News
Italy: CEB approves € 300 million for immediate expenditure associated with COVID-19 pandemic
20 April 2020
PARIS – The Council of Europe Development Bank (CEB) approved a € 300 million loan to Italy to finance health expenditure associated with the COVID-19 pandemic.
In a decree issued on 23 March 2020, Italy defined a set of extraordinary measures aimed at managing the COVID-19 pandemic in the immediate term with a focus on emergency management and ensuring business continuity for public and private sectors. The package includes a € 1.6 billion refinancing of the Emergency Fund available for the Department of Civil Protection (DCP). The latter is responsible for coordinating emergency operations throughout Italy, including through the provision of active support to regions and local authorities so that they can deliver adequate healthcare and social services and maintain the safety and security of their people.
The loan provided by the CEB will contribute to the financing of the Emergency Fund and of COVID-19-related measures as well as extraordinary expenditures incurred by the DCP. This will include in particular the operation and maintenance of healthcare systems throughout Italy and the acquisition of healthcare equipment and consumables. It may also cover costs associated with the construction and conversion of temporary emergency facilities and with the employment of temporary medical staff.
CEB Governor Rolf Wenzel said: “The COVID-19 pandemic has been putting a lot of strain on the health systems of CEB member countries. In response to this situation, the CEB adapted its procedures and has been swiftly approving financial support for its members, particularly those affected the most by the pandemic. The financing approved for Italy is a testament to this commitment. Additional support may be made available in the coming months so that the loss of human life and the socio-economic impact of COVID-19 are further limited.”
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Italy is a founding member of the CEB. To date, the Bank has provided more than € 6 billion in financing for a wide range of social investments, from education and various other municipal infrastructure improvements, including earthquake and flood protection, to support for MSMEs. In addition, Italy is a key contributor of grant resources to the Bank’s trust funds. More information can be found here.
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 (AA+ with Fitch Ratings, outlook positive, AAA with Standard & Poor's, outlook stable and Aa1 with Moody's, 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.