CEB approves ten new loans totalling €1.2 billion

PARIS - The Council of Europe Development Bank (CEB) approved ten new loans totalling €1.2 billion to support resilience and social cohesion across Europe. The projects range widely in volume and objectives, including two substantial loans for natural or ecological disasters. The CEB will also finance investments in microfinance, urban, rural and regional development, education, social and affordable housing, as well as administrative and judicial infrastructure and protection and rehabilitation of historic and cultural heritage.

"These loans will support social cohesion and better living environments as well as lead to business and job creation in regions across Europe. Of particular note is the use of microfinance to support recovery from the war in Ukraine," CEB Governor Carlo Monticelli said.

BOSNIA AND HERZEGOVINA: A €3 million loan to Microcredit Company EKI LLC Sarajevo will co-finance microcredit loans to support employment, income-generating activities and energy efficient investments for vulnerable groups. The CEB loan will increase financial inclusion and development opportunities for micro-entrepreneurs and farmers who face significant challenges in accessing finance, while boosting the ability of low-income households to invest in home improvements and achieve energy-efficiency savings. The CEB will use the guarantee from its Social Dividend Account as credit enhancement for its loan to EKI, a first-time borrower for the CEB.

BOSNIA AND HERZEGOVINA: A €12 million loan to Bosnia and Herzegovina will co-finance the construction and equipping of the new Cultural and Sports Centre in the city of Mostar, with the aim of strengthening the post-war social integration of ethnically divided communities. The multi-functional, 5,000 person capacity facility will allow the city to host national and regional sports and cultural events as well as contribute to the urban regeneration of Mostar, improving the quality of life for an area with a population of over 160,000. Beneficiaries of the project include local cultural societies and sports clubs, as well as some 30,000 students from Mostar's schools and universities, who will have the opportunity to use the new facility.

BULGARIA: A €50 million European Co-financing Facility for the Republic of Bulgaria will help the country meet its national contribution requirements to access European Social Fund Plus (ESF+) funding under the EU Cohesion Policy. The CEB loan will be used for the national contribution to two Operational Programmes for Education and Human Resources Development, respectively, which have a total budget of almost €3 billion. The two Programmes have complementary objectives for modernising the educational environment, enabling better skills for the workforce and providing opportunities for gainful employment. In addition, the programmes will pay special attention to better integrating Bulgaria's less developed regions undergoing socio-economic transition.

CYPRUS: A €72 million loan to the Republic of Cyprus will support the creation of the new Cyprus Archaeological Museum in Nicosia as a leading international cultural institution dedicated to the country's rich archaeological heritage. As a dynamic cultural landmark, the new museum will feature expansive exhibition spaces and innovative digital technology, allowing it to fully realise its social and educational mission. By effectively reaching a wide and socially diverse audience, including those with special needs, the new museum will ensure broad participation while promoting equity and inclusion of vulnerable groups. Designed to stimulate urban regeneration in the centre of Nicosia, the museum will foster social and cultural interrelationships in the heart of the historically divided city, improving the well-being and quality of life of residents and visitors alike.

ICELAND: A €75 million Public Sector Financing Facility loan to Reykjavik Energy will finance climate mitigation through the renewal and expansion of hot water distribution systems, sewage networks and water supply infrastructure for the growing population in the Reykjavik metropolitan area. By providing equal access to cost-effective, essential services for all residents, including migrants and low-income households, the project focuses on equity and inclusion as well as maintaining strong social cohesion. The project supports Reykjavik's broader economic and environmental objectives by promoting energy efficiency and resilience to future crises, including natural disasters and severe climate events.

ITALY: A €350 million loan to Cassa depositi e prestiti S.p.A. (CDP) will cover part of the private sector reconstruction measures for properties of private individuals and enterprises in over 400 municipalities affected by the earthquakes that struck central Italy between August 2016 and January 2017. To date, more than 12,000 households remain displaced. The ultimate objective of the loan is to restore the conditions for the regeneration of the affected areas and, more broadly, to address the threats to social cohesion posed by reduced economic activity, lack of essential services and fewer educational and employment opportunities, which have already led to the emigration of young people from these less-developed regions. Including past financing, the CEB has lent a total of €700 million to the CDP in support of these objectives.

SERBIA: A €25 million loan to the Republic of Serbia will support the construction of a new prison complex for 484 inmates in the city of Subotica to alleviate overcrowding and address the dilapidated state of the country's detention facilities. The project builds on previous CEB-supported investments in prison construction and is part of a larger initiative in line with the new Prison Strategy of the Republic of Serbia, which underpins the country's commitments under Chapter 23 (Judiciary) of the EU acquis communautaire. The project aims to provide modern facilities to improve the living conditions of both inmates and staff, as well as additional space for workshops, recreation and learning opportunities for prisoners. The project is expected to improve the physical and mental well-being of inmates and enhance their prospects of reintegration into society upon release.

SPAIN: A €31 million loan will support Sostre Civic SCCL, a non-profit social housing cooperative developer, to build or refurbish more than 300 social housing units in the region of Catalonia. The programme, with a total cost of €62 million - partially financed by EU funds (13%) - is the largest cooperative housing project in Spain. The final beneficiaries will be residents of Catalonia who cannot afford to buy or rent at market prices. Around 25% of the homes will be reserved for socially and economically vulnerable people, including those with reduced mobility or intellectual disabilities as well as women who have been victims of gender-based violence. The programme will also cater to persons facing mental health problems and senior citizens. The CEB loan will benefit from the InvestEU partial guarantee.

TÜRKIYE: A €330 million loan to the Republic of Türkiye will help the country implement comprehensive mitigation measures and a disaster management system to gradually transform Istanbul's resilience to major earthquakes under the Istanbul Seismic Mitigation and Emergency Preparedness Project (ISMEP). Specifically, the loan will finance the reconstruction of two public hospitals on the Asian side of Istanbul to mitigate seismic risk, as well as the preparedness of emergency teams to provide post-disaster assistance. Launched in 2006, ISMEP is one of the largest risk mitigation projects in the world. CEB's share of the financing, including this latest loan, will reach €930 million, or one third of the total budget.

UKRAINE: A €3 million loan to the Joint-Stock Company of the Joint Stock Bank Lviv will support access to finance for micro-enterprises operating in the extremely challenging environment of Russia's war against Ukraine. Specifically, the CEB loan will help alleviate credit constraints for micro-enterprises in western Ukraine and support job creation in local communities that have been overwhelmed by more than one million internally displaced persons from the eastern parts of the country and the occupied territories. This loan marks CEB's first operation with the borrower and the Bank's first microfinance operation in Ukraine. It builds on the CEB's considerable experience with bank and non-bank microfinance in its member countries, including in the Western Balkans, where microfinance has played a role in post-conflict recovery.

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