CEB approves new loans for environment, social infrastructure and employment

PARIS - The Council of Europe Development Bank (CEB) approved ten new loans totalling more than €667 million. The financing will support environment and social infrastructure projects and improve access to funding for micro-, small- and medium-sized enterprises (MSMEs).

Albania: A €15 million Programme Loan to ProCredit Bank Albania to foster job creation and preservation by facilitating access to financial resources for small and medium-sized businesses. The loan will fund SME investments and working capital and thus contribute to mitigating the further deterioration of the labour market because of COVID-19. The CEB financing is expected to benefit some 100 projects, particularly in the trade and manufacturing sectors.

Estonia: A €20 million Public Sector Financing Facility to support the City of Tartu in implementing its 2030 Development Strategy, with a focus on two of its five development objectives – to become a city of knowledge and a city with a modern urban environment. The loan will ensure that the city continues to undertake planned infrastructure investments despite COVID-19. In particular, the CEB financing is expected to support improvements in schools, kindergartens, and local roads, for the benefit of Tartu’s 100 000 inhabitants. 

Finland: A €100 million Public Sector Financing Facility to the Helsinki Region Environmental Services Authority, the largest water, sewerage and solid waste utility in Finland, and an additional €80 million to an existing Public Sector Financing Facility to the City of Espoo. The financing for the Helsinki Region Environmental Services Authority will back their ten-year investment plan. Specifically, the loan will finance the provision of clean water supply and wastewater services to newly developed districts in the Helsinki metropolitan area as well as wider water and wastewater system resizing and efficiency improvements, associated with the network expansion. About 155 000 new residents are expected to benefit from the investments. The loan to the City of Espoo will further an ongoing investment programme in the education sector. It will finance the construction of new buildings as well as the restoration, renovation or extension of existing facilities, for the benefit of pupils and pre-school children living in Espoo.

France: A €100 million Public Sector Financing Facility to Département de la Gironde and an additional €150 million to an existing Cross-Sectoral Loan to Caisse des Dépôts et Consignations. The loan to Département de la Gironde will finance the construction as well as the rehabilitation and retrofitting of lower secondary schools and associated facilities.  The investments will result in better learning and working conditions for local pupils and teachers as well as in low-carbon schools that are accessible for all. The finance for Caisse des Dépôts et Consignations will support various housing solutions, including the retrofitting of existing buildings, for low-income persons and vulnerable groups.  

Italy: A €3.6 million Programme Loan to Permicro SPA, an additional €20 million to an existing Programme Loan to Istituto per il Credito Sportivo, and a €150 million Programme Loan to Cassa Depositi e Prestiti. The loan to Permicro will target the financial and social inclusion of low-income and vulnerable persons, with a focus on employment for women and female entrepreneur, through the provision of financing to small businesses and families. A financial guarantee from the CEB’s Social Dividend Account accompanies the loan. The financing to Istituto per il Credito Sportivo will support non-profit amateur sport entities to adapt to and mitigate the impact of the COVID-19 pandemic. Specifically, the CEB loan will be used to finance those entities that foster social inclusion and cohesion and support mental and physical health through sport initiatives. The loan to Cassa Depositi e Prestiti will facilitate Italian MSMEs’ access to finance for investments in capital goods for productive use as well as in hardware, software, and digital technologies. In line with the Government’s objectives set for this sector, the CEB financing will strengthen MSMEs’ response to COVID-19 market conditions by spurring innovation and competitiveness, and will thus create and preserve employment.  

Lithuania: A €28.8 million Public Sector Financing Facility to Kauno Vandenys (Kaunas Water Company) to modernise and expand the water supply and the wastewater (including rainwater) systems in Kaunas, in line with European water and wastewater directives. The investments will contribute to improving health and living conditions for more than 140 000 inhabitants by reducing the currently negative impact of an inadequate wastewater system on surface and ground water bodies as well as by improving the availability and the quality of drinking water.