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CEB approves financing for social projects worth over € 1 billion

25 January 2019

PARIS – During its first meeting for 2019 held today, the Administrative Council of the Council of Europe Development Bank (CEB) made a strong start to the new year by approving thirteen loans worth almost € 1.1 billion. These will finance a wide range of projects with a high social impact in a number of countries across Europe.

Belgium: a € 300 million loan to the Communauté française de Belgique to finance investments in the education sector, in particular the construction of new facilities and the modernisation of existing ones, with emphasis on energy efficiency improvements.  

Bosnia and Herzegovina: a € 5 million loan to Mikrofin Microcredit Company (MCC), which specialises in agriculture finance, to provide financing to micro-enterprises for their productive investments. The funds provided by the CEB are expected to benefit at least 3,800 micro-businesses and farms. 

Cyprus: a € 40 million loan to the Government to finance two water delivery pipelines and related facilities. The loan will help the country meet its current and future needs in terms of drinking water, and will benefit about 42% of the country’s population, including the 400,000 residents of the capital Nicosia as well as residents of the Famagusta area. 

Czech Republic: a € 35 million loan to Brno Waterworks and Sewerage to support the city’s long-term investment for the reconstruction and expansion of the waste water treatment plant sewage line. The aim of the project is to dry all sewage produced by the plant and upgrade its technology to increase energy efficiency.

Finland: a € 50 million loan to the City of Turku, extending the financing approved in 2018. The CEB loan will finance Turku’s investments in municipal infrastructure, including the construction of new facilities and the renovation of existing ones for the benefit of the city’s fast-growing population.

Germany: a € 110 million loan to wbg Nürnberg GmbH Immobilienunternehmen, the leading public real estate company in Nuremberg, to increase the number of social housing units available for low-income persons through the construction of new units and the renovation of existing ones.

Italy: a € 70 million loan to the Region of Liguria to support investments aimed at improving public infrastructure and administrative services and enhancing urban and rural safety. The funds will benefit the region’s 1.5 million inhabitants living in municipalities spread around the region, comprising also very small municipalities.

Lithuania: a € 100 million loan to the Government to support energy efficiency improvement measures in multi-apartment buildings across the country. The aim of the project is to reduce energy consumption and heating costs, protect the environment and improve the living conditions of an estimated 8,000 to 9,000 households, including low-income families. Also, a € 25 million loan to the City of Kaunas to finance municipal investments aimed at improving public infrastructure and services. The loan will benefit the inhabitants of the city of Kaunas and of the region.     

Netherlands: a € 150 million loan to Coöperatieve Rabobank to enhance the sustainability of micro-, small, and medium-sized enterprises (MSMEs) and not-for-profit providers active in the social economy. Final beneficiaries include patients, pupils and small family businesses.

Poland: a € 120 million loan to SG Equipment Leasing Polska to channel financing to micro-, small, and medium-sized enterprises (MSMEs) in order to reinforce their competitiveness and support the creation and preservation of permanent and seasonal jobs in the country.  

Serbia: a € 30 million loan to Unicredit Bank Serbia to support MSMEs throughout the country. It is expected that the funds provided by the CEB will benefit at least 1,300 businesses in a variety of sectors, including commerce, industry and agriculture. 

Slovak Republic: a € 50 million loan to VUB Banka to finance investment projects undertaken by Slovak regions, municipalities and companies providing public service in the modernisation of public infrastructure as well as the productive investments of MSMEs mainly in manufacturing and transportation. 

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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.