New CEB loan to Czech Republic to improve public services and protect the environment
24 September 2021
PARIS – The Council of Europe Development Bank (CEB) has approved a € 50 million loan to the Národní rozvojová banka (NRB) to support financing of public sector and public services in line with enhanced mandate given to NRB by the Czech government and to finance expected increased demand for municipal infrastructure projects caused by the COVID-19 pandemic.
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.
The loan may, in parallel, 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 pandemic has generated new and enormous pressures on Europe’s social infrastructure and systems, in addition to the pre-existing gaps in quality and access,” said CEB Governor Rolf Wenzel. “With this loan, the CEB aims to build a broadly-based foundation for post-crisis recovery and to ensure more resilient societies in the future.”
The loan will make the products of the Národní rozvojová banka, which are aimed at municipalities, municipal companies and private companies providing public services, more accessible.
The final beneficiaries of the financed sub-projects will be the inhabitants of target municipalities and regions, with the final goal of bringing their living standard closer to the European Union average.
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.