CEB signs €50 million loan agreement with Thüringer Aufbaubank to finance municipal investments and MSMEs

The Governor of the Council of Europe Development Bank (CEB), Rolf Wenzel, signed a €50 million loan agreement with Thüringer Aufbaubank(TAB) to finance social investments in Thuringia aimed at the modernization of municipal infrastructure and to support micro, small and medium-sized enterprises (MSMEs).

Faced with challenges such as a declining, aging population and public infrastructure in need of modernization, Thuringia has made it a priority to improve living conditions in urban and rural areas, particularly for young people, and to support job creation.

The CEB loan to TAB, which is state-owned, will contribute to Thuringia’s regional social investment plan. More specifically, the funds will support municipal projects in health, education and other public infrastructures, such as the modernization of the road network and energy efficiency measures. The municipalities with access to this line of credit will also benefit from technical advice provided by Thuringia’s Energy and Green Tech Agency on how to maximize the environmental benefits of their investments.

In addition, the CEB funds will provide a credit line to MSMEs in a wide range of sectors, including in manufacturing, trade and retail services. They will be used for the financing of the businesses’ needs in terms of fixed assets and productive equipment, such as the purchase of machinery, vehicles, IT and office equipment, and the renovation, construction or acquisition of buildings or land.

The loan is expected to make an important contribution to the social development of Thuringia, benefiting the wider community and boosting job creation and preservation in the region. The agreement was signed at TAB headquarters in Erfurt. Signing on behalf of the TAB was Mr Matthias Wierlacher, Chief Executive Officer, as well as two Members of the Board, Mr Eckhard Hassebrock and Mr Michael Schneider.

Original source: CEB
Published on 5 December 2018