Meeting of the Governing Board: Approval of the accounts for financial year 2007
28 March 2008
During 2007, the Council of Europe Development Bank further intensified its contribution to promoting social cohesion and solidarity in Europe. This went hand in hand with continued strengthening of its financial base and a net result amounting to 93.3M€, up 6% in relation to 2006. 2007 was also marked by the launching of a strategic review aimed at enabling the Bank to still better respond to the challenges of its social mandate and to adapt to the rapidly changing environment in which it operates. This review will be continuing throughout 2008.
2007 Activity: During 2007, 37 new projects were approved for a total amount of € 2 414 million, including 25 projects (€ 1 191 million) in favour of the target group countries. The amount of new commitments rose to € 2 621 million (+ 68%). At end 2007, the loans outstanding stood at € 12 billion, spread over 33 of the Bank’s 40 member states. In compliance with the guidelines set out in the Development Plan, the overall annual volume of disbursements remained at € 1 590 million, over 42% of which corresponded to the target group countries in Central and South Eastern Europe. During the year, Georgia and Montenegro joined the CEB, bringing the number of countries in the target group to 21. In 2007, the breakdown of the activity according to the three major sectoral lines of action was as follows: 56% in favour of strengthening social integration, 22% for environmental management and 22% to foster human capital development.
This intensification of the Bank’s social contribution, despite a deteriorating international economic environment since summer 2007, was made possible by the Institution’s financial soundness and the continued adaptation of its means of action. In 2007, the CEB launched issues for € 2.9 billion, 87% denominated in United States dollars and 13% in Australian dollars. The CEB implements its funding policy within the framework of an annual authorisation fixed by its Administrative Council. For 2008, this authorisation stood at € 3.5 billion.
2007 Results: The net profit reached € 93.3 million in 2007, representing a significantly higher figure than that for 2006. The Institution’s own funds now stand at € 4.8 billion. An amount of € 5 million was allocated to the Selective Trust Account, representing a real social dividend enabling the CEB to grant donations or interest rate subsidies in favour of projects corresponding to its high priority objectives in the transition countries. The prudential framework ratios, inspired by the Basel Recommendations, show very favourable trends.