With €200 million to support IDPs, Ukraine and the CEB sign their largest loan agreement since the start of the war

On the sidelines of the Ukraine Recovery Conference (URC 2025) in Rome, the Minister of Social Policy of Ukraine, Oksana Zholnovych, and Carlo Monticelli, Governor of the Council of Europe Development Bank (CEB), signed a €200 million loan agreement. This loan, which is the largest provided by the CEB to Ukraine to date, will support the government’s assistance programme for internally displaced persons.

On the sidelines of the Ukraine Recovery Conference (URC 2025) in Rome today, Minister of Social Policy of Ukraine Oksana Zholnovych, and Carlo Monticelli, Governor of the Council of Europe Development Bank (CEB), signed a €200 million loan agreement. This marks the largest amount of financial support ever provided by the CEB to Ukraine.

Protecting and supporting internally displaced persons (IDPs) remains one of the key priorities of the Ministry of Social Policy. Currently, around 4.6 million IDPs are officially registered in Ukraine.

“Millions of Ukrainians have been forced to leave their homes due to the war. Behind the numbers are stories of loss, resilience, and the struggle to rebuild with dignity. We must stand by people on this journey. The Government of Ukraine is focused not only on crisis response, but on sustainable, long-term solutions so that every person who has fled their home receives timely, targeted support and has the opportunity to return to a dignified, active life in a new community. The scale of the challenge is immense, and our wartime budget is limited. That is why we are deeply grateful to the CEB for strengthening the system that ensures people know they are not alone,” said Minister Oksana Zholnovych.

The CEB funds will support a government assistance programme that provides housing and basic means of subsistence to 1.2 million displaced persons across Ukraine. The €200 million CEB loan is aligned with Ukraine’s State Policy Strategy on Internal Displacement, adopted in August 2023 with support from international partners, including the Council of Europe. The strategy outlines a comprehensive approach to addressing the housing, employment, and social needs of displaced populations.

“The needs of vulnerable people, including those forced to flee their homes,remain among the most pressing social challenges facing Ukraine today,” said CEB Governor Carlo Monticelli. “With this loan, the Council of Europe Development Bank is proud to contribute to the Government of Ukraine’s efforts to provide vital support to these groups in this difficult time.”

In parallel, to address psychosocial needs at the community level, the CEB signed a grant agreement on 9 July with the Ukrainian Catholic University (UCU) in partnership with the Ministry of Social Policy to support the development of the Resilience Service — an innovative Ukrainian model for delivering psychosocial support and mental health services within communities.

The grant, funded through a €550,000 contribution from the CEB’s Ukraine Solidarity Fund, will train 600 frontline social workers, develop practical tools including a field guide for practitioners, and launch a national awareness campaign on available MHPSS services. The programme will prioritise vulnerable groups including IDPs, veterans, families with children, and persons with disabilities.

The signed loan agreement, together with the earlier grant support, represents a key element of the Council of Europe Development Bank’s comprehensive commitment to enhancing protection for internally displaced persons in Ukraine. These efforts aim to support the Government of Ukraine in addressing the social consequences of the war and laying the foundation for an inclusive and resilient recovery.

Tags: