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CEB to finance the acquisition of COVID-19 vaccines for Kosovo

19 March 2021

PARIS - The Council of Europe Development Bank (CEB) approved an additional €25 million to support Kosovo authorities’ efforts to purchase COVID-19 vaccines for about 50% of the population. The CEB loan will also cover the cost of the consumables associated with the roll-out of the vaccines and medical equipment.

Kosovo will receive vaccines for 20% of the population from the Gavi COVAX Facility. The CEB loan will co-finance the purchase of COVID-19 vaccines for another 50% of the population.

The CEB financing comes with an interest-rate subsidy grant from the Bank’s Social Dividend Account. It will complement the funding made available by the European Union, the International Monetary Fund, and the World Bank to help Kosovo to manage the COVID-19 pandemic.

The new loan builds on a €35 million financing agreement signed in August 2020, which covered a part of Kosovo’s emergency healthcare costs, with a focus on hardship incentives to healthcare and pharmacy employees and the acquisition of medical equipment, supplies and consumables.

The Governor of the CEB, Rolf Wenzel, said: “We are pleased to be able to continue supporting Kosovo’s response to the COVID-19 pandemic, alongside the EU, the IMF, and the World Bank. In line with its exclusively social mandate, the Bank will play its part in addressing unequal COVID-19 vaccine access across its member countries. This is key not only for overcoming the current health crisis but also for mitigating the growing social and economic inequalities set in motion by the pandemic.”

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[1] Kosovo joined the CEB in November 2013. The Bank approved a €37 million in financing in 2020 to support the authorities’ response to COVID-19 and to ensure access to finance for micro-enterprises and low-income farmers and private households. More information can be found here.

[2] The SDA was established in 1996. It is financed mainly by contributions from CEB member states, through allocations from the Bank’s annual profit, which constitute dividends of a social nature. The Account is used to provide loan guarantees, technical assistance, interest-rate subsidies and grant contributions in favour of highly social projects. More information can be found here.

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 (Aa1 with Moody's, outlook stable, AAA with Standard & Poor's, outlook stable, AA+ with Fitch Ratings, outlook stable and AAA* with Scope 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.
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