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CEB and ČSOB sign a €60 million loan to finance public services and small business in the Czech Republic
17 October 2023
Prague - The Council of Europe Development Bank (CEB) and Czechoslovak Commercial Bank (Československá obchodní banka, ČSOB) signed a €60 million framework loan agreement to provide long-term funding for the revitalisation and modernisation of public infrastructure, improving living conditions in urban and rural areas, and supporting small businesses in the Czech Republic.
The CEB loan aims to bolster ČSOB financing of the Czech public sector and social services. Most of the investments are expected in the construction and renovation of education, public administration, road, utility networks, water supply and waste management infrastructure.
In addition, CEB financing may co-finance projects together with the European Structural and Investment Funds and/or the EU Recovery and Resilience Facility.
The CEB loan will also finance micro, small and medium enterprises to part-finance eligible productive investments and working capital needs while prioritising activities in sectors such as the green economy, innovation, and research and development. This is expected to enhance competitiveness and improve employment outcomes throughout the Czech Republic. CEB and ČSOB have been cooperating successfully on promoting social investments since 2017.
The Council of Europe Development Bank (CEB) is a multilateral development bank, whose unique mission is to promote social cohesion in its 43 member states across Europe. The CEB finances investment in social sectors, including education, health and affordable housing, with a focus on the needs of vulnerable people. Borrowers include governments, local and regional authorities, public and private banks, non-profit organisations and others. As a multilateral bank with an excellent credit rating, the CEB funds itself on the international capital markets. It approves projects according to strict social, environmental and governance criteria, and provides technical assistance. In addition, the CEB receives funds from donors to complement its activities.