Council of Europe Development Bank (CEB) approves ten new loans worth EUR 810 million for social projects

NICOSIA, 19-Jun-2017 — /EuropaWire/ — Today (16 June 2017), at its meeting held in Nicosia, the Administrative Council of the Council of Europe Development Bank (CEB) approved ten new loans worth € 810 million. This brings the total amount approved for projects so far this year toclose to € 2.3 billion.

Croatia: a € 100 million loan to HBOR, the Croatian Bank for Reconstruction and Development in order to help create jobs and support the development of social infrastructure in the country. The programme will provide financing for micro, small and medium-sized enterprises (MSMEs) for their investment projects.

Czech Republic: a € 100 million loan to Komerční banka for the partial financing of investment projects undertaken by Czech municipalities and also by public, mixed (public/private) and private companies providing public service. The CEB-financed programme will improve living conditions through the co-financing of public infrastructure modernisation projects.

Iceland: a € 10 million loan to Municipality Credit Iceland (MCI) to co-finance investments for the modernisation of urban and rural public infrastructure. CEB funds will also support environmental protection projects as well as projects aimed at increasing energy efficiency.

Lithuania: a € 35 million loan to the City of Vilnius, Lithuania’s fast-growing capital. The CEB loan will provide financing for municipal projects which form part of the city’s development plan. The financing is expected to make an important contribution to improving the living conditions of the inhabitants of Vilnius.

Malta: a € 29 million loan to Malita Investments, a housing company whose main shareholder is the Maltese state. The project will provide affordable housing to the most vulnerable population groups in the country and will also help to regulate the social housing market.

Netherlands: a € 50 million loan to the Fund for Sustainable Foundation Rehabilitation, to co-finance the rehabilitation of houses affected by unstable foundations in several regions in the country. In addition, a € 16.6 million loan to Qredits, a major Dutch microfinance provider. CEB funds will be used for the provision of microloans to entrepreneurs from disadvantaged groups, including persons of migrant background, thus contributing to job creation in the Netherlands.

Poland: a € 100 million loan to PKO Leasing, Poland’s largest leasing company. The CEB-financed programme aims to strengthen the competitiveness of Polish MSMEs thus contributing to job creation and preservation. This follows two CEB loans previously provided to PKO Leasing, worth a total of € 100 million.

Spain: a € 300 million loan to Instituto de Crédito Oficial (ICO), the country’s public financial development institution. The CEB loan, which follows a loan in the same amount approved in March 2016, will facilitate access to financing for MSMEs in order to strengthen their competitiveness and promote job creation in Spain. In addition, a € 69 million loan to SOMACYL, to partially finance social investments in the Castilla y León region geared towards promoting sustainable mobility and the production of renewable energy as well as supporting the development of sustainable rural tourism infrastructure.

Set up in 1956, the CEB (Council of Europe Development Bank) has 41 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, AA+ with Standard & Poor’s, outlook stable and AA+ with Fitch 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.

SOURCE:  The Council of Europe Development Bank (CEB)


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