Presentation of the Council of Europe Development Bank

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A multilateral development bank
with a social vocation
 The oldest pan-European supranational
financial institution set up in 1956 by 8
member countries of the Council of
Europe
 40 Member States
All are members of the Council of Europe
 21 Central, Eastern and South Eastern European
countries, forming the Bank’s target countries, are
listed among the Member States
(Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Czech
Republic, Estonia, Georgia, Hungary, Latvia, Lithuania, Malta, Moldova,
Montenegro, Poland, Romania, Serbia, Slovak Republic, Slovenia, “the
former Yugoslav Republic of Macedonia”, and Turkey).
 Non-member States: Andorra, Armenia, Austria, Azerbaijan,
Monaco, Russia, Ukraine, United Kingdom
Key figures
 More than € 30 billion in projects financed





since inception
Loans outstanding: € 12 billion
Total assets: € 26 billion
Own funds: € 6.5 billion
Loans disbursed in 2011: € 1 855 million
Rating AAA (Moody’s outlook stable, Standard &
Poor's, outlook negative and Fitch Ratings, rating watch
negative)
(figures at Dec. 11)
Loans outstanding
13,500
12,000
11,483
11,965 12,007
12,423 12,198
11,988 12,075
2006
2008
10,765
10,500
9,903
in million euros
9,350
8,442 8,630
9,000
7,743
7,500
6,337
6,000
6,076
6,402
5,629 5,842
4,500
3,000
1,500
0
1994
1996
1998
2000
2002
2004
2010
CEB’s action in support of the
target countries
Target group countries:
New EU Member States + non-EU Member States in Eastern and South Eastern Europe
3 sectoral lines of action
 Strengthening social integration




Aid to refugees, migrants and displaced persons
Housing for low-income persons
Creation and preservation of viable jobs
Improvement of living conditions in urban and rural areas
 Managing the environment
 Natural or ecological disasters
 Protection of the environment
 Protection and rehabilitation of historic and cultural
heritage
 Supporting public infrastructure with a social vocation
 Health
 Education and vocational training
 Infrastructure of administrative and judicial public services
The CEB and Sports Facilities
I. The Policy for Loan and Project Financing (Resolution 1522 (2009), Handbook for
the preparation and monitoring of projects Chapter I, 1.4) states:
 Chapter 1 – 1.4 Improving living conditions in urban and rural areas
“The CEB finances projects involving the construction or rehabilitation of infrastructure in
matters of urban rehabilitation and rural modernisation in favour of public entities at national or
local level, such as:


basic educational and medical facilities;
socio-cultural or sports centres such as playgrounds, green spaces, exhibition sites,
theatres and libraries;
 Chapter 3 – 1.2 Education and vocational training
“The CEB can finance projects involving education and vocational training as well as related
infrastructure such as:

construction and/or rehabilitation of school and university establishments, including
sports and cultural equipment as well as those pertaining to university halls of residence;
Projects approved for the funding
of Sports Facilities
 In 2003, a € 54.4 million loan , for the Government of Romania for the partial financing of the construction of
300 sports’ halls attached to schools throughout Romania.
 In 2004, a € 70 million transit loan in favour of Banca Intesa S.p.A (Italy) for the partial financing of a
programme of investments in social infrastructure , including sport facilities, in Croatia, the Czech Republic,
Hungary and the Slovak Republic.
 In 2005, a € 12.4 million loan for the Government of Albania for the partial financing of a ‘Schools
Development and Rehabilitation Programme’ in the municipality of Tirana. 7 new schools were constructed
and 12 schools were rehabilitated, comprising sports facilities.
 In 2007, a € 12.5 million loan for the government of “the former Yugoslav Republic of Macedonia” for the
construction of 145 new Physical Education Facilities (PEFs) and the provision of the equipment needed to
provide quality Physical Education.
 In 2008, a € 100 million loan was approved in favour of Caixa Geral de Depositos SA (Portugal) for the
partial financing of a programme of investments in the field of education such as the construction and/or
rehabilitation school and university establishments, including sports and cultural equipment and education
 In 2010, a € 40 million loan was approved in favour of the Municipality of Nicosia (Cyprus), for the partial
financing of sub-project investments for the development, reconstruction and revitalisation of Nicosia’s City
Centre, including the construction of a Community Sports Centre.
“Bankable” projects
 Investment project in Member State
 Setting clear objectives in eligible field
e.g. building, refurbishing health infrastructures
 Establishing total costs and financing plan
50 % of total cost must be financed from non-CEB
resources
 Setting up implementation timetable
to determine project and loan duration
 Defining framework for project implementation
unit responsible for project implementation
“Bankable Projects”
 Financial soundness of borrower
 ensuring repayment of loan
 Typical borrowers
 Member States
 Local and regional authorities
 Financial institutions
 Other public sector entities
 With appropriate guarantees
Trust Accounts
According to the provisions for operating the
Selective Trust Account or those governing other
trust accounts, the CEB may grant interest
subsidies and donations for the purpose of
financing investment projects or technical
assistance activities.
Example: €200 K donation for a project to improve
maternal, prenatal and pediatric care in Moldova.
Project cycle
Completion
Ex post evaluation
Monitoring & disbursements
Negotiation of loan agreement
Approval by the AC
Appraisal
Identification
Project cycle
 Presentation of the project by the Ministry
of Foreign Affairs, together with a letter of
intent
 The borrower may be assisted by CEB staff in the
presentation
 Appraisal:
 Opinion on social and political eligibility
(Secretary General in Strasbourg)
 Technical and financial appraisal (CEB)
 Global and final recommendation (CEB)
Project cycle
 Approval by the Administrative Council
 Monitoring and disbursements
 In accordance with the contracts and the work
progress
 Completion report
 Required at the end of the project
 Ex post evaluation
 Impact and sustainability of the project in order to
assess performance and quality
Loan terms
 Rate




: fixed or variable, based on CEB’s
cost of funds (AAA)+modest margin
Length : up to 15 years with a possible
grace period
Amount : up to 50%* of total project cost
Currency : according to borrower’s needs and
CEB’s funds available
Guarantee: Member State, local authority, first
class financial institution
* Up to 90% in the CEB's target countries
Further information:
www.coebank.org
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