Council of Europe Development Bank grants €100 million loan to Ukraine for first time

The Council of Europe Development Bank (CEB) has approved a €100 million loan to the Ministry of Health of Ukraine to finance the recovery of the healthcare infrastructure destroyed by the war and meet urgent needs.

Source: Press service of the Council of Europe on Friday, reported by European Pravda

Details: This is the Bank's first lending operation in Ukraine after Kyiv's accession on 15 June 2023.

The Council of Europe Development Bank loan will support the Health Enhancement And Lifesaving (HEAL) project, a US$500 million framework project developed by the World Bank in cooperation with the Ukrainian authorities to bring together development partners. 

The World Bank has already approved a US$100 million loan and a US$20 million grant to kick-start the project.

Quote from CEB Governor Carlo Monticelli: "Today marks a significant milestone in our cooperation with Ukraine for the country’s reconstruction. Our first loan to the Ministry of Health focuses on restoring and improving access to essential health services, including mental health, and represents an important step toward a resilient recovery for the people of Ukraine."  

More details: The CEB funding will allow the Ministry of Health to strengthen primary healthcare by supporting mobile teams that provide essential healthcare services in war-affected regions of the country, as well as in remote areas. 

The project will also finance the refurbishment of hospital buildings and help meet new urgent healthcare needs, including those related to mental health.

In the long term, the project will increase the resilience of Ukraine's healthcare sector through targeted investments in the eHealth system and the introduction of new functions for sustainable and innovative healthcare delivery.

Background: The Ministry of Health said the Russian Federation's aggression against Ukraine had caused approximately US$2.5 billion in damage to the healthcare infrastructure. 

Ukraine's accession to the Council of Europe Development Bank came less than a year after it officially applied for membership in June 2022.

At the end of 2022, the governments of the Council of Europe's shareholder countries agreed to increase the Bank's capital to help members cope with the crisis created by the war in Ukraine.

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