Council of Europe Development Bank (hereinafter: CEB) is a multilateral development bank under the control of 41 member states that are also members of the Council of Europe (hereinafter: CE), however, it has an independent legal status and a financial autonomy with regard to the Council of Europe. CEB finances its activities mostly from the funds raised in the international capital markets, from its own capital and reserves. It was established in 1956 with an objective of addressing social problems of refugees, displaced persons and migrants in the European countries after the World War II as well as strengthening social cohesion. The main goal of CEB’s operations is the promotion of the principles of CE, i.e. the financing of social projects/programmes in the following areas: (a) strengthening social integration, (b) managing the environment, (c) supporting public infrastructure with a social vocation, and (d) supporting micro, small and medium-sized enterprises (hereinafter: MSME) for the purpose of preserving and creating sustainable jobs.
The co-operation between CEB and HBOR started in 2001. So far, 5 loan contracts have been executed totalling EUR 248 million, by which more than 900 MSME projects and more than 70 infrastructure projects in the public sector have been financed.
In November 2017, CEB approved a loan amounting to EUR 100 million to HBOR for the financing of projects of SMEs, local and regional government and/or other public sector entities in the Republic of Croatia.
The co-operation with CEB is extremely important for HBOR due to access to very favourable funds – in terms of price and maturity, as well as the possibility of financing working capital and investments. In this way, the mentioned co-operation directly affects the Croatian economy, because it enables development of small and medium-sized entrepreneurship, development of new products and technology, improvement of infrastructure, growth of exports, decrease in unemployment and increase in competitiveness.
Projects financed from CEB’s sources must follow the requirements determined in CEB’s Environmental and Social Safeguards Policy and must not in any way violate the provisions of the European Convention on Human Rights (NN 6/1999, NN 8/1999, NN 14/2002, NN 14/2002, NN 1/2006) or the European Social Charter.
HBOR places CEB’s loan funds either directly or in co-operation with commercial banks through the existing loan programmes, about which you can obtain more detailed information in your commercial banks or directly in HBOR.