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The CEB supports Xunta de Galicia’s response to the COVID-19 pandemic

22 March 2021

PARIS - The Council of Europe Development Bank (CEB) approved a €50 million loan to Xunta de Galicia to support the region’s response to the COVID-19 pandemic. 

The CEB loan will allow the region to hire additional medical and auxiliary staff for the hospitals and the elderly care homes. The loan will also finance COVID-19-related medical and pharmaceutical supplies, consumables, and equipment, including diagnostic tests. In addition, CEB financing may cover the costs of having additional intensive care beds, if needed.

As Spain is going through the third wave of the COVID-19 pandemic, some regions, including Galicia, are reporting a higher incidence rate than that recorded in March 2020. Despite the various measures put in place by the authorities, Galicia accounts for close to 3.5% of COVID-19 cases, while the incidence rate continues to rise.

The Governor of the CEB, Rolf Wenzel, said: “We are pleased to be able to support Galicia with its COVID-19 response plans, and in particular, in its efforts to leave none of its 2.7 million inhabitants behind, particularly those that are most vulnerable such as the elderly. This is CEB’s second opportunity to cooperate with the region and we are looking forward to strengthening our relationship while the Bank’s financing is put into practice.”

The Regional Minister of Finance and Public Administration of Xunta de Galicia, Valeriano Martínez, emphasised Galicia’s return to the financial markets as the result of the investors’ and multilateral banks’ trust in the Region’s solvency and political and economic stability. He added: “One of the most attractive financing formulas, included in the recommendations of our Committee of Experts, is multilateral banks such as the CEB. The agreement reached with the CEB makes it possible to obtain financing under very advantageous conditions, a long-term loan with an interest rate below the market rate.”

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Spain joined the CEB in January 1978. Over the past 10 years, the CEB has provided more than €4 billion in financing for a wide range of investments, ranging from health, social care and sustainable transport to support for MSMEs. Spain has contributed more than € 5 million in 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 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 stable 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.
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