Ukraine and the Council of Europe's Development Bank sign the largest loan agreement since the start of war: EUR 200 million to support internally displaced persons
As part of the URC2025 Ukraine Recovery Conference taking place in Rome today, Ukraine's Minister of Social Policy Oksana Zholnovych and the Governor of the Council of Europe's Development Bank (EBRD) Carlo Monticelli signed a loan agreement to the tune of EUR 200 million. This is by far the largest amount of financial support provided by the CEB to Ukraine, thereby providing assistance for the Government's program for supporting internally displaced persons.
Ensuring the protection and relief of internally displaced persons is one of the key priorities of the Ministry of Social Policy of Ukraine. As of today, about 4.6 million IDPs have been registered.
"Millions of Ukrainians were forced to flee their homes because of the war. Behind the numbers are stories of loss, resilience and the struggle for a decent recovery. And our duty is to be there for them and support them on this path. The state is not just responding to the crisis - we are building systemic solutions to ensure that every person who has fled their homes receives timely, targeted assistance and has the opportunity to return to an active, dignified life in a new community. The scale of the challenge is enormous, and the budgetary possibilities are limited in the context of war. That is why we are grateful to the CEB for strengthening the system that allows people to feel that they are not left alone," said Oksana Zholnovych, Minister of Social Policy.
The CEB funds will be used to support the government's assistance program, which provides housing and basic means for living for 1.2 million displaced people across the country. The EUR 200 million EBRD loan is in line with Ukraine's State Policy Strategy on Internal Displacement, adopted in August 2023 with the support of international partners, including the Council of Europe. The strategy aims to address the housing, employment and social needs of people who have been forced to leave their homes.
“The needs of vulnerable populations, in particular those who have been forced to flee their homes, remain one of the most pressing social challenges facing Ukraine today,” said Carlo Monticelli, Governor of the Council of Europe Development Bank. “With this loan, the Council of Europe Development Bank is proud to contribute to the efforts of the Government of Ukraine to provide vital support to these groups in this difficult period.”
In parallel, in order to respond to psychosocial needs at the community level, on July 9, the Council of Europe Development Bank signed a grant agreement with the Ukrainian Catholic University (UCU) in partnership with the Ministry of Social Policy to expand the Resilience Building Service, an innovative Ukrainian model for providing psychosocial support and mental health services at the community level.
The EUR 550,000 grant from the CEB's Ukraine Solidarity Fund will provide training for 600 first-line social workers, develop practical tools, including a field guide for professionals, and launch a nationwide information campaign on available services. The program will prioritize IDPs, as well as veterans, families with children and people with disabilities.
The loan agreement signed today, as well as the grant support provided earlier, are important elements of the Council of Europe Development Bank's comprehensive commitment to strengthen support for internally displaced persons in Ukraine. They are aimed at contributing to the efforts of the Government of Ukraine to overcome the social consequences of the war and lay the foundations for an inclusive and sustainable recovery.