Lithuania: CEB approves €125 million to support public investments
28 January 2020
PARIS - The Council of Europe Development Bank (CEB) has approved a €100 million loan to the Lithuanian government to finance the State Investment Programme and a €25 million loan to Kaunas City Municipality.
The financing approved in support of Lithuania’s State Investment Programme will assist with the improvement and modernisation of public infrastructure. It is the third loan approved by the CEB in favour of state investment programmes since Lithuania joined the CEB. The financing will benefit public and regional entities and municipalities engaged in reconstruction and/or expansion of cultural, health, education (including sports), and public transport facilities and services, in line with “Lithuania 2030” National Strategy. Predicated on the 2030 Agenda and the achievement of the sustainable development goals, the latter is focused on building a “smart society, smart economy, and smart governance.”
The funds provided by the CEB to Kaunas City Municipality will finance municipal infrastructure under the City Development Plan for the period up to 2022, including investments in transport, education, housing and other public infrastructure. The financing adds on a €25 million loan to the Municipality with a similar scope that was approved by the CEB last year and of which more than 60% has already been disbursed. The investments will lead to enhanced municipal services for the 290,000 inhabitants of the City of Kaunas and the 560,000 people living in Kaunas region.
The Governor of the CEB, Mr Rolf Wenzel, said: “We are delighted to be strengthening our cooperation with Lithuania, with projects that are key to the improvement of public social infrastructure and services in urban and rural areas alike. In line with our mandate and our newly approved Development Strategy, the projects will sustainably and inclusively contribute to the personal development and well-being of its citizens.”
---Lithuania joined the CEB in January 1996. To date, the CEB has approved more than €500 million in loans to support investments in MSMEs and public social infrastructure across sectors and throughout the country. In addition, the Bank has provided direct financing to cities and municipalities such as Vilnius and Kaunas. Lithuania is also a contributor of grant resources to the CEB. In November 2015, the government contributed € 150,000 to the CEB’s Migrant and Refugee Fund (MRF), a grant-based facility set up in October 2015 to help its member states tackle the migrant and refugee crisis.
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.