CEB signs a record €450 million loan with Poland to aid displaced people from Ukraine

24 June 2022

Warsaw – Governor of the Council of Europe Development Bank (CEB), Carlo Monticelli, and the Minister of Finance of Poland, Magdalena Rzeczkowska, signed today a record €450 million loan to provide aid to displaced people from Ukraine.

This is the largest-ever loan approved by the CEB. It will support the plan of the Government of Poland to address the massive influx of people fleeing the war in Ukraine. Poland has so far welcomed more than 4 million displaced people from Ukraine, mostly women with their children, and elderly people. 

“The size of the loan that we signed today demonstrates CEB’s unequivocal determination to support Poland timely and effectively to overcome an unprecedented economic challenge and a human tragedy,” said CEB Governor Monticelli. “In that respect we are very pleased that our loan is designed to address the evolving needs of displaced people and their host communities, involving both government institutions and civil society.” 

The CEB loan will partially finance the “Aid Fund”, set up by the Government of Poland to refund the emergency and social aid costs incurred by entities at the frontline of aiding displaced persons from Ukraine. 

Temporary assistance to displaced persons from Ukraine financed by the CEB loan will be provided through multiple mechanisms, coordinated by government ministries, municipalities and civil society organisations. The focus will be on covering the costs of one-off living benefits and allowances for accommodation, subsistence and monthly allowances for children.

“The loan signed today, related to the support provided by the Polish authorities to the Ukrainian citizens fleeing the war on their territory, is the best example of CEB’s ability to assist member countries when needed,” said Minister Rzeczkowska.

The largest beneficiaries of the Polish Aid Fund will be municipalities, the Ministry of Family and Social Policy and the Social Insurance Institution, as well as the Ministry of Education and Science, and the Ministry of Health.

Municipalities will use the resources from the Aid Fund mainly to cover the cost of accommodation, while the Ministry of Family and Social Policy together with the Social Insurance Institution will rely on them to pay one-off living benefits to all registered displaced people from Ukraine and monthly allowances for children. The Ministry of Education and Science and the Ministry of Health are expected to use the fund resources to purchase additional equipment and medicine.

Read more about our response to the Ukraine refugee crisis: CEB and Ukraine refugees

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 positive 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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