News
CEB approves COVID-19 project loans
17 April 2020
PARIS – Today the Council of Europe Development Bank approved by fast-track procedure seven loans totalling almost €1.7 billion for projects responding to the COVID-19 pandemic. The financing will cover increased needs in the health sector, including medical equipment and expertise, and in job creation and preservation. Since the outbreak of the pandemic, the CEB has adopted a fast-track procedure of loan approvals as part of its swift response to the crisis and in order to meet in a prompt and efficient way the needs of its member countries. The bulk of the loans are provided under the Bank’s Public Sector Financing Facility which allows for flexible use of the financing.
Czech Republic: a €300 million Public Sector Financing Facility to the Czech Republic to help mitigate the spread and consequences of COVID-19 by ensuring the availability of medical material and protective equipment, particularly for those on the frontline of defence against the pandemic. The funds will benefit the country’s more than 10 million inhabitants.
Hungary: a €175 million Public Sector Financing Facility to Hungary to support the provision of medical services and to partially finance its extraordinary expenditures resulting from the COVID-19 crisis, benefiting the country’s 10 million inhabitants.
Italy: a €300 million Public Sector Financing Facility to Italy in order to support the country’s efforts to manage the COVID-19 pandemic and ensure the health and safety of the entire population, particularly those directly affected by the pandemic.
Lithuania: a €100 million loan to the Republic of Lithuania to support the implementation of measures promptly taken to ensure that the health network and public institutions can cope with the challenges posed by COVID-19 and tackle its economic consequences. The Public Finance Facility will benefit a wide range of population groups with a particular emphasis on medical staff, staff involved in COVID-19 concerned sectors, and people seeking treatment.
Slovak Republic: a €300 million Public Sector Financing Facility to the Slovak Republic aimed at supporting its efforts to mitigate the spread and consequences of COVID-19, ensure the availability of medical services to all citizens, mitigate the economic impact of the crisis on MSMEs, and ensure the continuity of essential public services during the COVID-19 emergency. The financing provided by the CEB will benefit the country’s 5.5 million inhabitants.
Spain: a €200 million loan to Comunidad Autónoma de Madrid to support Madrid’s efforts to provide medical services to those affected by COVID-19. The funds will mostly finance medical and pharmaceutical supplies and will benefit Madrid’s 6.7 million inhabitants, including more than 1.2 million persons over 65 years old as well as other people most vulnerable to the virus.
Spain: a €300 million loan to Instituto de Crédito Oficial (ICO) to support the Spanish government’s efforts to mitigate the economic impact of the COVID-19 lockdown on MSMEs. The funds will allow ICO to provide financial support to MSMEs, which currently have limited or no access to private financing and are under financial strain due to the COVID-19 lockdown.
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 (AA+ with Fitch Ratings, outlook positive, AAA with Standard & Poor's, outlook stable and Aa1 with Moody's, 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.