CEB and City of Tampere sign €60 million loan agreement for municipal investments
18 January 2019
PARIS – The Council of Europe Development Bank (CEB) signed today a €60 million framework loan agreement with the City of Tampere to finance municipal investments in public infrastructure. Signing were CEB Governor Mr Rolf Wenzel and the CEO of the Tampere City Group, Mr Juha Yli-Rajala.
Tampere is Finland’s third largest city with a growing population of almost a quarter of a million inhabitants. Local authorities have put in place a municipal investment strategy covering the period until 2025 and aimed at tackling challenges in the social sector.
The CEB loan, which follows a €60 million loan provided to the City of Tampere in 2016, will be used for the construction or renovation of infrastructure in the area of education, particularly schools and day-care facilities. It will also finance other municipal investments aimed at improving living conditions, such as community services and sports facilities.
By contributing to Tampere’s strategy “Working together for a bright future”, the funds provided by the CEB are expected to bring significant benefits to the wider local community, particularly to young families and families with children, the city’s student population, Tampere’s youth in general, and also the persons of foreign background who have arrived in recent years.
Following the signing, Governor Rolf Wenzel said: “Working with municipalities and regional authorities is an excellent way for the CEB to reach and benefit local communities. We are pleased with the cooperation between the CEB and several cities in Finland, of which the framework loan agreement signed today with Tampere is the most recent example. The funds provided, which are doubling the initial amount of financing to the city three years ago, will enable Tampere to pursue its social investment programme for the benefit of its dynamic and fast-growing population.”Finland became a CEB member in 1991. To date, CEB loans have helped to mobilise more than €3 billion worth of investments in social housing, educational and health facilities, better living conditions for disadvantaged groups, micro-, small and medium-sized enterprises (MSMEs), and municipal infrastructure throughout the country. In addition to Tampere, the CEB has signed loan agreements with several other cities in the country, including Helsinki, Vantaa, Espoo, Turku, and Kuopio.
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.