CEB signs €200 million loan agreement to mitigate COVID-19 impact in Estonia

The Council of Europe Development Bank (CEB) and Estonia’s Ministry of Finance have signed a €200 million loan agreement to support the government’s efforts to mitigate the negative effects of the COVID-19 crisis.

The agreement focuses on support measures for local authorities as well as for micro-, small and medium-sized enterprises (MSMEs). A part of the loan is dedicated to financing COVID-19 thematic research and development.

Specifically, the financing will help local authorities to cover the costs associated with COVID-19 prevention and mitigation measures and ensure the continuity of essential public services.

In addition, the funds will support grant and working capital programmes implemented by the state-owned Foundation Enterprise Estonia and the Rural Development Foundation for the benefit of Estonian MSMEs impacted by the crisis.

The Governor of the CEB, Rolf Wenzel, said: “We are pleased to be able to support Estonia in its efforts to mitigate COVID-19 damage and stimulate the economy, and help it on the path to recovery from the current crisis. The CEB has so far approved close to €3 billion for measures taken in response to the COVID-19 pandemic and is committed to further contributing to recovery by supporting inclusive and sustainable investments in CEB member countries.”

Looking ahead, the loan provided by the CEB will also finance key investments in local infrastructure, such as local road improvements and the extension of high-speed internet access to rural areas.

Original source: CEB
Published on 10 June 2020