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EUR 130 Million CEB Loan - for Public Investments 

Date

2009 08 26

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Vilnius, August 26. The Ministry of Finance has signed the agreement with the Council of Europe Development Bank (CEB) for the long-term loan of EUR 130 million to Lithuania to co-finance public investments in social infrastructure development projects.

Lithuania will have to repay the loan to the CEB within the period of 15 years. The loan will be granted in tranches by setting a particular interest rate for each tranche. This year it is planned to disburse about EUR 30 million with the interest rate of 4,7 per cent. The amount will be transferred to the State Treasury in the nearest future.

These funds will be used for co-financing construction or renovation of buildings of cultural, health, education, sport institutions – more than 60 projects (total value of which – EUR 258.3 million), which are included into the Public Investment Programme 2009-2011.

“The loan of the Council of Europe Development Bank granted under particularly attractive conditions testifies that international financial institutions trust the policy pursued by the Government of Lithuania.The Ministry of Finance is continuously looking for ways and measures how to offset a negative effect of the economic crisis in the country under the most favourable conditions. The loan will allow to secure the planned public capital investments, the benefit of which will be also conceived by construction sector and labour market”, - said Minister of Finance Ingrida Šimonytė.

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The Council of Europe Development Bank is the only European development bank orienting its activities exclusively to social area: projects co-financed by the Bank’s loans aim to promote social integration, protect the population of the most vulnerable groups of the society, pursue sustainable development and improve living conditions in urban and rural areas. This institution contains 40 members of the Council of Europe, and Lithuania belongs to the so called ‘target group’ countries.

Lithuania is the member of the CEB since 1996. In our country the following three projects co-financed by the Bank were implemented on behalf of the government: establishment of rehabilitation centres for elderly people, people with disabilities and abandoned children; renovation of buildings for educational purposes and higher schools; construction of the Special Care Home “Tremtinių namai” (‘Deportees House’) in the framework of the Government’s Programme for providing the accommodation for returning deportees.

The CEB has also issued loans to commercial banks operating in Lithuania to co-finance social projects related to creating new jobs and preserving viable work places.

 

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