CEB approves new loans to mitigate COVID-19 impact and support sustainable growth

03 July 2020

PARIS - The Administrative Council of the Council of Europe Development Bank (CEB) approved, via written procedure, six new loans totalling € 326.5 million. The financing will help member countries mitigate the impact of COVID-19, preserve and create jobs, as well as invest in sustainable transport solutions and education for all.

Italy: A €75 million Project Loan to Ente Ospedaliero Ospedali Galliera to build a new hospital in compliance with the highest European standards in terms of accessibility and services. Target final beneficiaries include the Region of Liguria’s population, which is characterised by a high share of the elderly.

Lithuania: A €100 million Public Sector Financing Facility* to the Government of Lithuania to address the current crisis by supporting COVID-19 related budgetary expenditure for emergency health care and basic public services. The beneficiaries comprise a wide range of people in Lithuania, with a focus on employees, medical staff, families and households, people seeking medical treatment, staff involved in COVID-19 concerned sectors, etc. Also, a €21.5 million Public Sector Financing Facility to Kauno Autobusai to finance the modernisation of the public transport in Kaunas City Municipality. The main objective is to improve the quality and environmental sustainability of public transport by co-financing the renewal of the bus fleet. Final beneficiaries of the project will be current and future users of the public transport system in Kaunas.

San Marino: A €10 million loan to San Marino to support the country’s efforts in managing the COVID-19 health crisis by co-financing medical expenses incurred by the State Hospital. In particular, San Marino’s hospitalisation capacity will improve to 20 ICU and 70 coronavirus-dedicated beds, while medical supplies, such as the diagnostic tests, will help to contain another potential coronavirus outbreak. Final beneficiaries will be San Marino residents.

Serbia: €20 million in additional financing to ProCredit Bank Serbia to support micro, small and medium-sized enterprises (MSMEs) throughout Serbia, particularly those that have been negatively impacted by the COVID-19 pandemic. The CEB loan will contribute to the preservation of existing jobs and to the creation of new, permanent and seasonal, employment opportunities. On the longer term, these investments are set to contribute to Serbia’s sustainable economic recovery.

Sweden: A €100 million Public Sector Financing Facility to the City of Uppsala to partially finance the construction of new educational buildings as well as restoration, renovation, or extension of existing facilities. The investments will create 4 100 pre-school and primary school places by the 2022-2023 academic year and will thus allow the city to better respond to an increase in overall population by approximately 125 000 residents in the next three decades. In addition, all new and renovated infrastructures will be energy efficient and will be planned for better climate resilience. The final beneficiaries of this project will be children attending pre-schools, primary and secondary schools as well as the community at large.

* “Public Sector Financing Facility” is a CEB loan instrument designed to enable the provision of flexible financing in CEB sectors of action to support exclusively investment programmes of the Bank’s member states or their primarily budget-financed public entities with sub-optimal funding levels. PFFs aim to safeguard the viability of social development investments faced with the lack of stable budget funding over time.

Set up in 1956, the CEB (Council of Europe Development Bank) has 42 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.