News
Czech Národní rozvojová banka and CEB sign € 50 million loan to improve public services
16 December 2021
PRAGUE – Vice-Governor of the Council of Europe Development Bank (CEB), Tomáš Boček, and Chairman of the Board of Directors of Národní rozvojová banka (NRB), Jiří Jirásek, today signed a framework loan agreement worth € 50 million to support financing of public sector and public services.
“The COVID-19 pandemic has generated enormous pressures on Europe’s social infrastructure and exacerbated the pre-existing gaps in quality of and access to public services,” said Vice-Governor Boček. “This loan is therefore in line with the enhanced mandate of the NRB to finance expected increased demand for municipal infrastructure projects caused by the pandemic, and aims to build a sound foundation for post-crisis recovery and to ensure more resilient societies in the future.”
The CEB loan is expected to finance more than 100 municipal or public service sub-projects, mostly in the sector of public transportation, building and road reconstruction, water supply and waste management. Those projects will be fully aligned with the Czech government’s objective to support regional development.
NRB will use raised CEB funds to provide preferential loans. "The preferential financing will be available not only to regions, towns and municipalities, but also to entrepreneurs operating in the construction and modernisation of key public and private infrastructure in the Czech Republic, especially in projects that improve the quality of the environment and thus improve the living conditions in Czech towns and municipalities," said Chairman of the NRB Board of Directors, Jiří Jirásek.
In parallel, the loan may provide long-term funding and bridge financing to cover the funding needs of sub-projects co-financed by the European Structural and Investment Funds (ESIF) or the European Union’s Recovery and Resilience Facility (RRF).
The final beneficiaries of the financed sub-projects will be inhabitants of target municipalities and regions in order to bring their living standard closer to the European Union average.
Czech Republic
The Czech Republic joined the CEB in February 1999. In addition to receiving
loans from the Bank, it contributed to the Regional Housing Programme, the
Migrant and Refugee Fund, and the Green Social Investment Fund. 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 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.
*unsolicited