone has been reached, as families with children in Reykjavík and school staff will benefit from this,” says Mayor Einar Þorsteinsson.

The CEB loan aligns with the objectives set out in the “Reykjavík Education Policy 2030 - Let the Dreams Come True” and the “Maintenance Boost Scheme for Preschools, Compulsory Schools and Recreation Centres 2022-2028”. These initiatives focus on enhancing educational facilities and fostering human capital through improved education and vocational training.

2024 marks a pivotal moment in the cooperation between Iceland and the CEB. In addition to this loan to the City of Reykjavík, two additional loans to finance volcano relief measures and upgrades to municipal infrastructure are in the pipeline for consideration.

Iceland is one of eight founding members of the CEB. Since 1956, the CEB has approved 10 projects for Iceland, totalling over €400 million in loans, including two previous loans to the City of Reykjavík.

On 6-8 June the government of Iceland is hosting the CEB’s annual Joint Meeting, a high point in the Bank’s calendar. The event is organised on a rotational bases in each of the 43 members states. This year’s Joint Meeting discussions focus on the role of the CEB in supporting its member states in disaster risk management as well as climate change and a just transition.