CEB signs €50 million loan agreement with Thüringer Aufbaubank to finance municipal investments and MSMEs
5 December 2018
ERFURT – The Governor of the Council of Europe Development Bank (CEB), Rolf Wenzel, signed a €50 million loan agreement with Thüringer Aufbaubank(TAB) to finance social investments in Thuringia aimed at the modernisation of municipal infrastructure and to support micro, small and medium-sized enterprises (MSMEs).
Faced with challenges such as a declining, ageing population and public infrastructure in need of modernisation, Thuringia has made it a priority to improve living conditions in urban and rural areas, particularly for young people, and to support job creation.
The CEB loan to TAB, which is state-owned, will contribute to Thuringia’s regional social investment plan. More specifically, the funds will support municipal projects in health, education and other public infrastructure, such as the modernisation of the road network and energy efficiency measures. The municipalities with access to this line of credit will also benefit from technical advice provided by Thuringia’s Energy and Green Tech Agency on how to maximise the environmental benefits of their investments.
In addition, the CEB funds will provide a credit line to MSMEs in a wide range of sectors, including in manufacturing, trade and retail services. They will be used for the financing of the businesses’ needs in terms of fixed assets and productive equipment, such as the purchase of machinery, vehicles, IT and office equipment, and the renovation, construction or acquisition of buildings or land.
The loan is expected to make an important contribution to the social development of Thuringia, benefiting the wider community and boosting job creation and preservation in the region. The agreement was signed at TAB headquarters in Erfurt. Signing on behalf of the TAB was Mr Matthias Wierlacher, Chief Executive Officer, as well as two Members of the Board, Mr Eckhard Hassebrock and Mr Michael Schneider.
CEB and Thüringer Aufbaubank representatives, including Rolf Wenzel and Matthias Wierlacher (front row)
Commenting on the signing of the loan agreement, Governor Wenzel expressed his satisfaction with the cooperation with TAB, which would enable the CEB to reach small businesses and municipalities throughout the region. “The modernisation of public infrastructure in areas such as education and health and support for MSMEs are among the CEB’s core sectors of operation at a time when all European countries face challenges precisely in these areas,” he underlined.
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.