Meeting of the Governing Board: Approval of the 2010 accounts
8 April 2011
In a financial and economic context that remains fragile, the CEB's net profit increased by 8.2% in relation to 2009 to reach € 116 million. An amount of € 5 million has been allocated to the Selective Trust Account, the Bank’s "social dividend" that enables the granting of donations and interest rate subsidies, notably in favour of projects corresponding to high priority social objectives in eligible Central, Eastern and South Eastern European countries.
During 2010, 31 new projects were approved for a total of € 2.3 billion, with 56% in favour of the target group countries. The total amount was broken down across 3 sectoral lines of action, with 50% in favour of strengthening social integration, 25% for environmental management and 25% in support of social public infrastructure. The overall volume of disbursements for the year remained stable at almost € 1.8 billion. At end 2010, the loans outstanding amounted to close to € 12 billion and continued to show a sound risk profile, with investment grade rated counterparties representing 82.3% of the outstanding.
In all, the activity objectives fixed in 2010, the first year covered by the 2010-2014 Medium-Term Development Plan, were met. Over the past 5 years, almost € 12 billion worth of projects have been approved and more than € 8 billion disbursed, of which 60% have been in favour of the target group countries in Central, Eastern and South Eastern Europe.
The Bank has thus shown its capacity to support projects promoting European solidarity and complying with the values of the Council of Europe. Its partnership with the European Union has been strengthened by various joint financing instruments. In order to enable the CEB to mobilise additional means of action, in particular in favour of its least advantaged Member States, on 4 February 2011 the Governing Board approved an increase in the Institution’s capital that should bring its own funds from € 4.9 to € 6.8 billion, representing a 40% increase, if all the CEB’s Member States subscribe to this capital increase.