The Council of Europe Development Bank (CEB) approved today four new loans totalling €600 million

Athens – At its 56th Joint Meeting taking place in Athens, Greece, the Council of Europe Development Bank (CEB) approved four new loans today totalling €600 million in support of social housing, MSME financing, long-term social care and co-financing of the national contribution for eligible investments backed by EU funds.

Governor Monticelli commented: “In these challenging times we are supporting our member states to address the fallout of the Russian aggression against Ukraine, including the energy crisis and the ongoing influx of refugees. True to our mandate we also continue to bolster long-term projects to reduce inequality and provide quality services to cities across Europe.”

Germany: A €100 million loan will help one of the largest municipally-owned housing companies in Berlin, HOWOGE Wohnungsbaugesellschaft MBH, to expand the provision of modern social and affordable housing, especially in the economically underprivileged Eastern districts of the city. The project will focus on supporting the most vulnerable segment of the population – including more than 100,000 displaced persons from Ukraine now living in Berlin – through targeted design, careful allocation of residential units, rental caps and advisory support to vulnerable tenants. An additional positive impact will be generated building housing complying with high energy efficiency standards which will reduce costs for beneficiaries as well as CO2 emissions. 

Hungary: A €50 million loan to the Hungarian Development Bank (MFB) will partially finance MFB’s pilot Energy Efficiency Loan Programme in support of eligible investments undertaken by micro, small and medium enterprises (MSMEs) for renewable energy production and energy-efficient renovation of their premises. The programme will fund investments aimed at protecting existing and future jobs endangered by the energy crisis which, together with difficult funding conditions, has been heavily impacting MSMEs in Hungary. The CEB has built a longstanding relationship with MFB with ten loans approved over the course of the past 24 years. 

Slovak Republic: A €300 million loan to the Slovak Republic will partially co-finance “Operational Programme Slovakia” 2021-2027. The programme aims to reduce social, economic and environmental inequalities as well as reduced poverty and social exclusion through better employability of disadvantaged groups, equal opportunities and strengthened social rights for all. It will support measures to reduce regional disparities, promote smart and sustainable development of the less economically developed regions, and strengthen citizen participation in public decision-making. The envisaged measures will support just transition through training and new job opportunities for former employees in the mining industry and the revitalisation of areas affected by pollution caused by the production of electricity and heat from coal.

Spain: A €150 million additional loan to Comunidad Autónoma de Andalucía will provide continued support to the region’s expenditures on long-term and social care provided by external suppliers. Eligible investments will enable the elderly and the persons with disabilities to maintain a quality of life with independence and dignity and to lead more autonomous and happier lives in the community. The initial CEB loan, approved in 2022, equally aimed to help Andalusia in its efforts to provide quality social care services; it benefitted more than 182,000 recipients of social services in the region.

Additionally, Governor Monticelli and the Ambassador Petr Válek, Permanent Representative of the Czech Republic to the Council of Europe, signed an agreement for a CZK 700,000 contribution to the CEB’s Ukraine Solidarity Fund. Czech Republic regularly contributes to the CEB’s trust funds, whose aim is to support the most vulnerable.