The CEB approves new loans to mitigate the COVID-19 pandemic and restart European economies

25 September 2020

PARIS - The Council of Europe Development Bank (CEB) approved new loans totalling € 707 million. The financing will help eight European countries to further mitigate the impact of the COVID-19 pandemic, provide for the vulnerable, or restart their economies.

Andorra: A €12 million Public Sector Financing Facility (PFF) to the Government of Andorra to support the country’s efforts to contain the COVID-19 pandemic. The CEB loan will mostly finance medical and pharmaceutical supplies and will benefit Andorra’s 77 000 inhabitants.

Germany: A €180 million Project Loan to a subsidiary of Universitätsklinikum Hamburg, a major public hospital and cutting-edge research and teaching center in Germany. The loan will finance the construction of three new medical and research buildings. Patients, medical staff, and researchers operating in these buildings will benefit from improved treatment, care, and working conditions.

Italy: A €50 million PFF to the Municipality of Milan to support key investments in sustainable mobility, urban regeneration, and the renovation of public buildings. The PFF will contribute to the Municipality’s plan for a green and inclusive recovery from the COVID-19 pandemic by strengthening its resilience to climate change and socio-economic stresses. Milan’s 1.3 million inhabitants are expected to benefit from the project and in particular vulnerable groups such as young pupils and social housing end-users.

Montenegro: A €40 million Programme Loan to the Government of Montenegro to mitigate the economic impact of the COVID-19 pandemic on micro small and medium enterprises (MSMEs) by financing their working capital requirements and investments. Recipient institutions will include the Investment and Development Fund of Montenegro and some around 13 commercial banks that will make the financing available to Montenegrin MSMEs.

Romania: A €15 million increase in an on-going €50 million Programme Loan agreement with Raiffeisen Leasing IFN S.A. in order to continue responding to the needs of its MSME customers. The loan will allow Romanian MSMEs to undertake productive investments such as vehicles, machinery and equipment, as well as office and production premises. The additional financing will help beneficiary MSMEs to better respond to the challenges posed by the current COVID-19 pandemic.

Slovak Republic: A €10 million increase in an on-going €49.5 million Programme Loan agreement with the Žilina Self-governing Region for investments in transportation infrastructure, hospitals, and social care facilities. The CEB loan may also be used to facilitate and accelerate the implementation of other municipal and regional infrastructure projects financed from the European Structural and Investment Funds (ESIF). The additional financing will benefit the 690 000 inhabitants of the Region.

Spain: A €200 million PFF to the Comunidad de Madrid and a €50 million PFF to the Comunidad Foral de Navarra. The former will support Madrid in its efforts to ensure adequate care and accommodation for the elderly, the disabled, and for victims of gender violence. The PFF capitalises on a previous agreement that has benefitted more than 400 000 vulnerable people to date. The latter will support the Region of Navarra’s efforts to provide quality social care services to the elderly and the disabled. About 150 000 persons are expected to benefit from the CEB financing.

Turkey: A €150 million increase in an existing Project Loan agreement with Turkey for the financing of the Marmaray Project - a major mass-transit, green infrastructure project aimed at improving urban mobility in Istanbul for the benefit of its 16 million inhabitants. The CEB financing will contribute to the realisation of the Commuter Rail Upgrading component and in particular to extension works in the Haydarpaşa train station area.

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 stable, 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.