The Governing Board of the Council of Europe Development Bank (CEB) approved today the CEB’s new Strategic Framework 2023-2027 and an historic capital increase.
“The historic decision of our Member States to strengthen the CEB’s capital base is a clear vote of confidence in its special role in the international financial architecture and a testimony of strong shareholders’ support”, said Governor Carlo Monticelli at the conclusion of the meeting.
A succession of global crises brought on by the COVID-19 pandemic and Russia’s aggression in Ukraine have torn at the social fabric on which all European countries depend for prosperity, well-being and confidence. These crises give extra urgency to the unique mission of the CEB of promoting social cohesion through the financing of social investment that serves vulnerable people.
Against this background, the Bank’s new five-year Strategic Framework sets a path for the CEB to initiate activities in Ukraine, continue to assist migrants and their host communities as well as address other social challenges across Europe.
To underpin and consolidate the Bank’s operations, the Governing Board also approved an overall capital increase of a maximum of €4.25 billion. For the first time in the CEB’s history, the paid-in capital increase, amounting to €1.20 billion, will be financed through cash contributions from Member States. Once the process is completed, the CEB’s subscribed capital will increase from €5.48 billion up to €9.73 billion, while the paid-in capital will increase from €0.61 billion up to €1.81 billion. The capital increase subscription period will run until the 31st of December 2023.
Set up in 1956, the CEB (Council of Europe Development Bank) has 42 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, AAA with Standard & Poor's, outlook stable, AA+ with Fitch Ratings, outlook positive and AAA* with Scope 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.