Delivering for Europe in uncertain times: Message from the Governor

The Bank’s operations in such crucial sectors as healthcare, education, affordable housing and microfinance, and its focus on vulnerable groups give the CEB’s social mission additional relevance in the current volatile economic and social context, particularly as competing priorities risk overshadowing the pressing needs for essential social investment.

The CEB’s capacity to deliver impact was clearly demonstrated in 2024, when it financed 44 new projects, totalling €4.5 billion, across 22 member countries, examples of which are highlighted in this report. These include Ukraine where, in addition to funds supporting people displaced by the war, the CEB deepened its operations for healthcare, housing and microfinance. They also include Iceland, for which the Bank was the very first international financial institution to extend emergency relief following the devastating volcanic eruptions during the year.

Responsiveness and agility are distinguishing features of the CEB. They go hand in hand with the close attention the Bank gives to the detail of each project, large or small: its skilled and dedicated staff work alongside clients, communities and beneficiaries on the ground, fostering an inclusive spirit and tailoring the financial and technical support needed for the project’s success. Each project, no matter what size, is designed to bring tangible improvements to the social fabric on which Europe’s cohesion and resilience depend.

The CEB is better equipped to offer such support, following the successful closure of the Bank’s 7th capital increase, which was the first one ever with additional cash resources, bringing the paid-in capital to €1.8 billion. The very high participation rate (over 95%) underscores the shareholders’ abiding support and confidence in the Bank, which the CEB and I are grateful for and again commit to

The stronger capital base will help the Bank secure the most favourable conditions in international financial markets for the benefit of its borrowers

honour with our unfailing dedication to the Bank’s mission. The stronger capital base also enhances the Bank’s funding capacity, helping it to secure the most favourable conditions in international financial markets for the benefit of our borrowers, and allowing it to leverage the growing interest in social projects among global investors, including through its trademark Social Inclusion Bonds, which surpassed €10 billion in total issuances in 2024.

Deepening the Bank’s partnerships is vital for navigating the difficult and unpredictable road ahead. The CEB enhanced its close collaboration with the EU, notably through InvestEU. This partnership, based on EU guarantees and advisory services, has enabled the CEB to mobilise additional financing and technical assistance for its counterparties. Importantly, it has allowed the Bank to reach out to more vulnerable and underserved groups.

Finally, it should be recalled that the CEB has the honour of assuming the role of Chair of the Heads of the Multilateral Development Banks Group in 2025. In the last couple of years, MDBs have been particularly proactive in working together as a system to achieve greater scale and impact, with the aim of accelerating progress on sustainable development. The CEB is determined to drive the momentum of the Group forward.

Paris, 20 March 2025

Carlo MONTICELLI

©CEB 2025