Council of Europe Development Bank approved new support for Ukraine: €120 million for housing and small business development

On March 16-17, Ukraine’s Deputy Minister of Finance Olga Zykova participated in a joint meeting of the Administrative Council and the Governing Board of the Council of Europe Development Bank (CEB) as Ukraine’s official representative. 

In 2026, the Council of Europe Development Bank marks its 70th anniversary, and the meeting was dedicated to reviewing the Bank’s activities and its social impact across Europe. The CEB also re-elected its Governor, Carlo Monticelli, for a second five-year term.

The CEB Administrative Council approved new decisions aimed at supporting Ukraine’s housing recovery and small business sector:

• EUR 100 million – additional financing for the HOME program, which compensates citizens for housing destroyed as a result of russia’s full-scale aggression.

• EUR 20 million – financing to support microenterprises and small farming households in Ukraine.

Olga Zykova thanked the Bank’s leadership for expanding cooperation in the social sector and for supporting the private sector:

“The decisions approved today represent an important step in further expanding Ukraine’s cooperation with the Council of Europe Development Bank. Additional funding for the HOME program will enable thousands more families whose homes were destroyed by the war to obtain new housing. At the same time, the new CEB’s microfinance program,  which will be implemented by the National Development Institution,  will help support entrepreneurs, internally displaced persons, veterans, and small farmers, for whom access to financing remains critically important. Overall, since Ukraine joined the CEB in 2023, the Bank has already approved more than EUR 670 million in financing directed toward housing recovery, support for the healthcare system, assistance to internally displaced persons, and small business development.”

EUR 100 million for compensation for destroyed housing (HOME Program)

The program is implemented through the state housing certificate mechanism, which allows citizens whose homes were destroyed as a result of russian aggression to receive compensation for purchasing new housing.

Previous stages of the program have already demonstrated significant results:

• EUR 200 million in financing has been fully used;

• 3,774 housing units have been purchased;

• More than 13,000 Ukrainians have received new houses.

As of early 2026, more than 98,000 applications have been submitted for compensation for destroyed housing, highlighting the scale of the need for housing reconstruction.

The additional funding will support around 3,000 more families and extend the implementation of the program until June 30, 2028.

EUR 20 Million to Support Microenterprises and Small Farming Households

The program will be implemented through the Business Development Fund (National Development Institution), which will provide financing through partner banks and credit unions.

The program aims to expand access to financing for businesses that face limited access to loan resources due to the war.

The program’s financing package includes: EUR 20 million CEB loan; EUR 4.6 million EU investment grant under the Ukraine Investment Framework; EUR 230,000 in technical assistance; EUR 3 million CEB grant to cover foreign exchange risks.

The program is designed to support entrepreneurs affected by the war, including internally displaced persons, veterans, women entrepreneurs, youth, persons with disabilities, small farming households.

It is expected that at least 50% of the EUR 20 million financing will be directed to vulnerable groups, while 30% of investments will support energy-efficient and sustainable projects.

During the meeting, the Bank’s leadership and representatives of member states reaffirmed their unwavering support for Ukraine and confirmed their intention to further develop cooperation with Ukraine to support its recovery, economic growth, and improved living standards for citizens.

Additional information

In June 2023, Ukraine became the 43rd member state of the Council of Europe Development Bank. On November 7 of the same year, the President of Ukraine appointed Olha Zykova as the country’s official representative to the Bank’s Administrative Council.