At the Ukraine Recovery Conference on 11 June 2024 Council of Europe Development Bank (CEB) Governor Carlo Monticelli and the Minister of Finance of Ukraine Serhii Marchenko signed a €100 million loan agreement on project “HOME: Compensation for destroyed residential properties,” supporting the mechanism established by the Government to address targeted and urgent housing needs.
The Russian Federation’s full-scale invasion of Ukraine has caused significant civilian casualties and damage to infrastructure, taking a severe human, social and economic toll. Housing continues to be one of the sectors most impacted by the war, with over 10% of the total housing stock in Ukraine either damaged or destroyed, affecting close to two million households.
Responding to urgent housing needs, the Government of Ukraine has established a mechanism to provide compensation to the owners of residential properties destroyed by the war. The Ministry for Communities, Territories and Infrastructure Development of Ukraine will be in charge of the implementation of the project.
“I am delighted to sign the first lending agreement between the CEB and the Government of Ukraine. This is just the beginning. The CEB, as the social development bank of Europe, is committed to supporting Ukraine’s long-term development and social cohesion, which are essential components of recovery and reconstruction. I look forward to continuing to work on the priorities identified by the Government by leveraging the CEB’s mission, expertise, and resources for the benefit of the Ukrainian people,” said CEB Governor Carlo Monticelli.
“Russia’s full-scale war has caused more than US$50 billion in damage to Ukraine’s housing sector. The HOME project will support the affected citizens in returning to a normal life as soon as possible. We are extremely grateful to the CEB for its ongoing support and solidarity with Ukraine. The further implementation and development of projects to support the social sector will contribute to sustainable social development and recovery,” commented Serhii Marchenko, Ukraine’s Minister of Finance.
“In less than a year after Ukraine joined the CEB, we are already starting two important social projects financed by the Bank. This demonstrates the Bank’s trust in Ukraine as a partner and commitment to support us in the face of the constant challenges of a full-scale war. I am convinced that our further cooperation will contribute to the successful implementation and development of new financial and loan programs in the social sector,” said Olga Zykova, Deputy Finance Minister and member of the CEB’s Administrative Council.
Nataliia Kozlovska, Deputy Minister for Communities, Territories and Infrastructure Development of Ukraine, stated: “The start of the cooperation with the Council of Europe Development Bank offers to the Ukrainian citizens the confidence that their call for justice has been heard. As a result of the agreement signed today, more than two thousand families whose homes were destroyed will be able to receive compensation and restore their homes.”
Under HOME, priority rights are reserved for the most vulnerable individuals and families, including combatants, persons with disabilities and large families. More than 2 000 families are expected to have a new home with the help of CEB financing.
Following the signature of the loan agreement, the CEB and the Ministry for Communities, Territories and Infrastructure Development of Ukraine signed a joint statement to collaborate and partner in the pursuit of joint projects targeted at urgent housing needs.
Acknowledging the importance of HOME in supporting the reintegration of Ukrainian citizens in the country, the Bank will provide additional grant resources from its trust funds to further enhance the impact of the compensation mechanism under the project.
