# EDGAR Filing Document

**Accession Number:** 0001472246
**File Stem:** 0001104659-26-033772
**Filing Date:** 2026-3
**Character Count:** 400871
**Document Hash:** 09ea4b42a3968e22e0fc96f45f3b38fa
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-26-033772.hdr.sgml**: 20260324

**ACCESSION NUMBER**: 0001104659-26-033772

**CONFORMED SUBMISSION TYPE**: 18-K

**PUBLIC DOCUMENT COUNT**: 10

**CONFORMED PERIOD OF REPORT**: 20251231

**FILED AS OF DATE**: 20260324

**DATE AS OF CHANGE**: 20260324

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Council of Europe Development Bank
- **CENTRAL INDEX KEY:** 0001472246
- **STANDARD INDUSTRIAL CLASSIFICATION:** FOREIGN GOVERNMENTS [8888]
- **ORGANIZATION NAME:** International Corp Fin
- **EIN:** 000000000
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 18-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 333-164460
- **FILM NUMBER:** 26785396

**BUSINESS ADDRESS:**
- **STREET 1:** 55, AVENUE KLEBER
- **CITY:** PARIS
- **STATE:** I0
- **ZIP:** 75116
- **BUSINESS PHONE:** 01133147555500

**MAIL ADDRESS:**
- **STREET 1:** 55, AVENUE KLEBER
- **CITY:** PARIS
- **STATE:** I0
- **ZIP:** 75116

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 18-K**

***For Foreign Governments and Political Subdivisions Thereof***

**ANNUAL REPORT**

**of**

**COUNCIL OF EUROPE DEVELOPMENT BANK**

(*Name of Registrant*)

**Date of end of last fiscal year: December 31, 2025**

**SECURITIES REGISTERED\*<br> (As of the close of the fiscal year)**

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**Title of Issue** | &nbsp;&nbsp;**Amount as to<br> Which Registration<br> is Effective** | &nbsp;&nbsp;**Names of <br> Exchanges on<br> Which Registered** |
| &nbsp;&nbsp;N/A | &nbsp;&nbsp;N/A | &nbsp;&nbsp;N/A |

---

**Name and address of person authorized to receive notices<br> and communications from the Securities and Exchange Commission:**

**KRYSTIAN CZERNIECKI**

**Sullivan & Cromwell LLP**

**51 rue La Boétie**

**75008 Paris**

**France**

\* The registrant files annual reports on Form 18-K on a voluntary basis.

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
| [EXPLANATORY NOTE](#a_001) | [1](#a_001) |
| [FORM 18-K](#a_002) | [1](#a_002) |
| [EXHIBIT INDEX](#a_003) | [4](#a_003) |
| [SIGNATURE](#a_004) | [5](#a_004) |

---

[EXHIBIT 1 — SCHEDULE OF FUNDED DEBT AS OF DECEMBER 31, 2025](tm269258d1_ex-1.htm)

[EXHIBIT 2 — FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED DECEMBER 31, 2025](tm269258d1_ex-2.htm)

[EXHIBIT 3 — DESCRIPTION OF THE REGISTRANT](tm269258d1_ex-3.htm)

[EXHIBIT 4 — CONSENT OF DELOITTE & ASSOCIÉS](tm269258d1_ex-4.htm)

[EXHIBIT 5 — ARTICLES OF AGREEMENT OF THE ISSUER](tm269258d1_ex-5.htm)

**EXPLANATORY NOTE**

This annual report on Form 18-K for the fiscal year ended December 31, 2025 is filed by Council of Europe Development Bank (the "CEB" or the "Bank"), a multilateral development bank with a social mandate governed by the Third Protocol to the General Agreement on Privileges and Immunities of the Council of Europe of March 6, 1959 (the "Protocol"), by its Articles of Agreement as amended (the "Articles") and by regulations issued pursuant to the Articles. This annual report on Form 18-K, as subsequently amended, is intended to be incorporated by reference into any future prospectus filed by the CEB with the Securities and Exchange Commission.

In this annual report, references to "€", "euro" and "EUR" are to the single European currency of the Member States of the European Union participating in the euro. References to "U.S. dollars", "$" or "USD" are to United States dollars.

**FORM 18-K**

*The information set forth below is to be furnished:*

*1.* *In respect of each issue of securities of the registrant registered, a brief statement as to:* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(a)* *The general effect of any material modifications, not previously reported, of the rights of the holders of such securities.* 

Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(b)* *The title and the material provisions of any law, decree or administrative action, not previously reported, by reason of which the security is not being serviced in accordance with the terms thereof.* 

Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(c)* *The circumstances of any other failure, not previously reported, to pay principal, interest, or any sinking fund or amortization installment.* 

Not applicable.

*2.* *A statement as of the close of the last fiscal year of the registrant giving the total outstanding of:* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(a)* *Internal funded debt of the registrant. (Total to be stated in the currency of the registrant. If any internal funded debt is payable in a foreign currency, it should not be included under this paragraph (a), but under paragraph (b) of this item.)* 

Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(b)* *External funded debt of the registrant. (Totals to be stated in the respective currencies in which payable. No statement need be furnished as to intergovernmental debt.)* 

See Exhibit 1.

*3.* *A statement giving the title, date of issue, date of maturity, interest rate and amount outstanding, together with the currency or currencies in which payable, of each issue of funded debt of the registrant outstanding as of the close of the last fiscal year of the registrant.* 

See Exhibit 1.

*4.* *(a)* *As to each issue of securities of the registrant which is registered, there should be furnished a breakdown of the total amount outstanding, as shown in Item 3, into the following:* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(1)* *Total amount held by or for the account of the registrant.* 

Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(2)* *Total estimated amount held by nationals of the registrant (or if registrant is other than a national government by the nationals of its national government); this estimate need be furnished only if it is practicable to do so.* 

Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(3)* *Total amount otherwise outstanding.* 

Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(b)* *If a substantial amount is set forth in answer to paragraph (a)(1) above, describe briefly the method employed by the registrant to reacquire such securities.* 

Not applicable.

*5.* *A statement as of the close of the last fiscal year of the registrant giving the estimated total of:* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(a)* *Internal floating indebtedness of the registrant. (Total to be stated in the currency of the registrant.)* 

None.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(b)* *External floating indebtedness of the registrant. (Total to be stated in the respective currencies in which payable.)* 

See Exhibit 1.

*6.* *Statement of the receipts, classified by source, and of the expenditures, classified by purpose, of the registrant for each fiscal year of the registrant ended since the close of the latest fiscal year for which such information was previously reported. These statements should be so itemized as to be reasonably informative and should cover both ordinary and extraordinary receipts and expenditures; there should be indicated separately, if practicable, the amount of receipts pledged or otherwise specifically allocated to any issue registered, indicating the issue.* 

See Exhibit 2.

*7.* *(a)* *If any foreign exchange control, not previously reported, has been established by the registrant (or if the registrant is other than a national government, by its national government), briefly describe the effect of any such action, not previously reported.* 

None.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(b)* *If any foreign exchange control previously reported has been discontinued or materially modified, briefly describe the effect on any such action, not previously reported.* 

Not applicable.

*This annual report comprises:*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(a)* *The cover page and pages numbered 1 to 5 consecutively.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(b)* *The following exhibits:* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) SCHEDULE OF FUNDED DEBT AS OF DECEMBER 31, 2025

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED DECEMBER 31, 2025

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) DESCRIPTION OF THE REGISTRANT

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) CONSENT OF DELOITTE & ASSOCIÉS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) ARTICLES OF AGREEMENT OF THE ISSUER

This annual report is filed subject to the Instructions for Form 18-K for Foreign Governments and Political Subdivisions Thereof.

**EXHIBIT INDEX**

---

| | |
|:---|:---|
| &nbsp;&nbsp;**Exhibit<br> Number** | &nbsp;&nbsp;**Description** |
| &nbsp;&nbsp;[1.](tm269258d1_ex-1.htm) | &nbsp;&nbsp;[SCHEDULE OF FUNDED DEBT AS OF DECEMBER 31, 2025](tm269258d1_ex-1.htm) |
| &nbsp;&nbsp;[2.](tm269258d1_ex-2.htm) | &nbsp;&nbsp;[FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED DECEMBER 31, 2025](tm269258d1_ex-2.htm) |
| &nbsp;&nbsp;[3.](tm269258d1_ex-3.htm) | &nbsp;&nbsp;[DESCRIPTION OF THE REGISTRANT](tm269258d1_ex-3.htm) |
| &nbsp;&nbsp;[4.](tm269258d1_ex-4.htm) | &nbsp;&nbsp;[CONSENT OF DELOITTE & ASSOCIÉS](tm269258d1_ex-4.htm) |
| &nbsp;&nbsp;[5.](tm269258d1_ex-5.htm) | &nbsp;&nbsp;[ARTICLES OF AGREEMENT OF THE ISSUER](tm269258d1_ex-5.htm) |

---

**SIGNATURE**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this annual report to be signed on its behalf by the undersigned, thereunto duly authorized, at Paris, France on March 24, 2026.

---

| | |
|:---|:---|
| COUNCIL OF EUROPE DEVELOPMENT BANK | COUNCIL OF EUROPE DEVELOPMENT BANK |
| By: | /s/ CARLO MONTICELLI |
| Name: | Carlo Monticelli |
| Title: | Governor |

---

## Ex-1

**Exhibit 1**

Summary Schedule of Funded Debt as of December 31, 2025

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Currency** | **Issues** | **Interest %** | **Maturities** | **Initial<br> amount in<br> currency of<br> borrowing<br> (in millions)** | **Initial<br> amount in<br> equivalent<br> in millions<br> of euros<sup>(1)</sup>** | **Amount<br> outstanding<br> in millions<br> of euros<sup>(2)</sup>** |
| Euros | 44 | 0.000% - 3.168% | 2026 – 2035 | 19700 | 19700 | 19700 |
| U.S. dollars | 7 | 0.875% - 4.625% | 2026 – 2030 | 8000 | 7318 | 6809 |
| Pounds sterling | 12 | 0.750% - 4.375% | 2026 – 2028 | 2150 | 2522 | 2464 |
| Australian dollars | 7 | 2.450% - 5.137% | 2027 – 2038 | 1580 | 971 | 899 |
| Hong Kong dollars | 15 | 1.740% - 4.370% | 2026 – 2029 | 5600 | 642 | 612 |
| Canadian dollars | 1 | 4.570% | 2027 | 300 | 207 | 186 |
| Swiss francs | 1 | 1.625% | 2029 | 200 | 205 | 215 |
| Norwegian krone | 2 | 1.990% - 3.700% | 2027 – 2029 | 2000 | 188 | 169 |
| Turkish lira | 5 | 25.000% - 29.000% | 2026 – 2028 | 2600 | 129 | 52 |
| Swedish krona | 1 | 3.160% | 2028 | 650 | 57 | 60 |
| New Zealand dollars | 1 | 2.715% | 2029 | 55 | 33 | 27 |
| Chinese Yuan | 3 | 0.002% - 0.003% | 2027 - 2028 | 3400 | 435 | 413 |
| **Total** | **99** |  |  |  | 32408 | 31605 |

---

(1) The equivalent in euro is computed using the exchange rate at trade date.

(2) The equivalent in euro is computed using the exchange rate as of December 31, 2025.

Schedule of Annual Amortization of Funded Debt Outstanding as of December 31, 2025<br> (in millions of Euro<sup>(1)(2)</sup>)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Currency** | **2026** | **2027** | **2028** | **2029** | **2030** | **2031 and<br> after** | **Total** |
| Euros | 2350 | 2525 | 2700 | 2150 | 2100 | 7875 | 19700 |
| U.S. dollars | 1702 | 851 | 1702 | 1277 | 1277 | 0 | 6809 |
| Pounds sterling | 1433 | 688 | 344 | 0 | 0 | 0 | 2464 |
| Australian dollars | 0 | 142 | 0 | 390 | 313 | 54 | 899 |
| Hong Kong dollars | 44 | 377 | 164 | 27 | 0 | 0 | 612 |
| Swiss francs | 0 | 0 | 0 | 215 | 0 | 0 | 215 |
| Canadian dollars | 0 | 186 | 0 | 0 | 0 | 0 | 186 |
| Norwegian krone | 0 | 84 | 0 | 84 | 0 | 0 | 169 |
| Turkish lira | 11 | 30 | 10 | 0 | 0 | 0 | 52 |
| Swedish krona | 0 | 0 | 60 | 0 | 0 | 0 | 60 |
| New Zealand dollars | 0 | 0 | 0 | 27 | 0 | 0 | 27 |
| Chinese Yuan | 0 | 292 | 122 | 0 | 0 | 0 | 413 |
| **Total** | 5540 | 5176 | 5101 | 4169 | 3689 | 7929 | 31605 |

---

(1) The equivalent in euro is computed using the exchange rate as of December 31, 2025.

(2) Excluding accrued interest and value adjustment of debt securities hedged by derivatives.

## Ex-2

Exhibit 2

**Council of Europe Development Bank**

55, Avenue Kléber<br> 75116 Paris

**Independent Auditor's Report on the Financial Statements**

Year ended December 31st, 2025

---

| | |
|:---|:---|
| ![](tm269258d1_ex-2img001.jpg) | Deloitte & Associés<br> 6 place de la Pyramide<br> 92908 Paris-La Défense Cedex<br> France<br> Téléphone : + 33 (0) 1 40 88 28 00<br> www.deloitte.fr |
|  | Adresse postale : |
|  | TSA 20303 |
|  | 92030 La Défense Cedex |

---

**Council of Europe Development Bank**

55, Avenue Kléber<br> 75116 Paris

**Independent Auditor's Report on the Financial Statements**

Year ended December 31st, 2025

To the Governor of the Council of Europe Development Bank

**Opinion**

We have audited the accompanying annual financial statements of the Council of Europe Development Bank which comprise the balance sheet as at December 31, 2025, and the income statement, the statement of other comprehensive income, the statement of changes in equity and the statement of cash flows for the year then ended, and notes comprising a summary of significant accounting policies and other explanatory information as set out in notes A to U.

In our opinion, the accompanying annual financial statements present fairly, in all material respects, and give a true and fair view of, the assets and liabilities and the financial position of the Bank as at December 31, 2025, the results of its operations and its cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union.

Société par actions simplifiée au capital de 2 201 424 €

Société d'Expertise Comptable inscrite au Tableau de I'Ordre d'lle-de-France

Société de Commissariat aux Comptes inscrite à la Compagnie Régionale de Versailles et du Centre

572 028 041 RCS Nanterre

TVA : FR 02 572 028 041

Une entité du réseau Deloitte

![](tm269258d1_ex-2img001.jpg)

**Basis for Opinion**

***Audit Framework***

We conducted our audit in accordance with International Standards on Auditing (ISA). We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Our responsibilities under those standards are further described in the *"Auditor's Responsibilities for the Audit of the Financial Statements"* section of our report.

***Independence***

We are independent of the Bank in accordance with the International Ethics Standards Board for Accountants (IESBA), and we have fulfilled our other ethical responsibilities in accordance with these requirements.

**Other Matter**

The financial statements of the Bank for the year ended December 31, 2024, were audited by another auditor who expressed an unmodified opinion on those statements on March 11, 2025.

**Key Audit Matters**

We inform you of the key audit matters relating to risks of material misstatement that, in our professional judgment, were of most significance in our audit of the financial statements of the current period, as well as how we addressed those risks.

These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

***Valuation of financial assets, financial liabilities and derivatives classified as level 2 and 3 under the IFRS 13***

---

| | |
|:---|:---|
| **Risk identified** | The Council of Europe Development Bank holds on its balance sheet a significant amount of financial assets and financial liabilities (including derivatives) with fair value of 37 986 thousands of euros and 34 018 thousands of euros, respectively, at December 31, 2025.<br>For the purposes of measurement in accordance with IFRS 13, financial instruments are grouped into three different levels on the basis of observability of inputs used in the fair value measurement. Levels 2 and 3 include financial instruments valued on the basis of valuation models whose significant parameters are or are not observable on the market, as the case may be (33 275 thousands of euros of financial assets and 5 470 thousands of euros of financial liabilities valued at levels 2 and 3 as at December 31, 2025 - see notes C, D and E to the financial statements). The measurement of the fair value of Level 2 and Level 3 financial instruments is therefore based on valuation techniques that involve a significant amount of judgment as to the choice of methodologies and data used: |

---

2 l Council of Europe Development Bank l Independent Auditor's Report on the Financial Statements l Year ended December 31st, 2025

![](tm269258d1_ex-2img001.jpg)

---

| | |
|:---|:---|
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;– determination of unobservable market valuation parameters;<br> – use of internal valuation models;<br> – estimation of additional valuation adjustments to take into account certain market, counterparty or liquidity risks.<br>We considered that financial instruments classified as Level 2 and 3 in the fair value hierarchy were a key element of the audit because of the materiality of the exposures and the use of judgment in determining fair value, especially for some financial instruments whose valuation is volatile in the current uncertain economic context. |
| **Our response** | We have reviewed the internal control systems governing the valuation of securities and derivative instruments and the review of the process for determining the fair value hierarchy. |
|  | We tested the controls that we considered relevant for our audit, in particular those relating to: |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;– independent verification of the valuation parameters,<br> – determination of the main valuation adjustments and corrections made. |
|  | We have performed these procedures with the assistance of our valuation experts, with whom we have also carried out independent valuation work involving the examination, based on samples, of the assumptions, methodologies and models used to estimate the main valuation adjustments. |
|  | The impact of the current economic environment on the valuation of level 2 and 3 financial instruments was taken into account in our work, with particular attention to the estimates used. |
|  | We also examined the main existing margin call spreads and the losses and/or gains on sales of instruments to determine the appropriateness of the Bank's valuations. |
|  | Finally, we examined the disclosures relating to the valuation of financial instruments published in the notes to the financial statements. |

---

**Other information**

Management is responsible for the other information. The other information comprises the information included in the Council of Europe Development Bank Annual Report but does not include the financial statements and our auditor's report thereon.

Our opinion on the financial statements does not cover the other information, and we do not and will not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge obtained during the audit, or otherwise appears to be materially misstated.

3 l Council of Europe Development Bank l Independent Auditor's Report on the Financial Statements l Year ended December 31st, 2025

![](tm269258d1_ex-2img001.jpg)

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

**Responsibilities of Management and Those Charged with Governance for the Financial Statements**

Management is responsible for the preparation and fair presentation of the financial statements in accordance with International Financial Reporting Standards as adopted by the European Union, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Bank's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless it is expected to liquidate the Bank or to cease operations.

Those charged with governance are responsible for overseeing the Bank's financial reporting process and monitoring the effectiveness of the internal control and risk management systems, as well as the internal audit, as regards the procedures relating to the preparation and processing of accounting and financial information.

The financial statements were approved by the Governor for transmission to the Administrative Council and the Governing Board.

4 l Council of Europe Development Bank l Independent Auditor's Report on the Financial Statements l Year ended December 31st, 2025

![](tm269258d1_ex-2img001.jpg)

**Auditor's Responsibilities for the Audit of the Financial Statements**

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.

Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISA will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

In accordance with International Standards on Auditing (ISA), our role as external auditor does not consist in guaranteeing the viability or quality of management of the audited entity.

As part of an audit conducted in accordance with ISA, the auditor exercises professional judgment throughout the audit and furthermore:

Identifies and assesses the risks of material misstatement of the financial statements, whether due to fraud or error, designs and performs audit procedures responsive to those risks, and obtains audit evidence considered to be sufficient and appropriate to provide a basis for his opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control;

Obtains an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for expressing an opinion on the effectiveness of the internal control;

– Evaluates the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management in the financial statements;

Assesses the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Bank's ability to continue as a going concern. This assessment is based on the audit evidence obtained up to the date of his audit report. However, future events or conditions may cause the Bank to cease to continue as a going concern. If the auditor concludes that a material uncertainty exists, there is a requirement to draw attention in the audit report to the related disclosures in the financial statements or, if such disclosures are not provided or inadequate, to modify the opinion expressed therein;

– Evaluates the overall presentation of the financial statements and assesses whether these statements represent the underlying transactions and events in a manner that achieves fair presentation.

5 l Council of Europe Development Bank l Independent Auditor's Report on the Financial Statements l Year ended December 31st, 2025

![](tm269258d1_ex-2img001.jpg)

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit as well as the results of our audit. We also report, if any, significant deficiencies in internal control regarding the accounting and financial reporting procedures that we have identified.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Paris-La Défense, March 4<sup>th</sup>, 2026

The independent auditor

Deloitte & Associés

Marjorie BLANC LOURME

6 l Council of Europe Development Bank l Independent Auditor's Report on the Financial Statements l Year ended December 31st, 2025

FINANCIAL STATEMENTS 2025

**Table of contents**

---

| | |
|:---|:---|
| **FINANCIAL STATEMENTS** | **2** |
| &nbsp;&nbsp;About the CEB | 2 |
| &nbsp;&nbsp;Balance sheet | 3 |
| &nbsp;&nbsp;Income statement | 4 |
| &nbsp;&nbsp;Statement of comprehensive income | 5 |
| &nbsp;&nbsp;Statement of changes in equity | 5 |
| &nbsp;&nbsp;Statement of cash flows | 6 |
| **NOTES TO THE FINANCIAL STATEMENTS** | **7** |
| &nbsp;&nbsp;NOTE A - Summary of principal accounting methods applied by the Bank | 7 |
| &nbsp;&nbsp;NOTE B - Risk management | 18 |
| &nbsp;&nbsp;NOTE C - Financial instruments at fair value through profit or loss and hedging derivative financial instruments | 39 |
| &nbsp;&nbsp;NOTE D - Financial assets and liabilities | 40 |
| &nbsp;&nbsp;NOTE E - Market value measurement of financial instruments | 41 |
| &nbsp;&nbsp;NOTE F - Offsetting financial assets and financial liabilities | 42 |
| &nbsp;&nbsp;NOTE G - Financial assets at fair value through equity and at amortised cost | 43 |
| &nbsp;&nbsp;NOTE H - Tangible and intangible assets | 48 |
| &nbsp;&nbsp;NOTE I - Other assets and other liabilities | 48 |
| &nbsp;&nbsp;NOTE J - Financial liabilities at amortised cost | 49 |
| &nbsp;&nbsp;NOTE K - Social Impact Account | 52 |
| &nbsp;&nbsp;NOTE L - Provisions for risks and charges | 53 |
| &nbsp;&nbsp;NOTE M - Capital | 55 |
| &nbsp;&nbsp;NOTE N - Interest margin | 57 |
| &nbsp;&nbsp;NOTE O - Segment information | 58 |
| &nbsp;&nbsp;NOTE P - Net gains or losses from financial instruments at fair value through profit or loss | 59 |
| &nbsp;&nbsp;NOTE Q - General operating expenses | 59 |
| &nbsp;&nbsp;NOTE R - Cost of risk | 59 |
| &nbsp;&nbsp;NOTE S - Financing commitments given or received | 61 |
| &nbsp;&nbsp;NOTE T - Contingent liabilities and other significant disclosures | 61 |
| &nbsp;&nbsp;NOTE U - Post-Balance sheet events | 61 |

---

FINANCIAL STATEMENTS 2025

**FINANCIAL STATEMENTS**

Prepared in compliance with IFRS adopted by the European Union.

**About the CEB**

The Council of Europe Development Bank (CEB) is a multilateral development bank with an exclusively social mandate from its 43 member countries. The CEB finances investment projects and provides technical assistance in social sectors such as education, health and affordable housing, while focusing on the needs of vulnerable people, as well as on the social dimensions of climate change and the environment. Borrowers include governments, local and regional authorities, public and private banks, non-profit organisations and others. The CEB, which has a triple-A credit rating, funds itself through international capital markets. In addition, the CEB receives funds from donors to complement its activities.

The CEB was originally established as a resettlement fund in 1956 by eight of the 15-member states that made up the Council of Europe at the time. The CEB is Europe's oldest multilateral development bank and is a legally and financially separate entity from the Council of Europe.

For more about the CEB, visit

**coebank.org/en/about**

FINANCIAL STATEMENTS 2025

**Balance sheet**

---

| | | |
|:---|:---|:---|
|  | <br>&nbsp;&nbsp;**31/12/2025** | € thousand<br>&nbsp;&nbsp;**31/12/2024** |
| **Assets** |  |  |
| Cash in hand, balances with central banks | &nbsp;&nbsp;504 820 | &nbsp;&nbsp;608 615 |
| Financial instruments at fair value through profit or loss C | &nbsp;&nbsp;88 176 | &nbsp;&nbsp;589 286 |
| Hedging derivative financial instruments C | &nbsp;&nbsp;1 597 502 | &nbsp;&nbsp;1 507 482 |
| Financial assets at fair value through equity G | &nbsp;&nbsp;2 990 486 | &nbsp;&nbsp;3 291 324 |
| Financial assets at amortised cost G |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans | &nbsp;&nbsp;22 771 841 | &nbsp;&nbsp;22 301 631 |
| &nbsp;&nbsp;&nbsp;&nbsp;Advances | &nbsp;&nbsp;7 092 814 | &nbsp;&nbsp;6 872 787 |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt securities | &nbsp;&nbsp;2 926 544 | &nbsp;&nbsp;2 338 292 |
| Tangible and intangible assets H | &nbsp;&nbsp;71 882 | &nbsp;&nbsp;59 798 |
| Other assets I | &nbsp;&nbsp;994 233 | &nbsp;&nbsp;1 044 070 |
| **Total assets** | &nbsp;&nbsp;**39 038 298** | &nbsp;&nbsp;**38 613 285** |
| **Liabilities and equity** |  |  |
| **Liabilities** |  |  |
| Financial instruments at fair value through profit or loss C | &nbsp;&nbsp;912 666 | &nbsp;&nbsp;270 851 |
| Hedging derivative financial instruments C | &nbsp;&nbsp;1 021 312 | &nbsp;&nbsp;1 446 332 |
| Financial liabilities at amortised cost J |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Amounts owed to credit institutions and to customers | &nbsp;&nbsp;63 108 | &nbsp;&nbsp;98 251 |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt securities in issue | &nbsp;&nbsp;31 370 852 | &nbsp;&nbsp;30 873 212 |
| Other liabilities I | &nbsp;&nbsp;426 069 | &nbsp;&nbsp;818 786 |
| Social Impact Account K | &nbsp;&nbsp;56 891 | &nbsp;&nbsp;50 144 |
| Provisions for risk and charges L | &nbsp;&nbsp;313 152 | &nbsp;&nbsp;336 277 |
| **Total liabilities** | &nbsp;&nbsp;**34 164 050** | &nbsp;&nbsp;**33 893 853** |
| **Equity** |  |  |
| Capital M |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Subscribed | &nbsp;&nbsp;9 622 868 | &nbsp;&nbsp;9 622 868 |
| &nbsp;&nbsp;&nbsp;&nbsp;Uncalled | &nbsp;&nbsp;(7 856 618) | &nbsp;&nbsp;(7 856 618) |
| &nbsp;&nbsp;&nbsp;&nbsp;Called | &nbsp;&nbsp;1 766 250 | &nbsp;&nbsp;1 766 250 |
| General reserve | &nbsp;&nbsp;2 987 601 | &nbsp;&nbsp;2 875 299 |
| Net profit | &nbsp;&nbsp;122 250 | &nbsp;&nbsp;124 303 |
| Total capital, general reserve and net profit | &nbsp;&nbsp;4 876 101 | &nbsp;&nbsp;4 765 852 |
| Gains or losses recognised directly in equity | &nbsp;&nbsp;(1 853) | &nbsp;&nbsp;(46 420) |
| **Total equity** | &nbsp;&nbsp;**4 874 248** | &nbsp;&nbsp;**4 719 432** |
| **Total liabilities and equity** | &nbsp;&nbsp;**39 038 298** | &nbsp;&nbsp;**38 613 285** |

---

FINANCIAL STATEMENTS 2025

**Income statement**

---

| | | | |
|:---|:---|:---|:---|
|  | <br>&nbsp;&nbsp;Notes | <br>&nbsp;&nbsp;**2025** | € thousand<br>&nbsp;&nbsp;**2024** |
| &nbsp;&nbsp;Interest and similar income |  | &nbsp;&nbsp;1 036 206 | &nbsp;&nbsp;1 429 306 |
| &nbsp;&nbsp;Interest expenses and similar charges |  | &nbsp;&nbsp;(834 014) | &nbsp;&nbsp;(1 229 293) |
| &nbsp;&nbsp;**Interest margin** | N | &nbsp;&nbsp;**202 192** | &nbsp;&nbsp;**200 013** |
| &nbsp;&nbsp;Net gains or losses from financial instruments at fair value through profit or loss | P | &nbsp;&nbsp;(13 619) | &nbsp;&nbsp;(40) |
| &nbsp;&nbsp;Net gains from financial assets at fair value through equity |  | &nbsp;&nbsp;59 | &nbsp;&nbsp;59 |
| &nbsp;&nbsp;Commissions (income) |  | &nbsp;&nbsp;141 | &nbsp;&nbsp;1 011 |
| &nbsp;&nbsp;Commissions (expenses) |  | &nbsp;&nbsp;(2 213) | &nbsp;&nbsp;(2 251) |
| &nbsp;&nbsp;**Net banking income** |  | &nbsp;&nbsp;**186 560** | &nbsp;&nbsp;**198 792** |
| &nbsp;&nbsp;General operating expenses | Q | &nbsp;&nbsp;(62 739) | &nbsp;&nbsp;(58 450) |
| &nbsp;&nbsp;Depreciation and amortisation charges of tangible and intangible assets | H | &nbsp;&nbsp;(7 521) | &nbsp;&nbsp;(7 026) |
| &nbsp;&nbsp;**Gross operating income** |  | &nbsp;&nbsp;**116 300** | &nbsp;&nbsp;**133 316** |
| &nbsp;&nbsp;Cost of risk | R | &nbsp;&nbsp;5 950 | &nbsp;&nbsp;(9 013) |
| &nbsp;&nbsp;**Net profit** |  | &nbsp;&nbsp;**122 250** | &nbsp;&nbsp;**124 303** |

---

FINANCIAL STATEMENTS 2025

**Statement of comprehensive income**

---

| | | |
|:---|:---|:---|
|  | <br>&nbsp;&nbsp;**2025** | € thousand<br>&nbsp;&nbsp;**2024** |
| &nbsp;&nbsp;**Net profit** | &nbsp;&nbsp;**122 250** | &nbsp;&nbsp;**124 303** |
| &nbsp;&nbsp;Items that may be reclassified to income statement | &nbsp;&nbsp;7 073 | &nbsp;&nbsp;(27 828) |
| &nbsp;&nbsp;Changes in value of debt securities at fair value through equity | &nbsp;&nbsp;24 280 | &nbsp;&nbsp;(26 438 |
| &nbsp;&nbsp;Changes in value of hedging derivative financial instruments | &nbsp;&nbsp;(17 207) | &nbsp;&nbsp;(1 390) |
| &nbsp;&nbsp;Items that will not be reclassified to income statement | &nbsp;&nbsp;37 493 | &nbsp;&nbsp;(18 136) |
| &nbsp;&nbsp;Changes in actuarial differences related to the pension scheme | &nbsp;&nbsp;35 603 | &nbsp;&nbsp;(16 022) |
| &nbsp;&nbsp;Changes in actuarial differences related to the other post-employment benefits | &nbsp;&nbsp;1 890 | &nbsp;&nbsp;(1 983) |
| &nbsp;&nbsp;Changes in value of equity instruments |  | &nbsp;&nbsp;(131) |
| &nbsp;&nbsp;**Total other elements of comprehensive income** | &nbsp;&nbsp;**44 566** | &nbsp;&nbsp;**(45 964)** |
| &nbsp;&nbsp;**Comprehensive income** | &nbsp;&nbsp;**166 816** | &nbsp;&nbsp;**78 339** |

---

**Statement of changes in equity**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  |  | |  |  |  | | &nbsp;&nbsp;€ thousand |
|  | &nbsp;&nbsp;**Capital and reserves** | &nbsp;&nbsp;**Capital and reserves** | &nbsp;&nbsp;**Capital and reserves** | | &nbsp;&nbsp;**Gains or losses recognised** | &nbsp;&nbsp;**Gains or losses recognised** | &nbsp;&nbsp;**Gains or losses recognised** | | |
|  |  |  |  | | &nbsp;&nbsp;**directly in equity** | &nbsp;&nbsp;**directly in equity** | &nbsp;&nbsp;**directly in equity** | | |
|  |  |  |  | | &nbsp;&nbsp;Hedging |  |  | | |
|  |  |  |  | | &nbsp;&nbsp;derivative |  |  | | |
|  | &nbsp;&nbsp;Called | &nbsp;&nbsp;Reserves |  | | &nbsp;&nbsp;financial | &nbsp;&nbsp;Actuarial | &nbsp;&nbsp;Equity | | |
|  | &nbsp;&nbsp;capital | &nbsp;&nbsp;and result | &nbsp;&nbsp;**Total** | <br>&nbsp;&nbsp;Debt<br>&nbsp;&nbsp;securities at<br>&nbsp;&nbsp;fair value<br>&nbsp;&nbsp;through<br>&nbsp;&nbsp;equity | &nbsp;&nbsp;instruments | &nbsp;&nbsp;differences | &nbsp;&nbsp;instruments | <br>&nbsp;&nbsp;**Total** | <br>&nbsp;&nbsp;**Total**<br>&nbsp;&nbsp;**equity** |
| &nbsp;&nbsp;**Equity as at 1 January 2024** | &nbsp;&nbsp;624 275 | &nbsp;&nbsp;2 895 299 | &nbsp;&nbsp;**3 519 574** | &nbsp;&nbsp;5 764 | &nbsp;&nbsp;40 965 | &nbsp;&nbsp;(48 142) | &nbsp;&nbsp;957 | &nbsp;&nbsp;**(456)** | &nbsp;&nbsp;**3 519 118** |
| &nbsp;&nbsp;Capital increase | &nbsp;&nbsp;1 141 975 |  | &nbsp;&nbsp;1 141 975 |  |  |  |  |  | &nbsp;&nbsp;1 141 975 |
| &nbsp;&nbsp;Allocation of 2023 profit |  | &nbsp;&nbsp;(20 000) | &nbsp;&nbsp;(20 000) |  |  |  |  |  | &nbsp;&nbsp;(20 000) |
| &nbsp;&nbsp;Net profit 2024 |  | &nbsp;&nbsp;124 303 | &nbsp;&nbsp;124 303 |  |  |  |  |  | &nbsp;&nbsp;124 303 |
| &nbsp;&nbsp;Changes in value of assets and liabilities recognised directly in equity |  |  |  | &nbsp;&nbsp;(26 438) | &nbsp;&nbsp;(1 390) | &nbsp;&nbsp;(18 005) | &nbsp;&nbsp;(131) | &nbsp;&nbsp;(45 964) | &nbsp;&nbsp;(45 964) |
| &nbsp;&nbsp;**Equity as at 31 December 2024** | &nbsp;&nbsp;1 766 250 | &nbsp;&nbsp;2 999 602 | &nbsp;&nbsp;**4 765 852** | &nbsp;&nbsp;(20 674) | &nbsp;&nbsp;39 575 | &nbsp;&nbsp;(66 147) | &nbsp;&nbsp;826 | &nbsp;&nbsp;**(46 420)** | &nbsp;&nbsp;**4 719 432** |
| &nbsp;&nbsp;Capital increase |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Allocation of 2024 profit |  | &nbsp;&nbsp;(12 000) | &nbsp;&nbsp;(12 000) |  |  |  |  |  | &nbsp;&nbsp;(12 000) |
| &nbsp;&nbsp;Net profit 2025 |  | &nbsp;&nbsp;122 250 | &nbsp;&nbsp;122 250 |  |  |  |  |  | &nbsp;&nbsp;122 250 |
| &nbsp;&nbsp;Changes in value of assets and liabilities recognised directly in equity |  |  |  | &nbsp;&nbsp;24 280 | &nbsp;&nbsp;(17 207) | &nbsp;&nbsp;37 493 |  | &nbsp;&nbsp;44 567 | &nbsp;&nbsp;44 567 |
| &nbsp;&nbsp;**Equity as at 31 December 2025** | &nbsp;&nbsp;1 766 250 | &nbsp;&nbsp;3 109 851 | &nbsp;&nbsp;**4 876 101** | &nbsp;&nbsp;3 606 | &nbsp;&nbsp;22 369 | &nbsp;&nbsp;(28 654) | &nbsp;&nbsp;826 | &nbsp;&nbsp;**(1 853)** | &nbsp;&nbsp;**4 874 248** |

---

FINANCIAL STATEMENTS 2025

**Statement of cash flows**

---

| | | | |
|:---|:---|:---|:---|
| **For the year ended 31 December** | **For the year ended 31 December** | <br>&nbsp;&nbsp;**2025** | € thousand<br>&nbsp;&nbsp;**2024** |
|  | Net profit | &nbsp;&nbsp;122 250 | &nbsp;&nbsp;124 303 |
| +/- | Depreciation charges of tangible and intangible assets | &nbsp;&nbsp;7 521 | &nbsp;&nbsp;7 026 |
| +/- | Impairment allowance | &nbsp;&nbsp;(6 002) | &nbsp;&nbsp;9 070 |
| +/- | Net loss/net profit from investing operations | &nbsp;&nbsp;(9 211) | &nbsp;&nbsp;(2 479) |
| +/- | Change in interest receivable | &nbsp;&nbsp;(32 245) | &nbsp;&nbsp;(50 002) |
| +/- | Change in interest payable | &nbsp;&nbsp;6 562 | &nbsp;&nbsp;39 197 |
| +/- | Other movements | &nbsp;&nbsp;33 129 | &nbsp;&nbsp;17 904 |
|  | Total of non-monetary items included in the result | &nbsp;&nbsp;(246) | &nbsp;&nbsp;20 716 |
| + | Reimbursements related to operations with credit institutions and customers | &nbsp;&nbsp;5 596 089 | &nbsp;&nbsp;3 633 251 |
|  | Disbursements related to operations with credit institutions and customers | &nbsp;&nbsp;(6 940 614) | &nbsp;&nbsp;(6 444 082) |
| + | Reimbursements related to other operations affecting financial assets or liabilities | &nbsp;&nbsp;2 826 203 | &nbsp;&nbsp;4 240 911 |
|  | Disbursements related to other operations affecting financial assets or liabilities | &nbsp;&nbsp;(2 842 861) | &nbsp;&nbsp;(4 089 756) |
| +/- | Cash flows related to operations affecting non-financial assets or liabilities | &nbsp;&nbsp;(30 731) | &nbsp;&nbsp;(17 738) |
|  | Net cash flows from assets and liabilities resulting from operating activities | &nbsp;&nbsp;(1 391 914) | &nbsp;&nbsp;(2 677 414) |
|  | **Total net cash flows from operating activities (a)** | &nbsp;&nbsp;**(1 269 910)** | &nbsp;&nbsp;**(2 532 395)** |
| + | Reimbursements related to debt securities at amortised cost | &nbsp;&nbsp;338 385 | &nbsp;&nbsp;130 933 |
|  | Disbursements related to debt securities at amortised cost | &nbsp;&nbsp;(910 063) | &nbsp;&nbsp;(660 957) |
| +/- | Cash flows related to tangible and intangible assets | &nbsp;&nbsp;(19 663) | &nbsp;&nbsp;(10 524) |
|  | **Total net cash flows from investing operations (b)** | &nbsp;&nbsp;**(591 341)** | &nbsp;&nbsp;**(540 548)** |
| +/- | Cash flows from or to member states | &nbsp;&nbsp;296 768 | &nbsp;&nbsp;521 434 |
| + | Reimbursements related to debt securities in issue at amortised cost | &nbsp;&nbsp;7 309 154 | &nbsp;&nbsp;10 117 305 |
|  | Disbursements related to debt securities in issue at amortised cost | &nbsp;&nbsp;(6 047 782) | &nbsp;&nbsp;(8 051 422) |
|  | **Total net cash flows from financing operations (c)** | &nbsp;&nbsp;**1 558 140** | &nbsp;&nbsp;**2 587 317** |
|  | **Effect of changes in foreign exchange rates on cash and cash equivalents (d)** | &nbsp;&nbsp;**(136 322)** | &nbsp;&nbsp;**34 580** |
|  | **Net increase/(decrease) in cash and cash equivalents (a)+(b)+(c)+(d)** | &nbsp;&nbsp;**(439 433)** | &nbsp;&nbsp;**(451 046)** |
|  | **Cash and cash equivalents at the beginning of the financial year** | &nbsp;&nbsp;**4 515 985** | &nbsp;&nbsp;**4 967 031** |
|  | &nbsp;&nbsp;&nbsp;Cash in hand, balances with central banks | &nbsp;&nbsp;608 810 | &nbsp;&nbsp;1 034 428 |
|  | &nbsp;&nbsp;&nbsp;Advances repayable on demand and term deposits with credit institutions | &nbsp;&nbsp;3 907 175 | &nbsp;&nbsp;3 932 603 |
|  | **Cash and cash equivalents at the end of the financial year** | &nbsp;&nbsp;**4 076 552** | &nbsp;&nbsp;**4 515 985** |
|  | &nbsp;&nbsp;&nbsp;Cash in hand, balances with central banks | &nbsp;&nbsp;504 942 | &nbsp;&nbsp;608 810 |
|  | &nbsp;&nbsp;&nbsp;Advances repayable on demand and term deposits with credit institutions | &nbsp;&nbsp;3 571 610 | &nbsp;&nbsp;3 907 175 |
|  | **Changes in cash and cash equivalents** | &nbsp;&nbsp;**(439 433)** | &nbsp;&nbsp;**(451 046)** |

---

FINANCIAL STATEMENTS 2025

**NOTES TO THE FINANCIAL STATEMENTS**

**NOTE A - Summary of principal accounting methods applied by the Bank**

**1.** **Accounting standards** 

**1.1 Applicable accounting standards**

The Bank's separate accounts are prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union (EU).

The entry into force of standards and amendments of IFRS standards with mandatory application as of 1 January 2025 had no effect on the Bank's financial statements as at 31 December 2025. The Bank did not implement any new standards, amendments or interpretations adopted by the EU, for which implementation was optional in 2025.

**New standards and amendments applicable as of 1 January 2025**

· *Amendments to IAS 21 "The Effects of Changes in Foreign Exchange Rates"* 

These amendments clarify the conditions for converting from one currency into another, as well as the methods for determining the exchange rate of a non-convertible currency. They also specify the information to be disclosed in the notes to the financial statements for non-convertible currencies.

The provisions of these amendments have no impact on the Bank's financial statements.

**New IFRS standards and amendments applicable as of 1 January 2026**

· *Amendments to IFRS 9 "Financial Instruments" and IFRS 7 "Financial Instruments: Disclosures" relating to the classification and measurement of financial instruments* 

The following amendments were published by the IASB on 30 May 2024 and are applicable as of 1 January 2026. These amendments:

- clarify the date of recognition and derecognition for certain financial assets and liabilities, introducing a new exception for certain financial liabilities settled through an electronic payment system,

clarify and provide further guidance on assessing whether a financial asset meets the criteria for cash flows that are solely payments of principal and interest on the principal amount outstanding (SPPI),

require disclosure in the notes to the financial statements for financial instruments with contractual terms that may alter cash flows upon the occurrence or non-occurrence of a contingent event, such as those linked to environmental, social, and governance (ESG) objectives, and

- update disclosure requirements for equity instruments designated at fair value through other comprehensive income.

These amendments are not expected to have an impact on the Bank's financial statements.

· *IFRS 18 "Presentation and Disclosure in Financial Statements"* 

This standard, published in April 2024, will replace IAS 1 "Presentation of Financial Statements" as of 1 January 2027.

This standard does not change the recognition rules for assets, liabilities, expenses, or income, nor their measurement, but rather introduces new rules for the presentation of information to be provided in the primary financial statements and in the notes.

The main changes brought by IFRS 18 concern the structuring of the income statement. The standard requires income and expenses to be classified into three new categories (operating, investing, and financing), with mandatory presentation of subtotals for operating profit.

IFRS 18 also requires the disclosure, in the notes to the financial statements, of alternative performance measures defined by the entity's management and used in financial communications (justification for using these measures, calculation method, and reconciliation with the mandatory subtotals set by the standard).

The standard also provides guidance for aggregating and disaggregating quantitative information in the primary financial statements and in the notes.

Work is currently underway to implement this standard at CEB.

· *IFRS 19 Subsidiaries without Public Accountability: Disclosures* 

IFRS 19 applies to entities without public accountability, but whose parent companies prepare consolidated financial statements in accordance with IFRS accounting standards. This standard is effective as of 1 January 2027 and is not expected to affect the Bank's financial statements.

FINANCIAL STATEMENTS 2025

**New Sustainability Reporting Standards**

The CEB has provided an annual account of its approach to sustainability since 2009. The Bank's overall contribution to socially and environmentally sustainable development is reflected in the annual Sustainability Report, as well as in two other reports based on voluntary internationally recognised disclosure frameworks, namely GRI Report (Global Reporting Initiative) and the Task Force on Climate-related Financial Disclosures (TCFD) Report. The GRI Report (or GRI Index) offers an overview of environmental, social and governance (ESG) considerations in the CEB's financing and non-financing services and in its day-to-day functioning and staff management. The report is prepared in accordance with the TCFD recommendations and presents how the Bank manages risks and opportunities linked to climate change.

All reports are available on the Bank's website in a dedicated section "Reporting and ESG ratings".

The Bank is currently reviewing its sustainability reporting framework and plans to report in line with the ISSB Standards, going forward. The International Sustainability Standards Board (ISSB) was established by the IFRS Foundation at COP26 in November 2021. In June 2023, the two initial ISSB standards launched were IFRS S1 (General Requirements for Disclosure of Sustainability-related Financial Information) and IFRS S2 (Climate-related disclosures).

**1.2 Interest rate benchmark reform**

**Reform implementation and implications for the Bank**

Following the cessation of all LIBOR benchmark settings, the Bank implemented the benchmark interest rate reform by migrating from the LIBOR benchmarks to the respective risk-free rates (RFRs), in line with market practice.

The Bank is mainly exposed to the remaining IBORs under certain floating rate loans granted to borrowers and the related hedging swaps.

EURIBOR continues to be published given its compatibility with the EU Benchmarks Regulation and remains the reference rate in the euro area for the foreseeable future.

As most of the Bank's lending takes place in euro, referencing EURIBOR, the discontinuation/unrepresentativeness of LIBOR did not have a material impact on CEB's lending or hedging activity.

The Bank has loans and swaps outstanding that reference BUBOR and STIBOR, which are rates that are expected to continue being published in the foreseeable future and which, like EURIBOR, are deemed compatible with the EU Benchmarks Regulation. CEB keeps itself informed on the development of STIBOR and SWESTR and will consider the approach it would take should there be any market or regulatory guidance to move from STIBOR to SWESTR. However, until now, such a transition appears to be possible solely for the tenor T/N (Tomorrow/Next), whereas CEB's exposure to STIBOR is with respect to three- and six-month STIBOR. CEB will be monitoring the Swedish competent authorities' decisions or recommendations regarding three- and six-month tenors and more broadly, whether the market will wish to converge on specific rates and whether any rates or tenors cease being used (which in any event would need to be formalised by the SFBF as benchmark administrator).

In addition, the Bank has loans and swaps outstanding that reference WIBOR. In December 2024, the Steering Committee of the National Working Group for benchmark reform in Poland selected POLSTR as successor to WIBOR. CEB is operating under the assumption that the conversion deadline will remain the end of 2027, but the Bank is monitoring market developments and regulatory recommendations and will take the necessary steps to replace WIBOR once further details on the recommended conventions are known.

With regards to derivatives, the Bank has adhered to the ISDA 2020 IBOR Fallbacks Protocol, multilaterally amending existing ISDA Master Agreements (including their CSAs) and swaps outstanding under them with all other counterparties that have adhered to the protocol to incorporate IBOR fallback rates. These fallback rates replaced the existing IBORs referred to in these agreements/swaps where a permanent cessation of the publication of an IBOR has occurred. The same fallback rates apply to new swaps via revised definitions that ISDA has published together with the protocol and that CEB's swaps incorporate by reference.

FINANCIAL STATEMENTS 2025

**1.3 Presentation currency**

The presentation currency of the financial statements is the euro (€). The amounts presented in the financial statements and in the notes are in thousands of euro, unless otherwise specified. Due to rounding, the totals in the tables of the financial statements and accompanying notes may not correspond to the sum of the components to the nearest thousand euro.

**2.** **Foreign currency transactions** 

The financial statements are presented in euro.

Monetary assets and liabilities denominated in foreign currencies are translated into euro (CEB's functional currency) at the exchange rate applicable at the end-date of the accounting period. Exchange variations resulting from this translation are accounted for in the Income statement.

Forward currency transactions are valued at market value by using the forward exchange rate applicable for the remaining period for the currency concerned. Spot exchange positions are valued at the spot exchange rate at the end of the accounting period. The resulting exchange differences are recorded in the Income statement.

**3.** **Use of estimates** 

Within the context of IFRS application, the CEB uses estimates to determine the value of its financial instruments, mainly for the valuation of derivative instruments and for determining the credit risk of financial assets and commitments. Except for these aspects, the CEB's nature of operations does not necessitate, in terms of judgement and valuation complexity, significant estimates or defining assumptions in preparing its financial statements. However, economic and demographic assumptions are used to value post-employment social commitments.

**4.** **Financial assets and liabilities** 

Financial instruments represent the contractual rights or obligations to receive or pay cash or other financial assets. The CEB's banking activities are generally contractual in the form of financial instruments that cover a wide range of assets and liabilities, such as loans, debt securities, debt securities in issue and derivatives (swaps, forwards).

In the financial statements, the classification and valuation method of financial assets and liabilities depends on their contractual characteristics as well as the manner in which the CEB manages these financial instruments.

However, this distinction is not applicable to derivative instruments that are always measured in the Balance sheet at fair value, regardless of the purpose of their holding (market activities or hedging transactions).

Financial instruments are recognised on a trade date basis.

**Classification and measurement of financial assets and liabilities**

In accordance with IFRS 9, financial assets and liabilities are classified upon initial recognition in the Balance sheet under three categories (amortised cost, fair value through profit or loss, and fair value through equity) which determine their accounting treatment and subsequent measurement. This classification is based on the characteristics of their contractual cash flows and how the Bank manages its financial instruments (business model).

*Analysis of contractual cash flow characteristics*

The purpose of the analysis of contractual cash flows characteristics is to limit the possibility of recording income from financial assets using the effective interest method only for instruments whose characteristics are similar to those of a basic loan contract, implying a high predictability of the associated cash flows. All other financial assets that do not have such characteristics are measured at fair value through profit or loss, regardless of the business model in which they are held.

Contractual cash flows that represent only repayments of principal and interest payments on outstanding principal are consistent with a basic loan contract (SPPI flows: Solely Payments of Principal and Interest).

In a basic loan contract, interest consists primarily of consideration for the time value of money and for credit risk. All non-basic financial assets are required to be recognised at fair value through profit or loss, regardless of the business model in which they are held.

*Analysis of the model*

The business model represents the way in which instruments are managed to generate cash flows and income. To determine the classification and valuation method of financial assets, it is necessary to distinguish between three business models:

FINANCIAL STATEMENTS 2025

· a model based on collecting contractual cash flows from financial
assets,

· a model based on collecting contractual cash flows from financial
assets and selling these assets and

· a model specific to other financial assets, particularly transaction
assets, in which the collection of contractual cash flows is incidental.

**4.1 Financial assets at amortised cost**

Financial assets are classified at amortised cost if the following two criteria are met: the business model consists of holding the instrument to collect the contractual cash flows ("Held to Collect") and the cash flows consist solely of payments of principal and interest on the principal.

*Business model criteria*

Financial assets are held to collect cash flows related to payments over the lifetime of the instrument.

*Cash flow criteria*

The cash flow criteria is met if the contractual terms of the debt instrument give rise, on specified dates, to cash flows that are solely payments of principal and interest on the principal outstanding. The category "Financial assets at amortised cost" includes loans granted and securities held to collect contractual payments (Treasury bills, government bonds and other debt securities).

*Recognition*

Upon initial recognition, financial assets are accounted for at fair value, including transaction costs directly attributable to the instrument. Subsequently, they are valued at amortised cost, including accrued interest and net of principal and interest repayments during the period. These financial assets are also initially subject to an impairment calculation for expected credit losses (Note R). Interest is calculated using the effective interest rate method determined at the inception of the contract.

In the context of fair value hedging transactions, the carrying amount of the assets is adjusted for gains and losses attributable to the hedged risk, in accordance with IFRS 9.

**4.2 Financial assets at fair value through equity**

**Debt instruments**

Debt instruments are classified at fair value through equity if the following two conditions are met:

*Business model criteria*

Financial assets are held within a business model, the objective of which is achieved by both the collecting of contractual cash flows and the selling of financial assets ("Held to Collect and Sell"). The latter is not an incidental but rather an integral part of the business model.

*Cash flow criteria*

The principles are identical to those applicable to financial assets at amortised cost. Securities that are held to collect contractual cash flows or to be sold and that comply with the cash flow criteria, are mainly classified in this category.

*Recognition*

Upon initial recognition, financial assets are recognised at market value, including transaction costs directly attributable to the transaction. They are subsequently measured at fair value and changes in fair value are recorded in equity under "Gains or losses recognised directly in equity". These financial assets are also subject to a calculation of expected credit losses on the same terms as those applicable to debt instruments at amortised cost. On disposal, changes in value previously recognised in recyclable equity are reclassified to the Income statement. On the other hand, interest is recognised in the Income statement according to the effective interest rate method determined at the beginning of the contract.

In the context of fair value hedging transactions, the carrying amount of the assets is adjusted for gains and losses attributable to the hedged risk, in accordance with IFRS 9.

**Equity instruments**

Investments in equity instruments, such as shares, are classified by option, transaction by transaction, as financial assets at fair value through equity. When shares are sold, changes in value previously recorded in equity are not recognised in the Income statement. Only dividends, provided that they represent a return on investment and not a repayment of capital, are recognised in the Income statement. These instruments are not subject to impairment.

FINANCIAL STATEMENTS 2025

**4.3 Financial assets at fair value through profit or loss**

Financial assets at fair value through profit or loss concern debt instruments not held for trading that do not meet the criteria of the business model "Held to Collect" or "Held to Collect and Sell", or that of cash flows.

These financial instruments are recorded at their market value, the initial transaction costs being directly recognised in the Income statement. At end-date, changes in market value are recorded in the Income statement under "Net gains or losses from financial instruments at fair value through profit or loss".

**4.4 Financial liabilities**

An issued financial instrument or its components are classified as liabilities, in accordance with the economic substance of the legal contract.

Issued financial instruments qualify as debt instruments if there is a contractual obligation for the Bank to settle with their holder.

**Debt securities in issue**

Debt securities in issue are initially recorded at their issuance value, including transaction costs, and are subsequently valued at amortised cost by using the effective interest rate method.

In application of IFRS 9, within the context of fair value hedge transactions, the book value of issued debt is adjusted for the profits or losses relative to the hedged risk.

**4.5 Financing and guarantee commitments**

Financing and financial guarantee commitments that are not recognised as derivative instruments at fair value through profit or loss are presented in Note S relating to commitments given and received. They are depreciated for expected credit losses. These provisions are presented under the heading "Provisions for risks and charges".

Financial guarantee contracts (FGC) are agreements that require the issuer to make specified payments to reimburse the holder for a loss incurred because a specified debtor fails to make payments when due in accordance with the terms of a specified debt instrument. The Bank writes or issues FGC which are not managed on a fair value basis. IFRS 9 requires written or issued FGC to be initially recognised at fair value. The fair value of an FGC issued in a stand- alone arm's length transaction to an unrelated third party is likely equal to the amount of premium received.

For FGC that are not managed on a fair value basis, they are subsequently measured at the higher of the loss allowance determined in accordance with IFRS 9 and the amount initially recognised less, when appropriate, the cumulative amount of income recognised in accordance with IFRS 15.

The Bank purchases or receives credit guarantees on its portfolio (of sovereigns) to minimise credit concentration risk and improve capital ratios. IFRS does not provide specific accounting guidance on purchased FGC.

Where the Bank is the buyer or holder of a transaction (e.g. credit protection or similar activities) that meets the definition of an FGC, it applies judgement to determine whether the FGC is an integral element of the loan (or pool of loans instruments) or should be recognised as a separate contract on the financial statements. When measuring ECLs, IFRS 9 requires that the estimate of expected cash shortfalls shall reflect the cash flows expected from collateral and other credit enhancements that are part (but not limited to those explicitly stated) of the contractual terms and are not recognised separately. Accordingly, when the purchased FGC is deemed integral to the loan, the cashflows expected from the credit protection (or similar activities) and credit enhancements are included in the ECL estimation of the loan and the cost is treated as a transaction cost included in the Effective Interest Rate (EIR). In this case, the cash flow from the purchased FGC is not accounted for as a separate contract on the financial statements.

In the course of its operations, the Bank can enter into exposure exchange agreement (EEA) transactions with other MDBs. The objective of EEAs (refer to Note B) is to reduce concentration risk and improve capital ratios. The EEA transaction is treated as an exchange of two separate FGCs (FGC given and FGC received) and accounted for as follows.

1. Issuer's accounting is applied where CEB issues
 credit guarantees for the sovereign exposures received from the MDB counterparty (i.e. CEB
 acts as a seller of credit protection), and

2. Holder's accounting is applied where CEB purchases
 credit guarantees in relation to the sovereign exposures transferred to the MDB counterparty
 (i.e. CEB acts as a buyer of credit protection).

3. As EEAs are structured to be risk weight and
 notional equivalent at the outset of the relevant transaction, the premium receivable and
 premium payable are deemed equal and are therefore reported on a net basis.

FINANCIAL STATEMENTS 2025

**4.6 Impairment of financial assets at amortised cost and debt instruments at fair value through equity**

In accordance with IFRS 9, the credit risk impairment model is based on expected losses. This model applies to loans and debt instruments classified at amortised cost or at fair value through equity, loan commitments and given financial guarantee contracts that are not recorded at fair value through profit or loss.

**General approach**

The Bank identifies three "stages", each corresponding to a specific situation with respect to the evolution of credit risk of the counterparty since the initial recognition of the asset.

*The 12-month expected credit losses "stage 1":*

At the reporting date, if the credit risk of the financial instrument has not increased significantly since its initial recognition, impairment is recognised for this instrument in an amount equal to the 12-month expected credit losses (resulting from default risks within the next 12 months).

*Full lifetime expected losses for not impaired assets "stage 2":*

The impairment equals the lifetime expected credit losses (at maturity) if the credit risk of the financial instrument has increased significantly since initial recognition without the financial asset being impaired.

*Full lifetime expected losses for impaired assets "stage* 3":

When an asset is impaired, the impairment is also equal to the lifetime expected credit losses at maturity.

This general model is applied to all financial instruments within the scope of the impairment of IFRS 9.

Interest income is calculated on the gross book value for outstanding amounts of stage 1 and stage 2.

For the outstanding amounts within stage 3, interest income is calculated on the basis of the amortised cost balance (i.e. the gross book value adjusted for impairment allowances).

**Default definition**

The definition of default is identical to the definition used by the Basel ratios. Thus, the counterparties are considered to be in default when a payment delay longer than 90 days is noted.

**Impaired financial assets**

A financial asset is impaired and classified as stage 3 when one or more events having a negative impact on the future cash flow of that financial asset have occurred.

At the individual level, an objective indication of impairment includes any observable data relating to the following events: existence of contractual payments more than 90 days past due and the awareness or observation of significant financial difficulties of the counterparty leading to the conclusion of a proven existing risk.

**Significant increase in credit risk**

A significant increase in credit risk can be assessed by considering all reasonable and supportable information and by comparing a financial instrument's risk of default at the end-date with its risk of default at initial recognition.

The assessment of deterioration is based on a comparison of ratings or probabilities of default at initial recognition of financial instruments with those existing at the reporting date.

**Expected losses measurement**

Expected credit losses are defined as an estimate of credit losses (i.e. the present value of cash shortfalls) weighted by the probability of loss occurrence over the expected life of the financial instruments. They are calculated on an individual basis for each exposure.

In practice, for exposures in stages 1 and 2, the expected credit losses are calculated as the Probability of Default (PD) multiplied by the Loss Given Default (LGD) and Exposure at Default (EAD), discounted at the effective interest rate of the exposure. They result from the default risk within the next 12 months (stage 1) or the risk of default over the lifetime till maturity (stage 2).

For exposures classified as stage 3, expected credit losses are calculated as cash flow shortfalls over the lifetime of the instrument, discounted at its effective interest rate. Cash flow shortfalls represent the difference between the contractual cash flows due and the expected cash flows.

The methodology implemented is based on existing concepts and frameworks (in particular the Basel framework).

*Probability of Default (PD)*

The Probability of Default is an estimate of the likelihood of a default over a given time horizon.

The measurement of expected credit losses requires the estimation of both one-year probabilities of default and lifetime probabilities of default at maturity. The one-year PD and the lifetime PD at maturity are point-in-time (PIT) probabilities derived from regulatory PD, based on long-term averages across the cycle, adjusted to reflect current conditions.

FINANCIAL STATEMENTS 2025

Given the absence of internal data with sufficient depth, the CEB uses external suppliers of PD data standardised according to the Bank's counterparty portfolios.

*Loss Given Default (LGD)*

Loss Given Default is the difference between the contractual cash flow and the expected cash flow, discounted at the effective interest rate at the date of default. The LGD is expressed as a percentage of the EAD.

The estimation of expected cash flow includes cash flows from the sale of collateral held or other credit enhancement, if these are included in the contractual terms and are not accounted for separately by the entity, net of the costs of obtaining and selling the collateral.

Given the absence of internal data with sufficient depth, the CEB uses external suppliers of LGD data, standardised according to the Bank's counterparty portfolios, credit enhancements and the "low cycle" effect (PIT).

*Exposure At Default (EAD)*

The Exposure At Default of an instrument is the anticipated outstanding amount owed by the borrower at the time of default. This amount is determined on the basis of the expected payment profile, and takes into account, based on the type of product, the contractual repayment schedule, expected early repayments and expected future drawings on credit agreements.

*Forward-looking information*

The amount of expected credit losses is measured on the basis of probability-weighted scenarios, taking into account past events, current conditions, and reasonable and supportable economic forecasts.

The principles related to forward-looking information when measuring expected credit losses are detailed in Note R - Cost of risk.

**4.7 Cost of risk**

The cost of risk includes impairment allowances and reversals for 12-month expected losses and lifetime expected losses (stage 1 and stage 2) relating to debt instruments accounted for at amortised cost or at fair value through equity, loans commitments and financial guarantee contracts. The cost of risk also includes impairment allowances and reversals for financial assets for which objective evidence of impairment exists (stage 3), write-offs on irrecoverable amounts and amounts recovered from impaired assets.

**4.8 Derivative instruments**

Derivative financial instruments are used by the CEB to manage and hedge the interest rate risk and/or foreign exchange risk of the hedged items. These are hedging derivative financial instruments.

Hedging transactions concern individual items or transactions (micro-hedging transactions).

Their recognition is governed by the standard IFRS 9 on general hedge accounting, or micro-hedging, which replaces IAS 39 "Financial Instruments: Recognition and Measurement".

Derivatives are classified into two categories:

*Transaction derivatives*

Derivative instruments are by default considered to be transaction instruments, unless they can qualify as hedging instruments. They are recorded under the heading "Financial instruments at fair value through profit or loss" on the asset side of the Balance sheet in case of positive market value and on the liability side of the Balance sheet when the market value is negative. Profits or losses are recorded in the Income statement under the heading "Net gains or losses from financial instruments at fair value through profit or loss".

*Derivatives and hedge accounting*

Fair value hedging is used by the Bank to cover in particular the interest rate risk of assets and liabilities with fixed interest rates, for identified financial instruments (loans, debt securities, issues).

Interest rate cash flow hedging is used to hedge items exposed to changes in future cash flows related to a financial instrument recognised in the Balance sheet (floating rate loans, securities or debt). The purpose of this hedging relationship is to hedge against an adverse change in the future cash flows of an item that may affect the Income statement.

In order to qualify a financial instrument as a hedging derivative, the Bank keeps information on the hedge from its initial application. This information specifies the designated asset or liability, the hedged risk, the type of derivative instrument used and the valuation method which will be employed in assessing the retrospective and prospective effectiveness of the hedge.

The hedge must meet all of the hedge effectiveness requirements as defined by IFRS 9; this effectiveness must be ensured from the hedge's initial application and subsequently throughout its lifetime.

In the case of a fair value hedge relationship, derivatives are revalued in the Balance sheet at their fair value, while fair value variations are recorded in the Income statement under the heading "Net gains or losses from financial instruments

FINANCIAL STATEMENTS 2025

at fair value through profit or loss", symmetrically to the revaluation of the instruments hedged for the estimated risk. In the Balance sheet, in the case of a hedging relationship of identified assets or liabilities, revaluation of the hedged item is accounted for in accordance with the classification of the instrument hedged. The impact recorded in the Income statement represents the eventual ineffectiveness of the hedge.

In the case of a cash flow hedge relationship, changes in the fair value of hedging derivative financial instruments are recorded in equity as "Gains or losses recognised directly in equity" for their effective portion, while the ineffective portion is recognised as "Net gains or losses from financial instruments at fair value through profit or loss" in the Income statement. In the case of interest rate derivatives, the accrued interest portion of the derivative financial instrument is recorded in the Income statement under "Interest and similar income or expenses", symmetrically with the interest income or expenses related to the hedged item.

In cases where a hedge is interrupted or it no longer satisfies the effectiveness tests, hedging derivatives are transferred to the trading portfolio and accounted for in accordance with the principles applicable to this category. In the case of interest rate instruments initially identified as hedged, the revaluation amount with respect to these instruments recorded in the Balance sheet is amortised at the effective interest rate for its residual life duration. If the hedged items are no longer recorded in the Balance sheet, particularly due to early redemption, this amount is immediately transferred to the Income statement.

**4.9 Fair value assessment**

The fair value of financial assets and liabilities is composed of their market values and additional value adjustments as required by IFRS 13.

*Market value*

The financial assets and liabilities under categories "Financial instruments at fair value through profit or loss", "Hedging derivative financial instruments" and "Financial assets at fair value through equity" are valued and recorded at their market value. The market value is equivalent to the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm's length transaction.

Market value is determined as follows:

· using quoted prices in an active market and

· applying a valuation technique incorporating:

- mathematical calculation methods based on recognised financial assumptions and

- parameters whose value is determined either by using prices of instruments traded in active markets, or based on statistical estimates or other quantitative methods in the absence of an active market.

On the other hand, derivative instruments (foreign exchange, interest rate and currency swaps) are valued on the basis of commonly-accepted models (discounted cash flow method, Black and Scholes model, interpolation techniques) by using observable parameters.

*Value adjustments*

The valuation adjustments allow integration of the counterparty credit risk and of the Bank's own credit risk within the fair value.

Value adjustment for the risk of the counterparty (Credit Valuation Adjustment — CVA) reflects the risk of the Bank not recovering the full market value from its transactions in case of the default of one of its counterparties.

Value adjustment for own credit risk (Own Credit Adjustment - OCA and Debit Valuation Adjustment — DVA) represents the effect of the CEB's credit risk on valuation of its debt securities in issue and derivative financial liabilities.

These adjustments are calculated counterparty by counterparty and are based on the estimates of default exposures, probabilities of default and recovery rates in case of default.

The Exposure At Default is estimated using a model that quantifies the exposure at risk from the simulation of risk factors. The model considers collateral movements that depend on the characteristics of the Credit Support Annex (CSA) collateral agreement.

The CVA and DVA are recorded under the heading "Financial instruments at fair value through profit or loss" on the asset side of the Balance sheet, in the case of a positive value, and on the liability side of the Balance sheet, when the value is negative. Gains and losses are recognised in the Income statement under "Net gains or losses from financial instruments at fair value through profit or loss".

**4.10 Derecognition of financial assets and liabilities**

*Derecognition of financial assets*

The Bank derecognises all or part of a financial asset either when the contractual rights to the cash flows from the asset expire or when the CEB transfers the contractual rights to receive the cash flows from the asset and substantially all the

FINANCIAL STATEMENTS 2025

risks and rewards of ownership of the asset. If all these conditions are not fulfilled, the Bank retains the asset in its Balance sheet and recognises a liability for the obligation created as a result of the transfer of the asset.

*Derecognition of financial liabilities*

The Bank derecognises all or part of a financial liability when the liability is extinguished in full or in part.

*Repurchase agreements*

Securities temporarily sold under repurchase agreements continue to be recognised in CEB's Balance sheet in their original portfolio. The corresponding liability is recognised at amortised cost under "Financial liabilities at amortised cost".

Securities temporarily acquired under reverse repurchase agreements are not recognised in the Bank's Balance sheet. The corresponding receivable is recognised at amortised cost under "Financial assets at amortised cost".

**5.** **Interest income and expense** 

Interest income and expense are recognised in the Income statement for all financial instruments by using the effective interest rate method.

The effective interest rate is the rate that discounts exactly the estimated future cash payments or receipts through the expected life of the financial instrument to the net book value of the financial asset or liability. This calculation includes commissions paid or received, when similar to interests, transaction charges and all premiums and discounts.

**6.** **Fixed assets** 

Fixed assets recorded in the Bank's Balance sheet include tangible and intangible operating assets and, since 1 January 2019, all leases within the scope of IFRS 16 "Leases" which replaces IAS 17 "Leases".

According to IFRS 16, all leases within the scope of the standard must be recognised in the lessee's Balance sheet. The amount representing the right-of-use of the leased asset during the term of the contract is recognised as a tangible asset (Note **H)** and the amount corresponding to a lease liability is recognised as a liability (Note I).

In the Income statement, the right-of-use is depreciated over the lifetime of the contract and an interest expense is recognised on the lease liability.

Fixed assets are recorded at their purchase price to which directly connected expenses are added.

Depreciation is calculated according to the estimated useful life of the asset expected by the Bank using the straight-line method, the residual value of the asset being deducted from its depreciable basis.

At every end-date, fixed assets are valued at their amortised cost (cost less depreciation and any possible impairment) and if necessary, an accounting adjustment is carried out with respect to the duration of the useful life and the residual value.

**Tangible assets**

The following is the breakdown of the "building" part of the operational premises, every element being depreciated according to its own useful life:

· Main
 works, façade and roofing <sup>(\*)</sup> -

· General and technical installations 10 years

· Fixtures and fittings 10 years

<sup>(\*)</sup> Given the Bank's headquarters' location in the centre of Paris, its residual value is assigned to the component "main works, façade and roofing" which is not subject to depreciation.

Land is not depreciated. The other tangible fixed assets are depreciated according to the following durations:

· Fittings and furniture 10 years

· Vehicles 4 years

· Office and IT equipment 3 years

**Intangible assets**

Intangible assets (IT software) are amortised according to the following durations:

· Application software 5 years

· System software 3 years

· Office software 1 year

FINANCIAL STATEMENTS 2025

**7.** **Post-employment staff benefits** 

The Bank's pension scheme is a defined benefit scheme, funded by contributions made both by the Bank and by the employees. Benefits are calculated on the basis of the number of years of service and a percentage of the basic remuneration of the last year of service.

The other post-employment benefit schemes (health care, fiscal adjustment and termination of service) are likewise defined benefit schemes. During retirement, retired staff members continue to be covered by a medical insurance. This medical coverage is financed by contributions from staff and the Bank. These vary according to the system in which the Bank's staff members find themselves at the time of their retirement. For staff members hired before 1 January 2014, the Bank reimburses 50% of the taxes on the Bank pension they receive.

These schemes represent commitments on the part of the Bank, which are valued and for which provisions are set up. In conformity with IAS 19, actuarial valuations are carried out on these commitments, considering both financial and demographic assumptions. The actuarial gains or losses are recorded in the Balance sheet under the heading "Provisions for risks and charges" by counterparty of "Statement of comprehensive income".

The amount of the provision in relation to these commitments is determined using the projected unit credit actuarial valuation method.

**8.** **Social Impact Account** 

The Social Impact Account (SIA) is used to finance supports in favour of projects complying with CEB objectives and located in eligible countries, as defined by the Administrative Council. The operating principles of the SIA were last revised by Administrative Council Resolution 1666 (2024), approved on 14 November 2024. In particular, new prudential ceilings for loan guarantees were introduced, enabling the Bank to increase the leverage ratio between SIA resources and guaranteed loans while maintaining a conservative exposure to credit risk. In addition, the name of the account, which was Social Dividend Account until then, was changed to better reflect its purpose.

The support financed by the SIA may take the form of technical assistance, grants, interest subsidies and loan guarantees.

**Technical assistance**

Technical assistance shall finance the costs of external experts contracted by the CEB or the beneficiary to support project preparation and implementation, as well as capacity building related to the Bank's sectors of interventions and means of action.

**Grants**

Grants shall finance investment costs of projects, such as expenses related to the construction and upgrading of social infrastructure, and operating costs of projects, such as current expenditures, goods, services, staff dedicated to projects and institutional costs of beneficiaries.

**Interest subsidies**

Interest subsidies shall cover the interest rate differential between the rate usually applied by the Bank and the rate to be paid by borrowers, for every tranche of the loan.

**Loan Guarantees**

Loan guarantees shall compensate the CEB for losses resulting from the default of a borrower on its CEB loan.

Supports financed by the SIA are approved by the Administrative Council of the Bank, except technical assistance up to €300 thousand, which is approved by the Governor.

The SIA is funded mainly by allocations from the Bank's annual profit, decided by the member states.

**9.** **Related parties** 

With respect to IAS 24, the Bank is not a subsidiary of any entity. The financial statements are not affected by related party relationships.

The information concerning Chairpersons, Vice-Chairpersons and Appointed Officials of the Bank is presented in paragraph 10 below.

FINANCIAL STATEMENTS 2025

**10. Compensation for Chairpersons, Vice-Chairpersons and Appointed Officials**

The Articles of Agreement of the CEB provide that the organisation, administration and supervision of the Bank shall be the responsibility of the following bodies:

· Governing Board

· Administrative Council

· Governor

· Auditing Board

The Governing Board and the Administrative Council each consist of a Chairperson and one representative appointed by each member state. The Chairperson of the Governing Board and the Chairperson of the Administrative Council are elected by the Governing Board for a three-year term, renewable once. A Vice-Chairperson is elected among the members of each body. The annual allowances of the Chairpersons and the Vice-Chairpersons are fixed by the Administrative Council for the duration of their terms of office.

The Governor is appointed by the Governing Board for a five-year term and may be re-appointed once. He is assisted by one or more Vice-Governors, who are appointed by the Governing Board, for a five-year term renewable once, upon the Governor's proposal, following an opinion on conformity from the Administrative Council and after consultation with the members of the Governing Board. The emoluments of the Governor and the Vice-Governors are fixed by the Administrative Council, within the framework of the approval of the annual budget of the Bank.

The Governor and Vice-Governors are affiliated to the medical and social coverage as well as to the pension scheme of the CEB. The retirement pension scheme applicable is the same as for staff members, except that Appointed Officials may claim a retirement pension after five years of duty.

The CEB's Chairpersons, Vice-Chairpersons and Appointed Officials do not receive any stock options or any other kind of bonus.

The gross compensation for CEB's Chairpersons, Vice-Chairpersons and Appointed Officials is summarised below:

---

| | | |
|:---|:---|:---|
| <br>&nbsp;&nbsp; | <br>&nbsp;&nbsp;**2025** | € thousand<br>&nbsp;&nbsp;**2024** |
| **Official allowances** <sup>(\*)</sup> |  |  |
| Chairperson of the Administrative Council | &nbsp;&nbsp;45 | &nbsp;&nbsp;45 |
| Vice-Chairperson of the Administrative Council | &nbsp;&nbsp;6 | &nbsp;&nbsp;6 |
| **Emoluments** |  |  |
| Governor Monticelli | &nbsp;&nbsp;460 | &nbsp;&nbsp;448 |
| Vice-Governor Boček | &nbsp;&nbsp;350 | &nbsp;&nbsp;341 |
| Vice-Governor Gaudin | &nbsp;&nbsp;350 | &nbsp;&nbsp;341 |
| Vice-Governor Boehmer | &nbsp;&nbsp;350 | &nbsp;&nbsp;331 |

---

*<sup>(\*)</sup> The principle of official allowances for Chairperson/Vice-Chairperson of the Governing Board has been abolished. For new mandates since the end of 2023, official allowances are no longer paid*

**11.** **Taxation** 

The Third Protocol to the General Agreement on Privileges and Immunities of the Council of Europe states that the Bank's assets, income and other property are exempt from all direct taxes in the Bank's member states.

FINANCIAL STATEMENTS 2025

Due to rounding, the totals in the tables of the financial statements may not correspond to the sum of the components to the nearest thousand euro.

**NOTE B - Risk management**

The primary purpose of risk management is to ensure the Bank's long-term financial sustainability and operational resilience while enabling the CEB to fulfil its social mandate. The Bank thus endeavours to implement international best banking practices by promoting a sound and prudent risk culture across all its business lines.

This note provides information about the Bank's exposure to the main financial risks that arise during the regular course of its business, namely credit risk, interest rate risk, foreign exchange risk, liquidity risk and operational risk. In addition to the "traditional" risks, the CEB recognises the significant role of climate risk by taking a proactive stance against the potential threats posed by climate change. This note also presents the objectives, policies, procedures, limits and controls that provide the CEB with the appropriate tools to identify, assess, monitor, report, mitigate and control such risks.

While the Bank is not subject to member states' regulations, it considers EU directives on banking regulation and recommendations from the Basel Committee on Banking Supervision as the reference for its Risk Management Framework.

In compliance with best banking practices, the CEB regularly reviews its risk and control policies, including its monitoring procedures, to establish a strong risk management culture.

**Risk appetite**

The Bank defines Risk Appetite as the aggregate level and types of risk it is willing to assume within its risk capacity to achieve the objectives set out in its Strategic Framework.

A key instrument for fulfilling the CEB's mandate is lending funds at advantageous rates, which requires raising funds on the capital markets at competitive rates. For that purpose, maintaining a solid credit risk profile remains paramount.

The CEB financial and risk profile is driven by its risk appetite as set out with quantitative and qualitative key indicators and limits under its risk appetite framework.

The Bank's risk management adopts a prudent approach and mitigates risk to ensure long-term financial sustainability. To this end, the Bank has developed and implemented a comprehensive risk management framework to identify, assess, monitor, report, mitigate and control all the risks inherent in the CEB's operations, resulting from both on- and off-Balance sheet transactions.

**Organisation**

The Risk and Control Directorate (R&C) is responsible for implementing the Risk Management Framework, particularly for identifying, monitoring and reporting all risks across the Bank. In co-ordination with other directorates, R&C makes proposals for risk policies and methodologies, supervises their application, ensures overall coherence in risk management and warrants the completeness of risk reporting.

R&C is independent of other operational and business directorates and reports directly to the Governor. R&C units cover the following risk areas: credit risk, market risk - including the Asset & Liability Management (ALM) from a risk angle - and operational risk.

The Finance Directorate is responsible for the operational management of the Asset & Liability risks, including the Bank's liquidity position.

**Decision-making Committees**

The following decision-making committees define and oversee risk management policies in their respective fields. All the committees are chaired by the CEB Governor.

&nbsp;&nbsp;&nbsp;&nbsp;· The **Credit Risk Committee (CRC)** meets weekly and is responsible
for credit decisions related to lending and treasury exposure based on internal credit risk assessments and recommendations.

&nbsp;&nbsp;&nbsp;&nbsp;· The **Asset & Liability Committee (ALCO)** holds
meetings monthly, or more frequently if necessary, to formulate strategic orientations and address on a forward-looking basis interest
rate, foreign exchange rate and liquidity risk arising throughout the Balance sheet.

&nbsp;&nbsp;&nbsp;&nbsp;· The **Committee for Operational Risks & Organisation (CORO)** reviews operational risk issues at the CEB semi-annually and ensures that adequate steps are taken to mitigate, monitor and
control these risks.

FINANCIAL STATEMENTS 2025

**Controlling Bodies**

**Internal Audit (IA)** is a permanent, autonomous entity within the CEB's internal control system. The objective of IA is to provide the Governor and the CEB's controlling bodies with an independent and objective assurance of effective and controlled businesses and operational activities. IA examines whether the CEB's activities and transactions are performed in conformity with existing policies, procedures and best practices, and assesses their associated risks. It also proposes recommendations for potential improvements of CEB's operations.

The **Office of the Chief Compliance Officer (OCCO)** addresses money laundering/financing of terrorism and tax evasion risks and integrity, corruption and fraud issues. OCCO's mission is to protect the Bank from financial and reputational risks, promote ethical business standards and contribute independently to the CEB's effective management of compliance risks. OCCO's core activities are to perform integrity due diligence checks on operations and counterparties, to safeguard the Bank's integrity in its financial and loan operations and to safeguard the integrity and deontology of staff and Collegial Organs arising from failure to comply with the Bank's standards and policies. In addition, OCCO ensures that procurement selection procedures comply with internal rules.

The **Chief Information Security Officer (CISO)** in the Compliance Unit ensures that the CEB's information assets and technologies are adequately protected. The CISO is in charge of defining the security policy, designing the security framework, and identifying, developing, implementing, and maintaining processes across the CEB to reduce information and IT risks. The CISO responds to incidents, establishes appropriate standards and controls, manages security technologies, raises security awareness and ensures that information security policies and procedures are applied.

The **Auditing Board** comprises three representatives from member states appointed on a rotating basis by the CEB's Governing Board for a three-year term (outgoing members act as advisors for an additional year). The Auditing Board examines the Bank's accounts and checks their accuracy. The Auditing Board's report is presented to the Bank's governing bodies when the annual financial statements are submitted for approval. An excerpt of the report is appended to the financial statements.

The **External Auditor** is responsible for auditing the Bank's financial statements according to the International Standards on Auditing (ISAs) issued by the International Auditing and Assurance Standards Board (IAASB), and for overseeing the CEB's internal control and risk management processes. The External Auditor is appointed by the Governing Board for a five-year term – renewable once for a five-year period following a tender procedure – based on the Auditing Board's opinion and recommendations of the Administrative Council. The External Auditor's assessment process is also documented in the Independent auditor's report on the annual financial statements, inter alia.

Furthermore, the Bank is assessed by the three major **credit rating agencies:** Fitch, Moody's and Standard & Poor's, which perform in-depth analyses of the Bank's financial situation and long-term creditworthiness, as well as environmental, social and governance criteria, following an annual rating assignment. Since 2021, the CEB has also been assigned unsolicited credit rating from Scope Ratings.

**Internal and external reporting on risk management**

The Risk & Control Directorate (R&C) evaluates credit risk across the CEB's Loan and Treasury activities and reports weekly to the Credit Risk Committee.

The Finance Directorate reports monthly to the Asset & Liability Committee on interest and exchange rate exposure, as well as on funding and liquidity position.

A Quarterly Report on Risk Management is presented by R&C to the Administrative Council and the Governing Board. It provides the member states with the development of the CEB's exposure to the main types of risks: credit, market, liquidity, operational risks and compliance with the risk appetite framework.

The CEB also publishes a Risk Management Disclosure Report on an annual basis. The report provides details about exposures across different types of risks, the methodologies applied in risk management assessments and their objectives. The report also presents CEB's approach to capital adequacy.

The Bank also provides extensive information to the rating agencies to support their annual assessment. Additionally, the CEB's Financial Report prepared under Form 18-K in connection with the registration statement filed with the U.S. Securities and Exchange Commission also includes information on the Bank's risk management.

Finally, the CEB's Financial Report released at the end of the financial year provides a fair view of the risk management processes and practices in place at the Bank and describes in detail its risk exposure.

FINANCIAL STATEMENTS 2025

**1. CREDIT** **RISK**

**Overview of the assessment process**

Credit risk is the potential loss arising from a bank borrower or counterparty failing to meet its obligations in accordance with agreed terms. The Bank is exposed to credit risk in its lending and treasury activities, as borrowers and treasury counterparties could default on their contractual obligations, or the value of the Bank's investments could become impaired. Credit risk may also materialise in the form of a rating downgrade that may negatively affect the Bank's capital or provisioning against credit losses. Credit risk also covers settlement and pre-settlement risk. Similarly, the collateral risk is considered part of credit risk (collateral is essentially a credit risk mitigation technique). Overall, credit risk is a function of the amount of credit exposure and the borrower's or transaction's credit quality.

**Credit risk identification and assessment**

Credit risk management identifies all potential sources of credit risk inherent in all products and activities arising from the Bank's lending and treasury activities across its Balance sheet and off-Balance sheet operations. The Bank ensures that the risks of new products and activities are subject to adequate risk management procedures and controls before being introduced or undertaken. Credit risk may materialise in the form of rating downgrades, (cross-) default on payment obligations or during the transaction settlement process.

Credit risk assessment is conducted by the Credit Risk Unit (CRU) (R&C Directorate) independently of lending or treasury officers with the aim of providing (i) appropriate checks and balances to ensure that credit is extended in accordance with risk principles and (ii) an independent judgment, uninfluenced by relationships with the borrower or intermediaries. Credit exposure is measured, monitored and controlled daily. Breach of limit, if any, is reported to senior management.

Internal credit ratings result from the Bank's independent, internal credit risk assessment. Internal credit ratings provide an opinion on the ability and willingness of a borrower to pay its obligations in full and on time. They are generally based on a qualitative and quantitative assessment of risk factors and potential scenarios that may ultimately lead to a default situation. Internal credit ratings are assigned to all counterparties at the Finance Directorate and at the Loans & Social Development Directorate. The Bank may use external ratings for specific transactions, products or counterparties, while ensuring a sound understanding of the underlying risk incurred. The internal rating methodologies are regularly reviewed and calibrated. Likewise, the defined limits attributed to each counterparty, which allow the Bank to monitor credit risk arising from its operations, are regularly reviewed.

**Mapping between internal rating and external rating agencies**

---

| | | | |
|:---|:---|:---|:---|
|  | &nbsp;&nbsp;**Internal rating**<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10 | &nbsp;&nbsp;**Moody's**<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Aaa | **S&P / Fitch**<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AAA |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Aa1 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AA+ |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Aa2 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AA |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Aa3 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AA- |
| &nbsp;&nbsp;Investment Grade | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A1 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A+ |
| &nbsp;&nbsp;(I.G.) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A2 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A3 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A- |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Baa1 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BBB+ |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Baa2 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BBB |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Baa3 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BBB- |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ba1 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BB+ |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ba2 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BB |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ba3 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BB- |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B1 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B+ |
| &nbsp;&nbsp;Non-Investment Grade<br> (non-I.G.) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B2 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B |
| &nbsp;&nbsp;Non-Investment Grade<br> (non-I.G.) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B3 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B- |
| &nbsp;&nbsp;Non-Investment Grade<br> (non-I.G.) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Caa1 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CCC+ |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Caa2 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CCC |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Caa3 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CCC- |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.5 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ca | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CC |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C |
| &nbsp;&nbsp;Default | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D |

---

FINANCIAL STATEMENTS 2025

**Credit risk mitigation**

The CEB actively uses credit risk mitigation (CRM) techniques to monitor and mitigate credit risk during the life of transactions. Credit risk mitigation techniques can take the form of a guarantee, collateral, or contractual safeguards (e.g. contractual covenants).

Credit risk mitigation techniques for new transactions are proposed by CRU and subject to the approval of the Credit Risk Committee. Credit risk mitigation techniques for existing transactions are presented to the Credit Risk Committee at the annual counterparty review.

The credit risk of a new project is assessed during the appraisal process and requires approval from the relevant internal committees. All projects are submitted to the Administrative Council for approval.

The Administrative Council establishes an integrated framework for financial operations where the Bank's financial and risk policy is embedded. Within this framework, treasury transactions are assessed by CRU and submitted to the Credit Risk Committee for approval.

Finally, Large Exposure and concentration limits are also defined and reported to the Credit Risk Committee.

**Overall credit risk exposure**

The following table presents the Bank's credit risk exposure as at 31 December 2025 and 31 December 2024, both in:

**A.** the Loans and Social Development Directorate: loans and financing commitments.

**B.** the Finance Directorate: deposits (Nostro and Money Market), securities portfolios and derivatives.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | | | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | |
| <br>&nbsp;&nbsp;€ million | <br>&nbsp;&nbsp;**AAA/AA** | &nbsp;&nbsp;**A/BBB** | &nbsp;&nbsp;**Non-IG** | <br>&nbsp;&nbsp;**Total** | <br>&nbsp;&nbsp;**AAA/AA** | &nbsp;&nbsp;**A/BBB** | &nbsp;&nbsp;**Non-IG** | <br>&nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;Loans | &nbsp;&nbsp;4 313 | &nbsp;&nbsp;15 775 | &nbsp;&nbsp;3 474 | &nbsp;&nbsp;**23 562** | &nbsp;&nbsp;4 897 | &nbsp;&nbsp;15 020 | &nbsp;&nbsp;2 998 | &nbsp;&nbsp;**22 915** |
| &nbsp;&nbsp;Financing commitments | &nbsp;&nbsp;928 | &nbsp;&nbsp;4 427 | &nbsp;&nbsp;1 557 | &nbsp;&nbsp;**6 912** | &nbsp;&nbsp;1 357 | &nbsp;&nbsp;3 880 | &nbsp;&nbsp;1 371 | &nbsp;&nbsp;**6 609** |
| &nbsp;&nbsp;Deposits (Nostro & Money Market) | &nbsp;&nbsp;2 463 | &nbsp;&nbsp;5 081 |  | &nbsp;&nbsp;**7 544** | &nbsp;&nbsp;2 158 | &nbsp;&nbsp;5 245 |  | &nbsp;&nbsp;**7 403** |
| &nbsp;&nbsp;Securities | &nbsp;&nbsp;3 076 | &nbsp;&nbsp;3 003 |  | &nbsp;&nbsp;**6 079** | &nbsp;&nbsp;4 275 | &nbsp;&nbsp;1 430 |  | &nbsp;&nbsp;**5 705** |
| &nbsp;&nbsp;Swap & Forex EAD SA-CCR <sup>1</sup> | &nbsp;&nbsp;113 | &nbsp;&nbsp;202 |  | &nbsp;&nbsp;**315** | &nbsp;&nbsp;169 | &nbsp;&nbsp;235 |  | &nbsp;&nbsp;**403** |
| &nbsp;&nbsp;**Total** | &nbsp;&nbsp;**10 893** | &nbsp;&nbsp;**28 488** | &nbsp;&nbsp;**5 031** | &nbsp;&nbsp;**44 411** | &nbsp;&nbsp;**12 855** | &nbsp;&nbsp;**25 810** | &nbsp;&nbsp;**4 369** | &nbsp;&nbsp;**43 034** |

---

● Rating
 as recommended by the Basel Committee (second best rating) or internal rating when not rated
 by any international rating agency (i.e. Moody's, Standard and Poor's or Fitch)

● Loans
 and financing commitments are reported after CRM

● Loans,
 Deposits and Securities are reported at nominal value and excluding accrued interest.

**A - Loans & Social Development Directorate Activity**

**Loan portfolio**

Credit risk in loan operations mainly arises from a bank borrower or counterparty failing to meet its contractual obligations or the materialisation of a rating downgrade.

As at 31 December 2025, loans outstanding reached €23.6 billion, increasing by 2.8% (+ €647 million) compared to year-end 2024. The Bank did not record any default or late payment in 2025 (as in 2024 and 2023).

The table below displays the risk profile of the loan portfolio by rating class and type of counterparty:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | | | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | |
| <br>&nbsp;&nbsp;€ million | <br>&nbsp;&nbsp;**AAA/AA** | &nbsp;&nbsp;**A/BBB** | &nbsp;&nbsp;**Non-IG** | <br>&nbsp;&nbsp;**Total** | <br>&nbsp;&nbsp;**AAA/AA** | &nbsp;&nbsp;**A/BBB** | &nbsp;&nbsp;**Non-IG** | <br>&nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;Sovereign, State-Owned Financial Institutions and IFIs | &nbsp;&nbsp;1 632 | &nbsp;&nbsp;7 340 | &nbsp;&nbsp;3 237 | &nbsp;&nbsp;**12 210** | &nbsp;&nbsp;1 940 | &nbsp;&nbsp;7 165 | &nbsp;&nbsp;2 792 | &nbsp;&nbsp;**11 896** |
| &nbsp;&nbsp;Sub-sovereign administrations and financial institutions | &nbsp;&nbsp;2 439 | &nbsp;&nbsp;4 664 | &nbsp;&nbsp;174 | &nbsp;&nbsp;**7 277** | &nbsp;&nbsp;2 738 | &nbsp;&nbsp;4 052 | &nbsp;&nbsp;130 | &nbsp;&nbsp;**6 920** |
| &nbsp;&nbsp;Other financial institutions | &nbsp;&nbsp;3 | &nbsp;&nbsp;2 742 | &nbsp;&nbsp;21 | &nbsp;&nbsp;**2 765** | &nbsp;&nbsp;5 | &nbsp;&nbsp;3 107 | &nbsp;&nbsp;41 | &nbsp;&nbsp;**3 153** |
| &nbsp;&nbsp;Non-financial institutions | &nbsp;&nbsp;238 | &nbsp;&nbsp;1 029 | &nbsp;&nbsp;42 | &nbsp;&nbsp;**1 310** | &nbsp;&nbsp;214 | &nbsp;&nbsp;697 | &nbsp;&nbsp;35 | &nbsp;&nbsp;**946** |
| &nbsp;&nbsp;**Total** | &nbsp;&nbsp;**4 313** | &nbsp;&nbsp;**15 775** | &nbsp;&nbsp;**3 474** | &nbsp;&nbsp;**23 562** | &nbsp;&nbsp;**4 897** | &nbsp;&nbsp;**15 020** | &nbsp;&nbsp;**2 998** | &nbsp;&nbsp;**22 915** |

---

· Rating
 as recommended by the Basel Committee (second best rating) or, when not rated by international
 rating agencies, internal rating

· Loans
 reported after CRM at nominal value and excluding accrued interest

<sup>1</sup> Standardised Approach for Counterparty Credit Risk

FINANCIAL STATEMENTS 2025

**Guaranteed and collateralised loans**

A significant part of the loan portfolio benefits from credit enhancements (collateral and guarantees), allowing for an improvement in credit risk quality. As at 31 December 2025, 27.1% of total outstanding loans were guaranteed:

● guaranteed
 loans by signed commitment: €6.3 billion (€6.9 billion as at 31 December 2024).

● collateralised
 loans by pledged securities: €49 million (€78 million as at 31 December 2024).

In particular, the Bank manages a portfolio of loans partially covered by the European Commission's InvestEU guarantee. At the end of 2025, the CEB InvestEU portfolio amounted to €417.4 million², and the guarantee covered by the European Commission amounted to €132.8 million. The InvestEU portfolio is set to grow to €1.0 billion loans, with a guarantee of €318.25 million.

**Impact of credit enhancements on the risk profile of loans outstanding**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** |  |  | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** |  |
|  | &nbsp;&nbsp;**Before CRM** | &nbsp;&nbsp;**Before CRM** | &nbsp;&nbsp;**After CRM** | &nbsp;&nbsp;**After CRM** | &nbsp;&nbsp;**Before CRM** | &nbsp;&nbsp;**Before CRM** | &nbsp;&nbsp;**After CRM** | &nbsp;&nbsp;**After CRM** |
| &nbsp;&nbsp; € million | &nbsp;&nbsp;Amount | &nbsp;&nbsp;% | &nbsp;&nbsp;Amount | &nbsp;&nbsp;% | &nbsp;&nbsp;Amount | &nbsp;&nbsp;% | &nbsp;&nbsp;Amount | &nbsp;&nbsp;% |
| &nbsp;&nbsp;AAA/AA | &nbsp;&nbsp;3 078 | &nbsp;&nbsp;13% | &nbsp;&nbsp;4 313 | &nbsp;&nbsp;18% | &nbsp;&nbsp;3 610 | &nbsp;&nbsp;16% | &nbsp;&nbsp;4 897 | &nbsp;&nbsp;21% |
| &nbsp;&nbsp;A/BBB | &nbsp;&nbsp;15 513 | &nbsp;&nbsp;66% | &nbsp;&nbsp;15 775 | &nbsp;&nbsp;67% | &nbsp;&nbsp;14 712 | &nbsp;&nbsp;64% | &nbsp;&nbsp;15 020 | &nbsp;&nbsp;66% |
| &nbsp;&nbsp;Non-IG | &nbsp;&nbsp;4 970 | &nbsp;&nbsp;21% | &nbsp;&nbsp;3 474 | &nbsp;&nbsp;15% | &nbsp;&nbsp;4 593 | &nbsp;&nbsp;20% | &nbsp;&nbsp;2 998 | &nbsp;&nbsp;13% |
| &nbsp;&nbsp;**Total** | &nbsp;&nbsp;**23 562** | &nbsp;&nbsp;**100%** | &nbsp;&nbsp;**23 562** | &nbsp;&nbsp;**100%** | &nbsp;&nbsp;**22 915** | &nbsp;&nbsp;**100%** | &nbsp;&nbsp;**22 915** | &nbsp;&nbsp;**100%** |

---

● Rating
 as recommended by the Basel Committee (second best rating) or, when not rated by international
 rating agencies, internal rating

● Loans
 reported at nominal value and excluding accrued interest

More specifically, the two tables below show the impact of the guarantees on non-rated loans by external credit rating agencies.

**Share of non-rated loans by external rating agencies out of the total loans**

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** |
| &nbsp;&nbsp;**Before CRM** | &nbsp;&nbsp;**After CRM** | &nbsp;&nbsp;**Before CRM** | &nbsp;&nbsp;**After CRM** |
| &nbsp;&nbsp;6 200 | &nbsp;&nbsp;3 249 | &nbsp;&nbsp;5 998 | &nbsp;&nbsp;3 011 |
| &nbsp;&nbsp;26.3% | &nbsp;&nbsp;13.8% | &nbsp;&nbsp;26.2% | &nbsp;&nbsp;13.1% |

---

Amounts in € million

**Share of loans with an "Investment Grade" internal rating, among loans non-rated by external agencies**

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** |
| &nbsp;&nbsp;**Before CRM** | &nbsp;&nbsp;**After CRM** | &nbsp;&nbsp;**Before CRM** | &nbsp;&nbsp;**After CRM** |
| &nbsp;&nbsp;4 431 | &nbsp;&nbsp;3 012 | &nbsp;&nbsp;4 286 | &nbsp;&nbsp;2 806 |
| &nbsp;&nbsp;71.5% | &nbsp;&nbsp;92.7% | &nbsp;&nbsp;71.4% | &nbsp;&nbsp;93.2% |

---

Amounts in € million

**Breakdown of loans outstanding by maturity of repayment flows**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| € million | &nbsp;&nbsp;**Maturity** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**%** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**%** |
|  | &nbsp;&nbsp;Up to 1 year | &nbsp;&nbsp;2 913 | &nbsp;&nbsp;12% | &nbsp;&nbsp;2 661 | &nbsp;&nbsp;12% |
|  | &nbsp;&nbsp;1 year to 5 years | &nbsp;&nbsp;9 265 | &nbsp;&nbsp;39% | &nbsp;&nbsp;9 364 | &nbsp;&nbsp;41% |
|  | &nbsp;&nbsp;5 years to 10 years | &nbsp;&nbsp;6 544 | &nbsp;&nbsp;28% | &nbsp;&nbsp;6 561 | &nbsp;&nbsp;29% |
|  | &nbsp;&nbsp;10 years to 20 years | &nbsp;&nbsp;4 252 | &nbsp;&nbsp;18% | &nbsp;&nbsp;3 776 | &nbsp;&nbsp;16% |
|  | &nbsp;&nbsp;More than 20 years | &nbsp;&nbsp;588 | &nbsp;&nbsp;2% | &nbsp;&nbsp;553 | &nbsp;&nbsp;2% |
|  | &nbsp;&nbsp;**Total** | &nbsp;&nbsp;**23 562** | &nbsp;&nbsp;**100%** | &nbsp;&nbsp;**22 915** | &nbsp;&nbsp;**100%** |
|  | &nbsp;&nbsp;Weighted average residual life | &nbsp;&nbsp;6.36 years | &nbsp;&nbsp;6.36 years | &nbsp;&nbsp;6.15 years | &nbsp;&nbsp;6.15 years |

---

<sup>2</sup> The amount corresponds to the outstanding loan approved and for which a Framework Loan Agreement has been signed with the counterparty.

FINANCIAL STATEMENTS 2025

**Breakdown of loans outstanding by rating class and by country of the counterparty (after CRM)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** |
| <br>&nbsp;&nbsp;€ million | &nbsp;&nbsp;**AAA/AA** | &nbsp;&nbsp;**A/BBB** | &nbsp;&nbsp;**Non-IG** | &nbsp;&nbsp;**Total** | &nbsp;&nbsp;**AAA/AA** | &nbsp;&nbsp;**A/BBB** | &nbsp;&nbsp;**Non-IG** | &nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;**Member Countries** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Spain |  | &nbsp;&nbsp;2 415 | &nbsp;&nbsp;30 | &nbsp;&nbsp;**2 445** |  | &nbsp;&nbsp;2 502 | &nbsp;&nbsp;33 | &nbsp;&nbsp;**2 534** |
| &nbsp;&nbsp;Poland |  | &nbsp;&nbsp;2 267 |  | &nbsp;&nbsp;**2 267** |  | &nbsp;&nbsp;2 043 | &nbsp;&nbsp;1 | &nbsp;&nbsp;**2 044** |
| &nbsp;&nbsp;France | &nbsp;&nbsp;238 | &nbsp;&nbsp;1 909 | &nbsp;&nbsp;43 | &nbsp;&nbsp;**2 191** | &nbsp;&nbsp;942 | &nbsp;&nbsp;1 278 | &nbsp;&nbsp;35 | &nbsp;&nbsp;**2 254** |
| &nbsp;&nbsp;Germany | &nbsp;&nbsp;1 317 | &nbsp;&nbsp;532 |  | &nbsp;&nbsp;**1 848** | &nbsp;&nbsp;1 209 | &nbsp;&nbsp;450 |  | &nbsp;&nbsp;**1 659** |
| &nbsp;&nbsp;Italy |  | &nbsp;&nbsp;1 847 |  | &nbsp;&nbsp;**1 847** |  | &nbsp;&nbsp;1 774 |  | &nbsp;&nbsp;**1 774** |
| &nbsp;&nbsp;Türkiye |  |  | &nbsp;&nbsp;1 537 | &nbsp;&nbsp;**1 537** |  |  | &nbsp;&nbsp;1 436 | &nbsp;&nbsp;**1 436** |
| &nbsp;&nbsp;Belgium | &nbsp;&nbsp;161 | &nbsp;&nbsp;1 049 |  | &nbsp;&nbsp;**1 210** | &nbsp;&nbsp;180 | &nbsp;&nbsp;783 |  | &nbsp;&nbsp;**962** |
| &nbsp;&nbsp;Slovak Republic |  | &nbsp;&nbsp;1 013 |  | &nbsp;&nbsp;**1 013** |  | &nbsp;&nbsp;1 156 |  | &nbsp;&nbsp;**1 156** |
| &nbsp;&nbsp;Lithuania |  | &nbsp;&nbsp;848 | &nbsp;&nbsp;17 | &nbsp;&nbsp;**865** |  | &nbsp;&nbsp;897 | &nbsp;&nbsp;35 | &nbsp;&nbsp;**931** |
| &nbsp;&nbsp;Netherlands | &nbsp;&nbsp;463 | &nbsp;&nbsp;359 | &nbsp;&nbsp;3 | &nbsp;&nbsp;**826** | &nbsp;&nbsp;488 | &nbsp;&nbsp;500 | &nbsp;&nbsp;5 | &nbsp;&nbsp;**993** |
| &nbsp;&nbsp;Serbia |  |  | &nbsp;&nbsp;823 | &nbsp;&nbsp;**823** |  |  | &nbsp;&nbsp;768 | &nbsp;&nbsp;**768** |
| &nbsp;&nbsp;Hungary |  | &nbsp;&nbsp;767 |  | &nbsp;&nbsp;**767** |  | &nbsp;&nbsp;726 |  | &nbsp;&nbsp;**726** |
| &nbsp;&nbsp;Finland | &nbsp;&nbsp;444 | &nbsp;&nbsp;248 |  | &nbsp;&nbsp;**692** | &nbsp;&nbsp;487 | &nbsp;&nbsp;248 | &nbsp;&nbsp;1 | &nbsp;&nbsp;**735** |
| &nbsp;&nbsp;Croatia |  | &nbsp;&nbsp;583 |  | &nbsp;&nbsp;**583** |  | &nbsp;&nbsp;691 |  | &nbsp;&nbsp;**691** |
| &nbsp;&nbsp;Sweden | &nbsp;&nbsp;520 | &nbsp;&nbsp;23 |  | &nbsp;&nbsp;**543** | &nbsp;&nbsp;520 | &nbsp;&nbsp;22 |  | &nbsp;&nbsp;**542** |
| &nbsp;&nbsp;Ireland | &nbsp;&nbsp;513 | &nbsp;&nbsp;12 |  | &nbsp;&nbsp;**525** | &nbsp;&nbsp;480 | &nbsp;&nbsp;13 |  | &nbsp;&nbsp;**494** |
| &nbsp;&nbsp;Ukraine |  |  | &nbsp;&nbsp;459 | &nbsp;&nbsp;**459** |  |  | &nbsp;&nbsp;116 | &nbsp;&nbsp;**116** |
| &nbsp;&nbsp;Czech Republic | &nbsp;&nbsp;383 | &nbsp;&nbsp;74 |  | &nbsp;&nbsp;**456** | &nbsp;&nbsp;379 | &nbsp;&nbsp;55 |  | &nbsp;&nbsp;**434** |
| &nbsp;&nbsp;Romania |  | &nbsp;&nbsp;246 | &nbsp;&nbsp;143 | &nbsp;&nbsp;**389** |  | &nbsp;&nbsp;322 | &nbsp;&nbsp;97 | &nbsp;&nbsp;**420** |
| &nbsp;&nbsp;Bulgaria |  | &nbsp;&nbsp;308 |  | &nbsp;&nbsp;**308** |  | &nbsp;&nbsp;224 |  | &nbsp;&nbsp;**224** |
| &nbsp;&nbsp;Cyprus |  | &nbsp;&nbsp;267 |  | &nbsp;&nbsp;**267** |  | &nbsp;&nbsp;283 |  | &nbsp;&nbsp;**283** |
| &nbsp;&nbsp;Estonia |  | &nbsp;&nbsp;219 |  | &nbsp;&nbsp;**219** |  | &nbsp;&nbsp;220 |  | &nbsp;&nbsp;**220** |
| &nbsp;&nbsp;Greece |  | &nbsp;&nbsp;218 |  | &nbsp;&nbsp;**218** |  | &nbsp;&nbsp;218 |  | &nbsp;&nbsp;**218** |
| &nbsp;&nbsp;Slovenia |  | &nbsp;&nbsp;190 |  | &nbsp;&nbsp;**190** |  | &nbsp;&nbsp;195 |  | &nbsp;&nbsp;**195** |
| &nbsp;&nbsp;Portugal |  | &nbsp;&nbsp;149 |  | &nbsp;&nbsp;**149** |  | &nbsp;&nbsp;246 |  | &nbsp;&nbsp;**246** |
| &nbsp;&nbsp;Iceland |  | &nbsp;&nbsp;110 |  | &nbsp;&nbsp;**110** |  | &nbsp;&nbsp;65 |  | &nbsp;&nbsp;**65** |
| &nbsp;&nbsp;Albania |  |  | &nbsp;&nbsp;91 | &nbsp;&nbsp;**91** |  |  | &nbsp;&nbsp;106 | &nbsp;&nbsp;**106** |
| &nbsp;&nbsp;Bosnia and Herzegovina |  |  | &nbsp;&nbsp;78 | &nbsp;&nbsp;**78** |  |  | &nbsp;&nbsp;83 | &nbsp;&nbsp;**83** |
| &nbsp;&nbsp;North Macedonia |  |  | &nbsp;&nbsp;71 | &nbsp;&nbsp;**71** |  |  | &nbsp;&nbsp;78 | &nbsp;&nbsp;**78** |
| &nbsp;&nbsp;Montenegro |  |  | &nbsp;&nbsp;70 | &nbsp;&nbsp;**70** |  |  | &nbsp;&nbsp;81 | &nbsp;&nbsp;**81** |
| &nbsp;&nbsp;Republic of Moldova |  |  | &nbsp;&nbsp;50 | &nbsp;&nbsp;**50** |  |  | &nbsp;&nbsp;58 | &nbsp;&nbsp;**58** |
| &nbsp;&nbsp;Kosovo |  |  | &nbsp;&nbsp;44 | &nbsp;&nbsp;**44** |  |  | &nbsp;&nbsp;45 | &nbsp;&nbsp;**45** |
| &nbsp;&nbsp;Latvia |  | &nbsp;&nbsp;37 |  | &nbsp;&nbsp;**37** |  | &nbsp;&nbsp;18 |  | &nbsp;&nbsp;**18** |
| &nbsp;&nbsp;Malta |  | &nbsp;&nbsp;29 |  | &nbsp;&nbsp;**29** |  | &nbsp;&nbsp;29 |  | &nbsp;&nbsp;**29** |
| &nbsp;&nbsp;Georgia |  |  | &nbsp;&nbsp;14 | &nbsp;&nbsp;**14** |  |  | &nbsp;&nbsp;14 | &nbsp;&nbsp;**14** |
| &nbsp;&nbsp;Andorra |  | &nbsp;&nbsp;12 |  | &nbsp;&nbsp;**12** |  | &nbsp;&nbsp;13 |  | &nbsp;&nbsp;**13** |
| &nbsp;&nbsp;San Marino |  | &nbsp;&nbsp;7 |  | &nbsp;&nbsp;**7** |  |  | &nbsp;&nbsp;8 | &nbsp;&nbsp;**8** |
| &nbsp;&nbsp;**Sub-total** | &nbsp;&nbsp;**4 039** | &nbsp;&nbsp;**15 737** | &nbsp;&nbsp;**3 474** | &nbsp;&nbsp;**23 250** | &nbsp;&nbsp;**4 685** | &nbsp;&nbsp;**14 969** | &nbsp;&nbsp;**2 998** | &nbsp;&nbsp;**22 652** |
| &nbsp;&nbsp;**Supranational** | &nbsp;&nbsp;274 |  |  | &nbsp;&nbsp;**274** | &nbsp;&nbsp;212 |  |  | &nbsp;&nbsp;**212** |
| &nbsp;&nbsp;**Non-Member Countries** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Austria |  | &nbsp;&nbsp;38 |  | &nbsp;&nbsp;**38** |  | &nbsp;&nbsp;51 |  | &nbsp;&nbsp;**51** |
| &nbsp;&nbsp;**Total** | &nbsp;&nbsp;**4 313** | &nbsp;&nbsp;**15 775** | &nbsp;&nbsp;**3 474** | &nbsp;&nbsp;**23 562** | &nbsp;&nbsp;**4 897** | &nbsp;&nbsp;**15 020** | &nbsp;&nbsp;**2 998** | &nbsp;&nbsp;**22 915** |

---

● Loans
 reported after CRM at nominal value and excluding accrued interest

FINANCIAL STATEMENTS 2025

**Stock of projects and financing commitments**

The stock of projects encompasses all projects approved by the Administrative Council awaiting financing. Financing commitments are projects still awaiting financing, but for which a framework loan agreement has been signed.

The stock of projects reached €9.4 billion as at 31 December 2025 (compared to €9.2 billion at year-end 2024), of which 71.2% are rated Investment-Grade (75.8% at year-end 2024).

Financing commitments reached €6.9 billion as at 31 December 2025 (compared to €6.6 billion at year-end 2024), of which 77.5% are rated Investment-Grade (79.3% at year-end 2024).

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | | | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | |
| <br>&nbsp;&nbsp;€ million | <br>&nbsp;&nbsp;**AAA/AA** | &nbsp;&nbsp;**A/BBB** | &nbsp;&nbsp;**Non-IG** | <br>&nbsp;&nbsp;**Total** | <br>&nbsp;&nbsp;**AAA/AA** | &nbsp;&nbsp;**A/BBB** | &nbsp;&nbsp;**Non-IG** | <br>&nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;Total stock of projects | &nbsp;&nbsp;978 | &nbsp;&nbsp;5 702 | &nbsp;&nbsp;2 706 | &nbsp;&nbsp;**9 387** | &nbsp;&nbsp;1 357 | &nbsp;&nbsp;5 632 | &nbsp;&nbsp;2 232 | &nbsp;&nbsp;**9 221** |
| &nbsp;&nbsp;*of which financing commitments* | &nbsp;&nbsp;928 | &nbsp;&nbsp;4 427 | &nbsp;&nbsp;1 557 | &nbsp;&nbsp;**6 912** | &nbsp;&nbsp;1 357 | &nbsp;&nbsp;3 880 | &nbsp;&nbsp;1 371 | &nbsp;&nbsp;**6 609** |

---

● *Financing commitments reported considering future CRM* 

**Breakdown of financing commitments by rating class and by country of the counterparty (after CRM)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** |
| <br>&nbsp;&nbsp;€ million | &nbsp;&nbsp;**AAA/AA** | &nbsp;&nbsp;**A/BBB** | &nbsp;&nbsp;**Non-IG** | &nbsp;&nbsp;**Total** | &nbsp;&nbsp;**AAA/AA** | &nbsp;&nbsp;**A/BBB** | &nbsp;&nbsp;**Non-IG** | &nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;**Member Countries** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;France | &nbsp;&nbsp;265 | &nbsp;&nbsp;687 | &nbsp;&nbsp;16 | &nbsp;&nbsp;968 | &nbsp;&nbsp;540 | &nbsp;&nbsp;213 | &nbsp;&nbsp;11 | &nbsp;&nbsp;764 |
| &nbsp;&nbsp;Italy |  | &nbsp;&nbsp;696 |  | &nbsp;&nbsp;696 |  | &nbsp;&nbsp;371 |  | &nbsp;&nbsp;371 |
| &nbsp;&nbsp;Türkiye |  |  | &nbsp;&nbsp;605 | &nbsp;&nbsp;605 |  |  | &nbsp;&nbsp;478 | &nbsp;&nbsp;478 |
| &nbsp;&nbsp;Romania |  | &nbsp;&nbsp;534 | &nbsp;&nbsp;20 | &nbsp;&nbsp;554 |  | &nbsp;&nbsp;385 | &nbsp;&nbsp;28 | &nbsp;&nbsp;413 |
| &nbsp;&nbsp;Serbia |  |  | &nbsp;&nbsp;412 | &nbsp;&nbsp;412 |  |  | &nbsp;&nbsp;499 | &nbsp;&nbsp;499 |
| &nbsp;&nbsp;Germany | &nbsp;&nbsp;281 | &nbsp;&nbsp;85 |  | &nbsp;&nbsp;366 | &nbsp;&nbsp;361 | &nbsp;&nbsp;200 |  | &nbsp;&nbsp;561 |
| &nbsp;&nbsp;Belgium |  | &nbsp;&nbsp;325 |  | &nbsp;&nbsp;325 |  | &nbsp;&nbsp;550 |  | &nbsp;&nbsp;550 |
| &nbsp;&nbsp;Bulgaria |  | &nbsp;&nbsp;273 |  | &nbsp;&nbsp;273 |  | &nbsp;&nbsp;123 |  | &nbsp;&nbsp;123 |
| &nbsp;&nbsp;Portugal |  | &nbsp;&nbsp;257 |  | &nbsp;&nbsp;257 |  | &nbsp;&nbsp;353 |  | &nbsp;&nbsp;353 |
| &nbsp;&nbsp;Croatia |  | &nbsp;&nbsp;250 |  | &nbsp;&nbsp;250 |  |  |  |  |
| &nbsp;&nbsp;Slovak Republic |  | &nbsp;&nbsp;246 |  | &nbsp;&nbsp;246 |  | &nbsp;&nbsp;533 |  | &nbsp;&nbsp;533 |
| &nbsp;&nbsp;Spain |  | &nbsp;&nbsp;195 |  | &nbsp;&nbsp;195 |  | &nbsp;&nbsp;270 |  | &nbsp;&nbsp;270 |
| &nbsp;&nbsp;Republic of Moldova |  |  | &nbsp;&nbsp;183 | &nbsp;&nbsp;183 |  |  | &nbsp;&nbsp;154 | &nbsp;&nbsp;154 |
| &nbsp;&nbsp;Netherlands | &nbsp;&nbsp;150 |  |  | &nbsp;&nbsp;150 |  |  |  |  |
| &nbsp;&nbsp;Greece |  | &nbsp;&nbsp;133 |  | &nbsp;&nbsp;133 |  | &nbsp;&nbsp;133 |  | &nbsp;&nbsp;133 |
| &nbsp;&nbsp;Hungary |  | &nbsp;&nbsp;125 |  | &nbsp;&nbsp;125 |  | &nbsp;&nbsp;25 |  | &nbsp;&nbsp;25 |
| &nbsp;&nbsp;Iceland |  | &nbsp;&nbsp;111 |  | &nbsp;&nbsp;111 |  | &nbsp;&nbsp;92 |  | &nbsp;&nbsp;92 |
| &nbsp;&nbsp;Ukraine |  |  | &nbsp;&nbsp;91 | &nbsp;&nbsp;91 |  |  | &nbsp;&nbsp;84 | &nbsp;&nbsp;84 |
| &nbsp;&nbsp;Montenegro |  |  | &nbsp;&nbsp;88 | &nbsp;&nbsp;88 |  |  | &nbsp;&nbsp;9 | &nbsp;&nbsp;9 |
| &nbsp;&nbsp;Estonia |  | &nbsp;&nbsp;85 |  | &nbsp;&nbsp;85 |  | &nbsp;&nbsp;25 |  | &nbsp;&nbsp;25 |
| &nbsp;&nbsp;Lithuania |  | &nbsp;&nbsp;85 |  | &nbsp;&nbsp;85 |  | &nbsp;&nbsp;73 |  | &nbsp;&nbsp;73 |
| &nbsp;&nbsp;Cyprus |  | &nbsp;&nbsp;84 |  | &nbsp;&nbsp;84 |  | &nbsp;&nbsp;68 |  | &nbsp;&nbsp;68 |
| &nbsp;&nbsp;Czech Republic |  | &nbsp;&nbsp;77 |  | &nbsp;&nbsp;77 | &nbsp;&nbsp;121 | &nbsp;&nbsp;119 |  | &nbsp;&nbsp;239 |
| &nbsp;&nbsp;North Macedonia |  |  | &nbsp;&nbsp;70 | &nbsp;&nbsp;70 |  |  | &nbsp;&nbsp;75 | &nbsp;&nbsp;75 |
| &nbsp;&nbsp;Finland |  | &nbsp;&nbsp;65 |  | &nbsp;&nbsp;65 |  | &nbsp;&nbsp;50 |  | &nbsp;&nbsp;50 |
| &nbsp;&nbsp;Poland |  | &nbsp;&nbsp;60 |  | &nbsp;&nbsp;60 |  | &nbsp;&nbsp;230 |  | &nbsp;&nbsp;230 |
| &nbsp;&nbsp;Sweden | &nbsp;&nbsp;57 |  |  | &nbsp;&nbsp;57 | &nbsp;&nbsp;80 |  |  | &nbsp;&nbsp;80 |
| &nbsp;&nbsp;Latvia |  | &nbsp;&nbsp;41 |  | &nbsp;&nbsp;41 |  | &nbsp;&nbsp;22 |  | &nbsp;&nbsp;22 |
| &nbsp;&nbsp;Albania |  |  | &nbsp;&nbsp;27 | &nbsp;&nbsp;27 |  |  |  |  |
| &nbsp;&nbsp;Kosovo |  |  | &nbsp;&nbsp;25 | &nbsp;&nbsp;25 |  |  | &nbsp;&nbsp;25 | &nbsp;&nbsp;25 |
| &nbsp;&nbsp;Bosnia and Herzegovina |  |  | &nbsp;&nbsp;20 | &nbsp;&nbsp;20 |  |  | &nbsp;&nbsp;9 | &nbsp;&nbsp;9 |
| &nbsp;&nbsp;Slovenia |  | &nbsp;&nbsp;15 |  | &nbsp;&nbsp;15 |  | &nbsp;&nbsp;25 |  | &nbsp;&nbsp;25 |
| &nbsp;&nbsp;Ireland |  |  |  |  | &nbsp;&nbsp;50 | &nbsp;&nbsp;22 |  | &nbsp;&nbsp;72 |
| &nbsp;&nbsp;**Sub-total** | &nbsp;&nbsp;**753** | &nbsp;&nbsp;**4 427** | &nbsp;&nbsp;**1 557** | &nbsp;&nbsp;**6 737** | &nbsp;&nbsp;**1 151** | &nbsp;&nbsp;**3 880** | &nbsp;&nbsp;**1 371** | &nbsp;&nbsp;**6 403** |
| &nbsp;&nbsp;**Supranational** | &nbsp;&nbsp;175 |  |  | &nbsp;&nbsp;**175** | &nbsp;&nbsp;206 |  |  | &nbsp;&nbsp;**206** |
| &nbsp;&nbsp;**Total** | &nbsp;&nbsp;**928** | &nbsp;&nbsp;**4 427** | &nbsp;&nbsp;**1 557** | &nbsp;&nbsp;**6 912** | &nbsp;&nbsp;**1 357** | &nbsp;&nbsp;**3 880** | &nbsp;&nbsp;**1 371** | &nbsp;&nbsp;**6 609** |

---

● Rating
 as recommended by the Basel Committee (second best rating) or, when not rated by international
 rating agencies, internal rating

● Financing
 commitments reported, considering future CRM

FINANCIAL STATEMENTS 2025

**B - Finance Directorate Activity**

**Treasury operations**

Credit risk in treasury operations mainly arises through placements in deposits, investments in securities and by entering into derivatives transactions for hedging purposes.

CEB's risk appetite framework defines minimum internal ratings which issuers, debtors and counterparties need to have at the time when the Bank enters into transactions with them. These minimum internal ratings are based on the maturity of the investment (deposits and securities) and the type of counterparty.

**Breakdown of finance operations by type of transaction**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **2025** | **2025** | | | **2024** | **2024** | |
| <br>&nbsp;&nbsp; € million | <br>&nbsp;&nbsp;**AAA** | &nbsp;&nbsp;**AA** | &nbsp;&nbsp;**A** | <br>&nbsp;&nbsp;**Total** | <br>&nbsp;&nbsp;**AAA** | &nbsp;&nbsp;**AA** | &nbsp;&nbsp;**A** | <br>&nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;Deposits (Nostro & Money Market) | &nbsp;&nbsp;689 | &nbsp;&nbsp;1 774 | &nbsp;&nbsp;5 081 | &nbsp;&nbsp;**7 544** | &nbsp;&nbsp;683 | &nbsp;&nbsp;1 475 | &nbsp;&nbsp;5 245 | &nbsp;&nbsp;**7 403** |
| &nbsp;&nbsp;Securities | &nbsp;&nbsp;1 481 | &nbsp;&nbsp;1 595 | &nbsp;&nbsp;3 003 | &nbsp;&nbsp;**6 079** | &nbsp;&nbsp;1 537 | &nbsp;&nbsp;2 738 | &nbsp;&nbsp;1 430 | &nbsp;&nbsp;**5 705** |
| &nbsp;&nbsp;Swaps & Forex EAD SA-CCR |  | &nbsp;&nbsp;113 | &nbsp;&nbsp;202 | &nbsp;&nbsp;**315** |  | &nbsp;&nbsp;169 | &nbsp;&nbsp;235 | &nbsp;&nbsp;**403** |
| &nbsp;&nbsp;**Total** | &nbsp;&nbsp;**2 171** | &nbsp;&nbsp;**3 481** | &nbsp;&nbsp;**8 285** | &nbsp;&nbsp;**13 937** | &nbsp;&nbsp;**2 219** | &nbsp;&nbsp;**4 382** | &nbsp;&nbsp;**6 909** | &nbsp;&nbsp;**13 510** |

---

● Rating
 as recommended by the Basel Committee (second best external rating) or, when not rated by
 international rating agencies, internal rating

**Deposits**

The treasury monetary portfolio consists of short-term placements such as nostro accounts, bank deposits up to one year, cash received as collateral from derivative and (reverse) repurchase (repo) activities. Repo transactions aim at managing day-to-day cash flow in all required currencies. Eligible counterparties for investments of up to three months must have a minimum internal rating of 6.5 (BBB+) and 7.0 (A-) for investments between three months and one year.

**Breakdown by deposit type and credit rating**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **2025** | **2025** | | | **2024** | **2024** | |
| <br>&nbsp;&nbsp;€ million | <br>&nbsp;&nbsp;**AAA** | &nbsp;&nbsp;**AA** | &nbsp;&nbsp;**A** | <br>&nbsp;&nbsp;**Total** | <br>&nbsp;&nbsp;**AAA** | &nbsp;&nbsp;**AA** | &nbsp;&nbsp;**A** | <br>&nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;Nostro | &nbsp;&nbsp;244 | &nbsp;&nbsp;98 | &nbsp;&nbsp;167 | &nbsp;&nbsp;**510** | &nbsp;&nbsp;237 | &nbsp;&nbsp;186 | &nbsp;&nbsp;191 | &nbsp;&nbsp;**614** |
| &nbsp;&nbsp;Money Market | &nbsp;&nbsp;446 | &nbsp;&nbsp;1 675 | &nbsp;&nbsp;4 914 | &nbsp;&nbsp;**7 034** | &nbsp;&nbsp;446 | &nbsp;&nbsp;1 290 | &nbsp;&nbsp;5 053 | &nbsp;&nbsp;**6 789** |
| &nbsp;&nbsp;**Total** | &nbsp;&nbsp;**689** | &nbsp;&nbsp;**1 774** | &nbsp;&nbsp;**5 081** | &nbsp;&nbsp;**7 544** | &nbsp;&nbsp;**683** | &nbsp;&nbsp;**1 475** | &nbsp;&nbsp;**5 245** | &nbsp;&nbsp;**7 403** |

---

● Rating
 as recommended by the Basel Committee (second best external rating) or, when not rated by
 international rating agencies, internal rating

● Deposits
 reported at nominal value and excluding accrued interest

**Breakdown of money-market deposits by maturity and credit rating**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **2025** | **2025** | | | **2024** | **2024** | |
| <br>&nbsp;&nbsp;€ million | <br>&nbsp;&nbsp;**AAA** | &nbsp;&nbsp;**AA** | &nbsp;&nbsp;**A** | <br>&nbsp;&nbsp;**Total** | <br>&nbsp;&nbsp;**AAA** | &nbsp;&nbsp;**AA** | &nbsp;&nbsp;**A** | <br>&nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;Up to 1 month |  | &nbsp;&nbsp;269 | &nbsp;&nbsp;1 225 | &nbsp;&nbsp;**1 494** | &nbsp;&nbsp;446 | &nbsp;&nbsp;402 | &nbsp;&nbsp;1 283 | &nbsp;&nbsp;**2 131** |
| &nbsp;&nbsp;1 M to 3 M | &nbsp;&nbsp; 446 | &nbsp;&nbsp;776 | &nbsp;&nbsp;1 031 | &nbsp;&nbsp;**2 252** |  | &nbsp;&nbsp;414 | &nbsp;&nbsp;1 356 | &nbsp;&nbsp;**1 770** |
| &nbsp;&nbsp;3 M to 6 M |  | &nbsp;&nbsp;580 | &nbsp;&nbsp;2 130 | &nbsp;&nbsp;**2 710** |  | &nbsp;&nbsp;330 | &nbsp;&nbsp;1 145 | &nbsp;&nbsp;**1 475** |
| &nbsp;&nbsp;6 M to 1 year |  | &nbsp;&nbsp;50 | &nbsp;&nbsp;528 | &nbsp;&nbsp;**578** |  | &nbsp;&nbsp;144 | &nbsp;&nbsp;1 269 | &nbsp;&nbsp;1 413 |
| &nbsp;&nbsp;**Total** | &nbsp;&nbsp;**446** | &nbsp;&nbsp;**1 675** | &nbsp;&nbsp;**4 914** | &nbsp;&nbsp;**7 034** | &nbsp;&nbsp;**446** | &nbsp;&nbsp;**1 290** | &nbsp;&nbsp;**5 053** | &nbsp;&nbsp;**6 789** |

---

● Rating
 as recommended by the Basel Committee (second best external rating) or, when not rated by
 international rating agencies, internal rating

● Deposits
 reported at nominal value and excluding accrued interest

**Securities portfolios**

The Bank manages three securities portfolios:

- Short-Term Liquidity Portfolio (STL): short-term securities with maturities up to one year; <br> - Fair-Value through Equity Portfolio (FVOCI<sup>3</sup>): maturities between one and 15 years; <br> - Amortised Cost Portfolio (ACP): in euro, fixed-rate, and maturities between one year and 30 years.

<sup>3</sup> Fair Value through Other Comprehensive Income Portfolio

FINANCIAL STATEMENTS 2025

**Breakdown of securities by portfolio type and rating**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | | | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | |
| <br>&nbsp;&nbsp;€ million | <br>&nbsp;&nbsp;**AAA** | &nbsp;&nbsp;**AA** | &nbsp;&nbsp;**A** | <br>&nbsp;&nbsp;**Total** | <br>&nbsp;&nbsp;**AAA** | &nbsp;&nbsp;**AA** | &nbsp;&nbsp;**A** | <br>&nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;Amortised Cost Portfolio | &nbsp;&nbsp;1 249 | &nbsp;&nbsp;678 | &nbsp;&nbsp;1 132 | &nbsp;&nbsp;**3 059** | &nbsp;&nbsp;1 204 | &nbsp;&nbsp;1 137 |  | &nbsp;&nbsp;**2 341** |
| &nbsp;&nbsp;Fair-Value Portfolio | &nbsp;&nbsp;232 | &nbsp;&nbsp;917 | &nbsp;&nbsp;850 | &nbsp;&nbsp;**1 998** | &nbsp;&nbsp;333 | &nbsp;&nbsp;1 601 | &nbsp;&nbsp;105 | &nbsp;&nbsp;**2 039** |
| &nbsp;&nbsp;Short-Term Portfolio |  |  | &nbsp;&nbsp;1 021 | &nbsp;&nbsp;**1 021** |  |  | &nbsp;&nbsp;1 325 | &nbsp;&nbsp;**1 325** |
| &nbsp;&nbsp;**Total** | &nbsp;&nbsp;**1 481** | &nbsp;&nbsp;**1 595** | &nbsp;&nbsp;**3 003** | &nbsp;&nbsp;**6 079** | &nbsp;&nbsp;**1 537** | &nbsp;&nbsp;**2 738** | &nbsp;&nbsp;**1 430** | &nbsp;&nbsp;**5 705** |

---

● Rating
 as recommended by the Basel Committee (second best rating) or, when not rated by international rating agencies, internal rating

● Securities reported at nominal value and excluding accrued interest

**Breakdown of securities portfolio by residual maturity and rating**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | | | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | |
| <br>&nbsp;&nbsp;€ million | <br>&nbsp;&nbsp;**AAA** | &nbsp;&nbsp;**AA** | &nbsp;&nbsp;**A** | <br>&nbsp;&nbsp;**Total** | <br>&nbsp;&nbsp;**AAA** | &nbsp;&nbsp;**AA** | &nbsp;&nbsp;**A** | <br>&nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;Under 1 year | &nbsp;&nbsp;207 | &nbsp;&nbsp;125 | &nbsp;&nbsp;1 230 | &nbsp;&nbsp;**1 562** | &nbsp;&nbsp;209 | &nbsp;&nbsp;368 | &nbsp;&nbsp;1 325 | &nbsp;&nbsp;**1 903** |
| &nbsp;&nbsp;1 year to 2 years | &nbsp;&nbsp;173 | &nbsp;&nbsp;161 | &nbsp;&nbsp;66 | &nbsp;&nbsp;**400** | &nbsp;&nbsp;207 | &nbsp;&nbsp;332 | &nbsp;&nbsp;5 | &nbsp;&nbsp;**544** |
| &nbsp;&nbsp;2 years to 5 years | &nbsp;&nbsp;380 | &nbsp;&nbsp;254 | &nbsp;&nbsp;362 | &nbsp;&nbsp;**996** | &nbsp;&nbsp;475 | &nbsp;&nbsp;620 | &nbsp;&nbsp;100 | &nbsp;&nbsp;**1 195** |
| &nbsp;&nbsp;> 5 years | &nbsp;&nbsp;721 | &nbsp;&nbsp;1 055 | &nbsp;&nbsp;1 345 | &nbsp;&nbsp;**3 121** | &nbsp;&nbsp;645 | &nbsp;&nbsp;1 418 |  | &nbsp;&nbsp;**2 063** |
| &nbsp;&nbsp;**Total** | &nbsp;&nbsp;**1 481** | &nbsp;&nbsp;**1 595** | &nbsp;&nbsp;**3 003** | &nbsp;&nbsp;**6 079** | &nbsp;&nbsp;**1 537** | &nbsp;&nbsp;**2 738** | &nbsp;&nbsp;**1 430** | &nbsp;&nbsp;**5 705** |

---

**Breakdown of securities portfolio by country and rating of the issuer**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | | | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2024** | |
| <br>&nbsp;&nbsp;€ million | <br>&nbsp;&nbsp;**AAA** | &nbsp;&nbsp;**AA** | &nbsp;&nbsp;**A** | <br>&nbsp;&nbsp;**Total** | <br>&nbsp;&nbsp;**AAA** | &nbsp;&nbsp;**AA** | &nbsp;&nbsp;**A** | <br>&nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;***Member Countries*** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;France |  | &nbsp;&nbsp;30 | &nbsp;&nbsp;2 192 | &nbsp;&nbsp;**2 222** |  | &nbsp;&nbsp;1 436 | &nbsp;&nbsp;205 | &nbsp;&nbsp;**1 641** |
| &nbsp;&nbsp;Germany | &nbsp;&nbsp;129 | &nbsp;&nbsp;368 | &nbsp;&nbsp;50 | &nbsp;&nbsp;**547** | &nbsp;&nbsp;179 | &nbsp;&nbsp;387 |  | &nbsp;&nbsp;**566** |
| &nbsp;&nbsp;Netherlands | &nbsp;&nbsp;113 |  | &nbsp;&nbsp;91 | &nbsp;&nbsp;**204** | &nbsp;&nbsp;113 |  |  | &nbsp;&nbsp;113 |
| &nbsp;&nbsp;Belgium |  | &nbsp;&nbsp;202 |  | &nbsp;&nbsp;**202** |  | &nbsp;&nbsp;17 |  | &nbsp;&nbsp;**17** |
| &nbsp;&nbsp;Finland |  | &nbsp;&nbsp;169 |  | &nbsp;&nbsp;**169** |  | &nbsp;&nbsp;184 |  | &nbsp;&nbsp;**184** |
| &nbsp;&nbsp;Denmark | &nbsp;&nbsp;55 |  | &nbsp;&nbsp;80 | &nbsp;&nbsp;**135** | &nbsp;&nbsp;52 |  | &nbsp;&nbsp;250 | &nbsp;&nbsp;**302** |
| &nbsp;&nbsp;Sweden | &nbsp;&nbsp;35 | &nbsp;&nbsp;37 |  | &nbsp;&nbsp;**72** | &nbsp;&nbsp;35 | &nbsp;&nbsp;69 |  | &nbsp;&nbsp;**104** |
| &nbsp;&nbsp;Switzerland | &nbsp;&nbsp;10 |  | &nbsp;&nbsp;50 | &nbsp;&nbsp;**60** | &nbsp;&nbsp;10 |  | &nbsp;&nbsp;275 | &nbsp;&nbsp;**285** |
| &nbsp;&nbsp;Luxembourg | &nbsp;&nbsp;42 |  |  | &nbsp;&nbsp;**42** | &nbsp;&nbsp;42 |  |  | &nbsp;&nbsp;42 |
| &nbsp;&nbsp;Spain |  |  | &nbsp;&nbsp;40 | &nbsp;&nbsp;**40** |  |  |  |  |
| &nbsp;&nbsp;Norway | &nbsp;&nbsp;5 |  |  | &nbsp;&nbsp;**5** | &nbsp;&nbsp;5 |  |  | &nbsp;&nbsp;**5** |
| &nbsp;&nbsp;**Sub-total members** | &nbsp;&nbsp;**389** | &nbsp;&nbsp;**805** | &nbsp;&nbsp;**2 503** | &nbsp;&nbsp;**3 697** | &nbsp;&nbsp;**436** | &nbsp;&nbsp;**2 092** | &nbsp;&nbsp;**730** | &nbsp;&nbsp;**3 259** |
| &nbsp;&nbsp;***Supranational*** | &nbsp;&nbsp;862 | &nbsp;&nbsp;12 | &nbsp;&nbsp;100 | &nbsp;&nbsp;**974** | &nbsp;&nbsp;828 | &nbsp;&nbsp;12 |  | &nbsp;&nbsp;**840** |
| &nbsp;&nbsp;***Europe (non-members)*** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Great Britain |  |  | &nbsp;&nbsp;350 | &nbsp;&nbsp;**350** |  |  | &nbsp;&nbsp;300 | &nbsp;&nbsp;**300** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Austria |  | &nbsp;&nbsp;131 |  | &nbsp;&nbsp;**131** |  | &nbsp;&nbsp;93 |  | &nbsp;&nbsp;**93** |
| &nbsp;&nbsp;**Sub-total Europe** |  | &nbsp;&nbsp;**131** | &nbsp;&nbsp;**350** | &nbsp;&nbsp;**481** |  | &nbsp;&nbsp;**93** | &nbsp;&nbsp;**300** | &nbsp;&nbsp;**393** |
| &nbsp;&nbsp;***Others*** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Canada | &nbsp;&nbsp;230 | &nbsp;&nbsp;349 |  | &nbsp;&nbsp;**579** | &nbsp;&nbsp;273 | &nbsp;&nbsp;223 | &nbsp;&nbsp;300 | &nbsp;&nbsp;**796** |
| &nbsp;&nbsp;South Korea |  | &nbsp;&nbsp;156 |  | &nbsp;&nbsp;**156** |  | &nbsp;&nbsp;171 |  | &nbsp;&nbsp;**171** |
| &nbsp;&nbsp;New Zealand |  | &nbsp;&nbsp;82 |  | &nbsp;&nbsp;**82** |  | &nbsp;&nbsp;82 |  | &nbsp;&nbsp;**82** |
| &nbsp;&nbsp;Australia |  | &nbsp;&nbsp;60 |  | &nbsp;&nbsp;**60** |  | &nbsp;&nbsp;65 |  | &nbsp;&nbsp;**65** |
| &nbsp;&nbsp;United States of America |  |  | &nbsp;&nbsp;50 | &nbsp;&nbsp;**50** |  |  | &nbsp;&nbsp;100 | &nbsp;&nbsp;**100** |
| &nbsp;&nbsp;**Sub-total Others** | &nbsp;&nbsp;**230** | &nbsp;&nbsp;**646** | &nbsp;&nbsp;**50** | &nbsp;&nbsp;**926** | &nbsp;&nbsp;**273** | &nbsp;&nbsp;**541** | &nbsp;&nbsp;**400** | &nbsp;&nbsp;**1 213** |
| &nbsp;&nbsp;**Grand Total** | &nbsp;&nbsp;**1 481** | &nbsp;&nbsp;**1 595** | &nbsp;&nbsp;**3 003** | &nbsp;&nbsp;**6 079** | &nbsp;&nbsp;**1 537** | &nbsp;&nbsp;**2 738** | &nbsp;&nbsp;**1 430** | &nbsp;&nbsp;**5 705** |

---

● Rating as
 recommended by the Basel Committee (second best external rating) or, when not rated by international rating agencies, internal
 rating

● Securities
 reported at nominal value and excluding accrued interest

FINANCIAL STATEMENTS 2025

**Derivatives**

The CEB uses Interest Rate Swaps (IRS) and Currency Interest Rate Swaps (CIRS) to hedge market risk on its lending, investment and funding transactions.

Derivatives transactions require prior credit clearance of the counterparty by the Credit Risk Committee and the signing of an ISDA<sup>4</sup> Master Agreement and a Credit Support Annex (CSA), which defines the terms for the provision of collateral with the derivative counterparty. The CEB has signed ISDA Master Agreements and CSAs with all its derivative counterparties. The majority of these CSAs are two-way CSAs, meaning that both counterparties are required to post collateral, which allows CEB to adapt to market conditions and to obtain the best possible price.

Eligible collateral identified in the CSAs may be cash-euro, or debt securities whose market price is discounted by applying a haircut and whose minimum internal rating must be 7.0 (corresponding to A-). All swap transactions are measured at fair value, and counterparty exposures are monitored daily so that additional collateral can be called under the conditions described in the relevant CSA.

As at 31 December 2025, the Bank had received €404 million and provided €686 million as cash collateral, covering all net present values (negative and positive) of the swap portfolio.

In accordance with CRR2/CRD5<sup>5</sup>, the regulation and the directive prescribing how to assess the counterparty credit risk (CCR) on derivatives exposures, the CEB considers the SA-CCR method on netting agreements and the collateral flows.

As at 31 December 2025, the CCR exposure of the Bank's derivatives was €315 million (€403 million in 2024).

**Breakdown of the swap notional values by type and maturity**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| <br>&nbsp;&nbsp;€ million | <br>&nbsp;&nbsp;**< 1 year** | <br>&nbsp;&nbsp;**1 to 5Y** | &nbsp;&nbsp;**2025**<br>&nbsp;&nbsp;**5 to 10Y** | <br>&nbsp;&nbsp;**> 10Y** | <br>&nbsp;&nbsp;**Total** | <br>&nbsp;&nbsp;**< 1 year** | <br>&nbsp;&nbsp;**1 to 5Y** | &nbsp;&nbsp;**2024**<br>&nbsp;&nbsp;**5 to 10Y** | <br>&nbsp;&nbsp;**> 10Y** | <br>&nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;Cross currency swaps | &nbsp;&nbsp;5 024 | &nbsp;&nbsp;10 750 | &nbsp;&nbsp;594 | &nbsp;&nbsp;136 | &nbsp;&nbsp;**16 504** | &nbsp;&nbsp;5 706 | &nbsp;&nbsp;10 746 | &nbsp;&nbsp;627 | &nbsp;&nbsp;151 | &nbsp;&nbsp;**17 229** |
| &nbsp;&nbsp;Interest rate swaps | &nbsp;&nbsp;4 749 | &nbsp;&nbsp;13 588 | &nbsp;&nbsp;12 844 | &nbsp;&nbsp;8 576 | &nbsp;&nbsp;**39 757** | &nbsp;&nbsp;6 877 | &nbsp;&nbsp;13 744 | &nbsp;&nbsp;13 226 | &nbsp;&nbsp;7 913 | &nbsp;&nbsp;**41 761** |
| &nbsp;&nbsp;**Total** | &nbsp;&nbsp;**9 773** | &nbsp;&nbsp;**24 338** | &nbsp;&nbsp;**13 438** | &nbsp;&nbsp;**8 711** | &nbsp;&nbsp;**56 261** | &nbsp;&nbsp;**12 583** | &nbsp;&nbsp;**24 490** | &nbsp;&nbsp;**13 853** | &nbsp;&nbsp;**8 064** | &nbsp;&nbsp;**58 991** |

---

<sup>4</sup> International Swaps and Derivatives Association.

<sup>5</sup> Capital Requirements Regulation 2: Regulation (EU) 2019/876 / Capital Requirements Directive 5: Directive (EU) 2019/878.

FINANCIAL STATEMENTS 2025

**CEB's exposure to the public sector<sup>6</sup> by type of instrument (loan and securities)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| <br>&nbsp;&nbsp;€ **million** | <br>**Loans** | **2025**<br>**Securities** | <br>**Total** | <br>**Loans** | **2024**<br>**Securities** | <br>**Total** |
| &nbsp;&nbsp;***Euro area Countries*** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;France | 1 188 | 1 770 | **2 959** | 1 081 | 964 | **2 044** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Spain | 2 038 | 40 | **2 078** | 2 078 |  | **2 078** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Germany | 1 168 | 262 | **1 430** | 1 169 | 331 | **1 500** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Belgium | 1 210 | 202 | **1 412** | 962 | 17 | **980** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Italy | 1 298 |  | **1 298** | 1 331 |  | **1 331** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Finland | 689 | 169 | **858** | 729 | 139 | **868** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lithuania | 821 |  | **821** | 868 |  | **868** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Slovak Republic | 787 |  | **787** | 991 |  | **991** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Croatia | 583 |  | **583** | 691 |  | **691** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Netherlands | 463 | 113 | **576** | 488 | 113 | **601** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ireland | 525 |  | **525** | 492 |  | **492** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cyprus | 267 |  | **267** | 283 |  | **283** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Estonia | 219 |  | **219** | 220 |  | **220** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Greece | 218 |  | **218** | 218 |  | **218** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Slovenia | 184 |  | **184** | 187 |  | **187** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Portugal | 149 |  | **149** | 246 |  | **246** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Austria |  | 131 | **131** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Luxembourg |  | 42 | **42** |  | 42 | **42** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Latvia | 23 |  | **23** |  |  |  |
| &nbsp;&nbsp;**Sub-total euro area (a)** | **11 831** | **2 729** | **14 561** | **12 035** | **1 606** | **13 640** |
| &nbsp;&nbsp;***Other EU Countries*** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Poland | 1 703 |  | **1 703** | 1 457 |  | **1 457** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hungary | 767 |  | **767** | 726 |  | **726** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sweden | 520 | 35 | **555** | 520 | 43 | **562** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Romania | 389 |  | **389** | 420 |  | **420** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Czech Republic | 386 |  | **386** | 384 |  | **384** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bulgaria | 308 |  | **308** | 224 |  | **224** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Denmark |  | 55 | **55** |  | 52 | **52** |
| &nbsp;&nbsp;**Sub-total other EU (b)** | **4 074** | **90** | **4 164** | **3 729** | **95** | **3 824** |
| &nbsp;&nbsp;**Total EU countries (a) + (b)** | **15 905** | **2 820** | **18 725** | **15 764** | **1 700** | **17 464** |
| &nbsp;&nbsp;***Non-EU countries*** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Türkiye | 1 537 |  | **1 537** | 1 436 |  | **1 436** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Serbia | 823 |  | **823** | 768 |  | **768** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ukraine | 459 |  | **459** | 116 |  | **116** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Albania | 91 |  | **91** | 106 |  | **106** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bosnia and Herzegovina | 78 |  | **78** | 83 |  | **83** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;North Macedonia | 71 |  | **71** | 78 |  | **78** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Montenegro | 70 |  | **70** | 81 |  | **81** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Iceland | 52 |  | **52** | 35 |  | **35** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Republic of Moldova | 50 |  | **50** | 58 |  | **58** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Kosovo | 44 |  | **44** | 45 |  | **45** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Georgia | 14 |  | **14** | 14 |  | **14** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Andorra | 12 |  | **12** | 13 |  | **13** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;San Marino | 7 |  | **7** | 8 |  | **8** |
| &nbsp;&nbsp;**Sub-total non-EU (c)** | **3 308** |  | **3 308** | **2 840** |  | **2 840** |
| &nbsp;&nbsp;***Other countries*** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Canada |  | 249 | **249** |  | 236 | **236** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;South Korea |  | 156 | **156** |  | 171 | **171** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;New Zealand |  | 82 | **82** |  | 82 | **82** |
| &nbsp;&nbsp;**Sub-total Other Countries (d)** |  | **486** | **486** |  | **489** | **489** |
| &nbsp;&nbsp;***Supranational Institutions*** | 274 | 974 | **1 248** | **212** | **840** | **1 052** |
| &nbsp;&nbsp;**Sub-total Supranational (e)** | **274** | **974** | **1 248** | **212** | **840** | **1 052** |
| &nbsp;&nbsp;**Total (a)+(b)+(c)+(d)+(e)** | **19 487** | **4 280** | **23 767** | **18 816** | **3 029** | **21 845** |

---

<sup>6</sup> Public sector refers in this document to Sovereign (States), Sub-Sovereign (Regional and Local authorities), and their Promotional Financial Institutions.

FINANCIAL STATEMENTS 2025

**Concentration –** **Large Exposures**

Concentration risk arises from too high a proportion of the portfolio being allocated to a specific country or obligor or to a particular type of instrument or individual transaction. Large exposure is the overall exposure (loans, securities, deposits and derivatives) to a single counterparty or a group of connected counterparties, exceeding 10% of prudential equity (paid-in capital, reserves and net profit).

In line with the Basel Committee recommendations and the EU directives, the CEB ensures that no exposure to a counterparty or group of connected counterparties exceeds the limit of 25% of prudential equity, and that the cumulative total of large exposures does not exceed 800% of prudential equity. Sovereign exposure is excluded from the large exposure calculation.

The CEB adopts the following risk concentration criteria:

&nbsp;&nbsp;&nbsp;&nbsp;· Direct
 Exposure over group: within a group of counterparties connected by a control relationship
 (subsidiaries and branches), even if there is no guarantee.

&nbsp;&nbsp;&nbsp;&nbsp;· Indirect
Exposure over group: when an entity has provided its guarantee to another, even if they are not connected by a control relationship.

As at 31 December 2025:

&nbsp;&nbsp;&nbsp;&nbsp;· Prudential
Equity amounted to €4.6 billion (compared to €4.1 billion at year-end 2024).

&nbsp;&nbsp;&nbsp;&nbsp;· Eight
counterparties or groups of counterparties were considered as Large Exposure (thirteen in 2024).

&nbsp;&nbsp;&nbsp;&nbsp;· No
counterparty or group of connected counterparties exceeded the limit of 25% of the CEB's prudential equity (as in 2024).

&nbsp;&nbsp;&nbsp;&nbsp;· The
total amount outstanding to these counterparties stood at €4.8 billion, i.e. 105% of the CEB's prudential equity, well below the
800% limit (31 December 2024: €6.9 billion, i.e. 167% of the CEB's prudential equity).

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| &nbsp;&nbsp;Number of counterparties in Large Exposure | 8 | 13 |
| &nbsp;&nbsp;Total Large Exposures in % of Equity | 105% | 167% |
| &nbsp;&nbsp;Total Large Exposures (€ million) | 4 784 | 6 886 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*of which Loans* (€ million) | *2 921* | *3 334* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*of which Finance* (€ million) | *1 863* | *3 552* |

---

· Loans reported
 after CRM (without collateral) at nominal value and excluding accrued interest

· "Finance" means
 Securities, Money market, Nostro, derivatives & Forex

**Balance sheet Optimisation Initiative - Sovereign Exposure Exchange Agreement**

In 2025, the Bank entered into its first Exposure Exchange Agreement (EEA) transaction, following the execution of a bilateral Master Exposure Exchange Agreement. This transaction enabled CEB (in line with the practice of peer multilateral development banks) to optimise its capital resources by reallocating sovereign credit exposures from countries with higher concentrations to those with lower exposure levels.

Under the terms of the EEA, CEB provided credit protection for Argentina (€68.4 million), Brazil (€351.6 million), Colombia (€40 million), and Mexico (€40 million), while receiving credit protection for Bosnia and Herzegovina (€20 million), Republic de Moldova (€12 million), Romania (€20 million), Serbia (€98 million), and Türkiye (€350 million).

The EEA was implemented in full compliance with CEB's internal limit framework. The total exposure for which CEB provided credit protection accounts for less than 15% of the Bank's total sovereign loan exposure, and none of the sovereign exposures for which CEB provided credit protection rank among CEB's ten largest exposures.

As at 31 December 2025, there were no non-accrual events under the EEA.

FINANCIAL STATEMENTS 2025

**2. MARKET RISK**

Market risk is the risk of losses from adverse movements in financial markets such as interest rates or foreign exchange rates. Since the Bank has no trading activities and only minimal FX exposure, no capital charge is required for market risk.

**A. Interest rate risk**

Interest rate risk is the risk that adverse interest rate movements affect the Bank's earnings or capital due to mismatches between the rate profiles of assets and liabilities.

**Interest rate risk management**

Interest rate risk management is handled by the Finance Directorate, with monthly monitoring by the Risk & Control Directorate, while ALCO oversees the Bank's overall interest rate position and related decisions.

The CEB manages interest rate risk prudently across the balance-sheet, mainly by using micro- or macro-hedging derivatives to convert assets and liabilities into euro-denominated variable-rate instruments. This approach is designed to preserve the Bank's financial stability and protect its earnings and capital base.

The CEB is structurally exposed to interest rate risk on its equity because equity is not interest rate sensitive and cannot be matched with interest-rate-sensitive assets. To manage this exposure, the Bank applies a convention for the repricing profile and duration of equity, which is reviewed regularly in line with its risk appetite and market conditions. At end-2025, the conventional duration for equity investments is six years, with equity invested in euro-denominated fixed-rate loans and securities.

**Interest rate risk measurement**

The Bank measures interest rate risk in line with Basel/EU/European Banking Authority (EBA) regulations, focusing on the impact of interest rate shocks on the Economic Value of Equity (EVE) and Net Interest Income (NII).

The **EVE sensitivity** is the Bank's primary metric within its risk appetite framework. It measures the change in the net present value of the Balance sheet (excluding equity) under the six supervisory shock scenarios defined by the EBA. The framework limits the impact of the most severe shock, in absolute terms, to 20% of prudential equity. The table below presents the impact of the most severe shock on EVE.

---

| | | |
|:---|:---|:---|
| **Most severe EBA shock** | **2025** | **2024** |
| +200bp interest rate shock | -13.3% | -10.7% |

---

The CEB monitors the **NII sensitivity** to ensure that interest rate movements do not materially reduce the Bank's revenues. This metric is calculated in accordance with the EBA methodology (going-concern basis, one-year horizon, and EBA instantaneous interest rate shocks). The table below presents the NIl sensitivities at end of 2025 and end of 2024.

---

| | | |
|:---|:---|:---|
| **EBA shocks** (€ million) | **2025** | **2024** |
| +200bp interest rate shock | -45.1 | -5.4 |
| -200bp interest rate shock | 46.4 | 8.0 |

---

The CEB monitors the **interest rate duration of equity investments**, to track any deviation between the actual duration and the conventional target duration set by ALCO. The table below shows the duration at end of 2024 and 2025. The target duration is 6 years.

---

| | | |
|:---|:---|:---|
| | **2025** | **2024** |
| Interest rate duration of equity investments | 6.7 years | 5.2 years |

---

The CEB monitors the **sensitivity of the market value of securities portfolios to changes in interest rates and credit spreads** to monitor potential impacts on liquidity and capital. The table below presents these sensitivities at year-end 2025 for the portfolio measured at amortised cost (ACP), and the portfolios measured at Fair Value through Other Comprehensive Income (FVOCI), i.e. Short-Term Liquidity (STL) Portfolio and FVOCI Portfolio.

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;€ million | **Amortised Cost**<br> **Portfolio (ACP)** | **FVOCI Portfolios**<br> **(STL + FVOCI)** |
| +200bp interest rate shock | -355 | -18 |
| +200bp credit spread shock | -355 | -199 |

---

FINANCIAL STATEMENTS 2025

The CEB monitors interest rate risk through static **interest rate repricing gaps,** which illustrate how mismatches in the timing of interest rate resets between assets and liabilities can affect earnings. The tables below present the interest rate gap as at 31 December 2025 versus 2024, with assets and liabilities grouped into time bands based on their maturity or next interest rate reset date. The gap in each time band reflects the Bank's static interest rate risk exposure.

**Interest rate repricing gaps**

€ thousand

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | | | | **Undefined** | |
| <br>**31 December 2025** | **Up to**<br>**1 month** | **3 months**<br>**up to 1 year** | **1 to**<br>**5 years** | **More than**<br>**5 years** | **Undefined** | **Net book**<br>**value** |
| **Assets** |  |  |  |  |  |  |
| Cash in hand, balances with central banks | 504 820 |  |  |  |  | 504 820 |
| Financial assets at fair value through equity\* | 565 243 | 531 366 |  |  | (58 839) | 2 990 486 |
| Financial assets at amortised cost |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans\* | 5 236 021 | 450 134 | 870 532 | 989 680 | (757 723) | 22 771 841 |
| &nbsp;&nbsp;&nbsp;&nbsp;Advances | 2 068 765 | 1 871 170 |  |  | 58 486 | 7 092 814 |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt securities |  | 298 601 | 896 857 | 1 843 834 | (132 748) | 2 926 544 |
| Deposits of guarantees paid | 686 872 |  |  |  | (295) | 686 576 |
| Other assets |  |  |  |  | 2 065 217 | 2 065 217 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Sub-total of assets** | **9 061 720** | **3 151 271** | **1 767 389** | **2 833 514** | **1 174 097** | **39 038 298** |
| **Liabilities** |  |  |  |  |  |  |
| Financial liabilities at amortised cost |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Amounts owed to credit institutions and to customers | (58 218) | (804) | (284) | (62) |  | (63 108) |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt securities in issue\* | (19 838 096) | (37 504) |  |  | 1 037 329 | (31 370 852) |
| Deposits of guarantees received | (405 112) |  |  |  |  | (405 112) |
| Provisions for risk and charges | (663) | (5 963) | (45 719) | (259 482) |  | (313 152) |
| Other liabilities |  |  |  |  | (2 011 827) | (2 011 827) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Sub-total of liabilities** | **(20 302 088)** | **(44 272)** | **(46 003)** | **(259 544)** | **(974 498)** | **(34 164 051)** |
| **Equity** |  |  |  |  | **(4 874 247)** | **(4 874 247)** |
| **Net during the period** | **(11 240 368)** | **3 106 999** | **1 721 385** | **2 573 970** | **(4 674 648)** |  |
| **Cumulative net during the period** | **(11 240 368)** | **379 293** | **2 100 678** | **4 674 648** |  |  |
| \**after hedging* |  |  |  |  |  |  |
|  |  |  |  |  |  | € thousand |
|  | **Up to** | **3 months** | **1 to** | **More than** | **Undefined** | **Net book** |
| **31 December 2024** | **1 month** | **up to 1 year** | **5 years** | **5 years** | **Undefined** | **value** |
| **Assets** |  |  |  |  |  |  |
| Cash in hand, balances with central banks | 608 615 |  |  |  |  | 608 615 |
| Financial assets at fair value through equity\* | 1 186 143 | 51 366 |  |  | (64 795) | 3 291 324 |
| Financial assets at amortised cost |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans\* | 5 382 970 | 586 450 | 709 282 | 981 485 | (592 055) | 22 301 631 |
| &nbsp;&nbsp;&nbsp;&nbsp;Advances | 3 249 582 |  |  |  | 122 430 | 6 872 787 |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt securities | 63 400 | 230 285 | 1 001 138 | 952 404 | (2 635) | 2 338 292 |
| Deposits of guarantees paid | 442 189 |  |  |  | (370) | 441 820 |
| Other assets |  |  |  |  | 2 758 816 | 2 758 816 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Sub-total of assets** | **10 932 899** | **868 101** | **1 710 420** | **1 933 889** | **2 221 392** | **38 613 285** |
| **Liabilities** |  |  |  |  |  |  |
| Financial liabilities at amortised cost |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Amounts owed to credit institutions and to customers | (95 546) | (1 070) | (1 239) | (338) |  | (98 251) |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt securities in issue\* | (17 421 164) | (37 504) |  |  | 140 566 | (30 873 212) |
| Deposits of guarantees received | (790 434) |  |  |  |  | (790 434) |
| Provisions for risk and charges | (600) | (5 400) | (39 604) | (289 473) |  | (336 277) |
| Other liabilities |  |  |  |  | (1 795 679) | (1 795 679) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Sub-total of liabilities** | **(18 307 744)** | **(43 975)** | **(40 843)** | **(289 811)** | **(1 655 113)** | **(33 893 853)** |
| **Equity** |  |  |  |  | **(4 719 432)** | **(4 719 432)** |
| **Net during the period** | **(7 374 845)** | **824 126** | **1 669 577** | **1 644 078** | **(4 153 153)** |  |
| **Cumulative net during the period** | **(7 374 845)** | **839 498** | **2 509 075** | **4 153 153** |  |  |
| *\*after hedging* |  |  |  |  |  |  |

---

FINANCIAL STATEMENTS 2025

**B.** **Foreign exchange risk**

Foreign exchange risk is managed by the Finance Directorate and monitored by the Risk & Control Directorate, which provides independent oversight of the main financial risks.

The Bank measures its currency exposure by calculating spot net open positions: assets minus liabilities per currency, including off-Balance sheet positions.

Residual currency risk mainly stems from net interest cash flows in non-euro currencies. **The limit for each net open position is €1 million,** measured at month-end, with a five-working days span to close any excess exposure.

**Residual foreign exchange exposure after taking hedging instruments into account**

€ thousand

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Breakdown by currency** | **Assets** | **Liabilities** | **Derivative <br> Instruments** | **Net position <br> 2025** | **Assets** | **Liabilities** | **Derivative <br> Instruments** | **Net position <br> 2024** |
| United States Dollar | 1 004 360 | 6 894 699 | 5 891 549 | 1 210 | 2 124 547 | 7 285 542 | 5 160 960 | (35) |
| Australian Dollar | 97 518 | 904 489 | 807 690 | 719 | 7 256 | 620 309 | 614 119 | 1 066 |
| Swiss franc | 455 249 | 216 487 | (238 364) | 398 | 319 757 | 214 259 | (105 177) | 321 |
| Hong Kong Dollar | 11 730 | 623 667 | 612 263 | 326 | 259 087 | 350 629 | 91 415 | (127) |
| Canadian Dollar | 107 718 | 205 049 | 97 588 | 257 | 4 554 | 204 976 | 200 696 | 274 |
| Swedish Krona | 535 985 | 62 752 | (473 112) | 121 | 631 898 | 60 125 | (571 657) | 116 |
| Pound Sterling | 87 996 | 2 512 831 | 2 424 937 | 102 | 77 256 | 3 388 749 | 3 311 705 | 212 |
| Other currencies | 1 600 152 | 693 975 | (906 009) | 168 | 1 472 569 | 324 304 | (1 147 970) | 295 |
| **Total** | **3 900 708** | **12 113 949** | **8 216 542** | **3 301** | **4 896 924** | **12 448 893** | **7 554 091** | **2 122** |

---

**3. LIQUIDITY RISK**

Liquidity risk is the risk of losses arising when the Bank cannot meet its payment obligations in full and on time.

Liquidity risk is inherent to the Bank's business model and results mainly from maturity mismatches between assets and liabilities. It may be more significant for the CEB because, unlike commercial banks, the CEB does not collect customer deposits and has no access to central bank refinancing.

Liquidity risk comprises two components:

· Funding
liquidity risk – the risk of being unable to meet payment obligations due to an inability to raise new funding

· Market liquidity
risk – the risk of being unable to sell or convert liquid assets into cash without incurring significant losses.

**A. Liquidity risk management.**

Liquidity risk management is essential to preserving the Bank's financial flexibility, particularly when market conditions restrict access to long-term funding.

The Bank manages this risk prudently by setting liquidity indicators across multiple time horizons and maintaining sufficient liquid assets to continue ongoing operations even under severe stress, when new funding may not be available.

The Finance Directorate manages the liquidity position and compliance with exposure limits, while the Risk & Control Directorate performs daily monitoring. The Asset and Liability Committee (ALCO) oversees funding and liquidity and addresses related risks.

A core principle of the Bank's funding strategy is diversification. The Bank diversifies its issuance programmes, funding markets, and investor base to avoid excessive reliance on any single source, while ensuring that maturity mismatches between assets and liabilities remain limited. This strategy is carried out within the annual borrowing authorisation approved by the Administrative Council.

To manage liquidity risk, the Bank maintains a liquidity reserve composed of highly rated, liquid securities expected to retain value and market liquidity under stress. Most of these securities qualify as High-Quality Liquid Assets (HQLA) for the LCR. At end of 2025, HQLA-eligible securities amounted to €4.1 billion after haircuts (2024: €3.6 billion).

Finally, the CEB operates an internal Contingency Funding Plan (CFP) defining escalation steps, communication processes and decision-making procedures in case of severe liquidity shortfalls.

FINANCIAL STATEMENTS 2025

**B. Liquidity risk measurement**

The Bank assesses liquidity risk through a combination of internal metrics and Basel/EU regulatory metrics.

**The Survival Horizon (SH)** is the Bank's main liquidity risk metric and is part of the risk appetite framework. It measures how long the Bank can meet its payment obligations from ongoing operations under a severe stress scenario using its available liquid assets. This scenario assumes no market access to new funding, stressed loan repayment, reduced liquid asset values, and stressed collateral requirements on derivatives. The SH limit is 12 months. At end of 2025, it stood at 17 months (2024: 18 months).

---

| | | |
|:---|:---|:---|
| | **2025** | **2024** |
| Survival Horizon (SH) | 17 months | 18 months |

---

Although not subject to the international regulatory framework, the CEB also complies with **the Basel/EU Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR),** both included in the risk appetite framework with a minimum of 100%. At year-end 2025, the LCR was 672%<sup>7</sup> (2024: 606%) and the NSFR was 138% (2024: 134%).

---

| | | |
|:---|:---|:---|
| **Regulatory Ratios** | **2025** | **2024** |
| Liquidity Coverage Ratio (LCR) | 672% | 606% |
| Net Stable Funding Ratio (NSFR) | 138% | 134% |

---

The CEB also monitors the **Short-Term Liquidity Ratios (STLR),** based on S&P's methodology. These ratios compare liquidity sources with liquidity needs under stressed market conditions over one to twelve month horizons, with a minimum requirement of 100%. As at 31 December 2025, the STLR values were:

---

| | | |
|:---|:---|:---|
| **STLR** | **2025** | **2024** |
| 1 month | 589% | 726% |
| 3 months | 322% | 285% |
| 6 months | 178% | 180% |
| 12 months | 138% | 145% |

---

Finally, the CEB monitors static **liquidity gaps,** which measure potential future maturity mismatches between assets and liabilities. The tables present these potential future maturity mismatches by presenting the undiscounted principal and interest cash flows of financial instruments until their maturity<sup>8</sup>.

<sup>7</sup> Average of the last twelve month-end LCR.

<sup>8</sup> Cash flows are reported net for interest rate swaps and gross for currency swaps and FX forwards, based on the exchange and interest rates at the reporting date.

FINANCIAL STATEMENTS 2025

**Liquidity gaps**

€ thousand

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Current outstanding** | **Current outstanding** | **Non-current outstanding** | |
| <br>**31 December 2025** | **Up to**<br>**1 month** | **3 months**<br>**up to 1 year** | **More than**<br>**5 years** | <br>**Total** **.** |
| **Assets** |  |  |  |  |
| Cash in hand, balances with central banks | 504 942 |  |  | **504 942** |
| Financial assets at fair value through equity | 5 189 | 870 740 | 1 199 784 | **3 378 999** |
| Financial assets at amortised cost |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans | 140 965 | 2 893 182 | 13 129 669 | **27 324 159** |
| &nbsp;&nbsp;&nbsp;&nbsp;Advances | 1 505 607 | 3 356 397 |  | **7 139 305** |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt securities | 2 532 | 361 966 | 2 380 695 | **3 706 876** |
| Deposits of guarantees paid | 686 872 |  |  | **686 872** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Sub-total of assets** | **2 846 106** | **7 482 285** | **16 710 148** | **42 741 152** |
| **Liabilities** |  |  |  |  |
| Financial liabilities at amortised cost |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Amounts owed to credit institutions and to customers | 752 | 6 731 | 24 839 | **69 063** |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt securities in issue | 191 294 | 5 052 739 | 8 425 081 | **34 316 837** |
| Deposits of guarantees received | 405 112 |  |  | **405 112** |
| Social Impact Account | 56 892 |  |  | **56 892** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Sub-total of liabilities** | **654 050** | **5 059 470** | **8 449 920** | **34 847 903** |
| **Off-balance sheet** |  |  |  |  |
| Financing commitments | (199 500) | (2 058 500) | (777 634) | **(6 912 298)** |
| Term financial instruments |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;To be received | 893 353 | 3 759 797 | 3 234 727 | **22 696 861** |
| &nbsp;&nbsp;&nbsp;&nbsp;To be paid | (777 609) | (3 923 665) | (2 693 822) | **(22 664 523)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Sub-total of off-balance sheet** | **(83 756)** | **(2 222 367)** | **(236 728)** | **(6 879 960)** |
| **Total** | **2 108 300** | **200 448** | **8 023 499** | **1 013 289** |
|  |  |  |  | € thousand |
|  | **Current outstanding** | **Current outstanding** | **Non-current outstanding** |  |
| **31 December 2024** | **Up to**<br> **1 month** | **3 months**<br> **up to 1 year** | **More than**<br> **5 years** | **Total** **.** |
| **31 December 2024** | **Up to**<br> **1 month** | **3 months**<br> **up to 1 year** | **More than**<br> **5 years** |  |
| **Assets** |  |  |  |  |
| Cash in hand, balances with central banks | 608 810 |  |  | **608 810** |
| Financial assets at fair value through equity | 4 548 | 1 291 385 | 1 112 437 | **3 690 234** |
| Financial assets at amortised cost |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans | 87 072 | 2 580 027 | 12 536 959 | **26 022 232** |
| &nbsp;&nbsp;&nbsp;&nbsp;Advances | 2 188 912 | 2 987 765 |  | **6 944 079** |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt securities | 17 095 | 281 981 | 1 272 476 | **2 780 451** |
| Deposits of guarantees paid | 442 189 |  |  | **442 189** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Sub-total of assets** | **3 348 626** | **7 141 158** | **14 921 872** | **40 487 995** |
| **Liabilities** |  |  |  |  |
| Financial liabilities at amortised cost |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Amounts owed to credit institutions and to customers | 1 249 | 10 404 | 38 038 | **105 684** |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt securities in issue | 147 484 | 3 451 116 | 8 419 745 | **33 766 243** |
| Deposits of guarantees received | 790 434 |  |  | **790 434** |
| Social Impact Account | 50 144 |  |  | **50 144** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Sub-total of liabilities** | **989 311** | **3 461 520** | **8 457 783** | **34 712 505** |
| **Off-balance sheet** |  |  |  |  |
| Financing commitments | (310 000) | (1 846 000) | (743 459) | **(6 608 521)** |
| Term financial instruments |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;To be received | 1 448 808 | 4 020 482 | 2 491 185 | **22 862 026** |
| &nbsp;&nbsp;&nbsp;&nbsp;To be paid | (1 405 992) | (4 123 584) | (2 225 283) | **(22 102 942)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Sub-total of off-balance sheet** | **(267 184)** | **(1 949 102)** | **(477 557)** | **(5 849 437)** |
| **Total** | **2 092 131** | **1 730 536** | **5 986 532** | **(73 947)** |

---

FINANCIAL STATEMENTS 2025

**4. OPERATIONAL RISK**

The CEB implemented an Operational Risk Management Policy to codify its approach to identifying, measuring, controlling, and reporting operational risks. The policy lays out sound practices to ensure effective and consistent operational risk management across the CEB.

Operational risk is the risk of potential loss resulting from inadequate or failed internal processes, people and systems or external events. Moreover, the CEB also considers reputational and legal risks that may adversely impact its activities.

Inspired by the Basel Committee on Banking Supervision principles and international best practices, the Bank is committed to continuously assessing its operational risk and implementing the appropriate mitigating measures.

The CEB's operational risk framework is reviewed and approved by the Committee for Operational Risks and Organisation (CORO) at their semi-annual meetings. Chaired by the Governor and composed of Senior Management, CORO sets acceptable levels for the operational risks faced by the CEB and ensures that directors take the necessary steps to monitor and control these risks within their respective directorates.

In close co-operation with business lines, the Operational Risk Unit (ORU) manages the implementation of the operational risk framework centrally and electronically. Risk identification evaluation and mitigation follow a predefined methodology and a targeted action plan. The operational risk incidents, including "near misses", are also integrated to ensure the control framework's effectiveness and completeness through risk mapping and assessment.

ORU ensures the adequate design and effectiveness of the internal control framework through regular testing of key controls covering the main risks in each business line. The results are reported to the CORO. Each business unit annually asserts the efficiency of its respective permanent internal control environment.

To maintain a comprehensive procedure and control map, ORU is also responsible for modelling procedures in collaboration with the business lines. A dedicated intranet site provides all staff access to such procedures.

The CEB has a Business Continuity Plan (BCP) to hedge against disruptions in its business activities. The BCP comprises a crisis management plan and an underlying technical framework, including data centres, emergency dealing room, user back-up positions, telecommuting solutions, and business line-specific plans.

The operational risk capital charge is included in the Bank's Capital Adequacy Ratio under the risk appetite framework. The CEB applies the Basic Indicator Approach, which calculates the requirement based on the average net banking income of the past three years.

As at 31 December 2025, the Risk-Weighted Assets (RWA) for operational risk amounted to €342 million (compared to €320 million at year-end 2024), i.e. a capital charge for operational risk of €27.4 million, compared to €25.6 million at year-end 2024.

FINANCIAL STATEMENTS 2025

**5. CLIMATE RISK**

The CEB recognises the significant role of climate risk alongside the traditional types of risk identified, such as credit, interest rate, foreign exchange, liquidity, and operational risk.

The Bank does not only consider climate risk as a stand-alone risk category but also as an interconnecting risk with the potential to impact any other type of risk. Climate-related risks are divided into two major categories: physical and transition risks. Physical risks refer to the direct physical impacts of climate change. Physical risks resulting from climate change can be event-driven (acute) or longer-term (chronic) shifts in climate patterns. Transition risks cover the transition to a lower-carbon economy. Transitioning to a lower carbon economy may entail extensive policy, legal, technology, and market changes to address mitigation and adaptation requirements related to climate change.

CEB's climate-related risk mapping identifies the challenges and opportunities that arise from climate change shocks, since all risk categories - credit, market, liquidity, operational and reputational risk - may be impacted.

In addition to assessing how climate risk may impact the Bank's overall risk profile, the CEB identifies and assesses climate-related risks at the individual project and counterparty levels.

CEB's loan portfolio is materially exposed to sovereign risk. Consequently, the CEB has developed a climate scorecard for sovereigns. The scorecard captures physical risk, transition risk and readiness. The CEB has also developed a climate scorecard for local and regional authorities. Going forward, climate scorecards for other types of counterparties will be developed. The output from these scorecards will enable the CEB to map and benchmark its counterparties according to their climate risk exposure.

The CEB publishes annually a Task Force on Climate-Related Financial Disclosures (TCFD) report.

**6. RISK APPETITE FRAMEWORK**

As a multilateral development bank (MDB), the CEB is not subject to its member states' regulatory frameworks, the Basel Committee recommendations or EU directives. However, it is the Bank's policy to follow best banking practices, according to its MDB status, by making all necessary adjustments. To this end, the CEB has established a set of risk indicators and ratios, with their associated limits, to assess and monitor the risks arising from its activities.

The ratios and indicators are organised around five main areas: capital, leverage, liquidity, market risk and credit risk in finance activity.

In the reporting period ending 31 December 2025, all ratios and indicators were well within their authorised limits.

**Capital**

**Capital Adequacy Ratio (CAR) measures** the Bank's Prudential Equity<sup>9</sup> relative to its total Risk-Weighted Assets (RWA). The Bank uses the Pillar I Standardised Approach, applying risk-weight factors based on the counterparty's type and rating (and in case of bank exposures, the maturity).

The Bank monitors the CAR to ensure it maintains sufficient capital to absorb unexpected losses from credit, market and operational risks. Although the risk appetite framework floor is set at 10.5%, the Bank targets a level above 20% to maintain first-rank financial fundamentals and aims for a comfort zone above 25%.

At year-end 2025, the CAR stood at 29.2%, broadly stable compared to 29.3% at year-end 2024. Credit risk accounts for 96.0% of total capital requirements: 71.0% from the loan portfolio and 25.0% from finance operations.

---

| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
| Capital Adequacy Ratio <br> (EU CRR - Standard method) | 29.2% | 29.3% |

---

**Gearing Ratio (GR)** measures the outstanding loans (after swap and guarantees) divided by Own Funds<sup>10</sup>, thus establishing a volume ceiling to the Bank's loan activity. This ratio is primarily intended to provide a benchmark with other multilateral development banks. The ceiling limit of the risk appetite framework is 2.5.

---

| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
| Gearing Ratio | 1.85 | 1.81 |

---

<sup>9</sup> Prudential equity includes paid-in capital, reserves and net profit after deduction of adjustment items prescribed in the EU Capital Requirements Directives relevant to the CEB.

<sup>10</sup> Own Funds include subscribed capital, reserves and net profit.

FINANCIAL STATEMENTS 2025

**Leverage**

**Leverage Ratio (LR)** is the ratio of Prudential Equity divided by the exposure value of all assets and off-Balance sheet items. The exposure value of derivatives is calculated with the method used in the capital adequacy ratio standardised approach. The conversion factor for risk-related off-Balance sheet items (financing commitments) is 50%.

The LR provides a simple indicator (considering the gross exposures without any weighting) to complement the capital adequacy ratio to limit excessive leverage of the Bank. This ratio's risk appetite framework floor is 7% to ensure first-rank financial fundamentals.

---

| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
| Leverage Ratio (EU CRR) | 11.2% | 10.4% |

---

**Treasury Asset Ratio (TAR)** compares total financial assets (after considering the hedging swap's fair value) to Prudential Equity. Total financial assets comprise the outstanding amounts in the securities portfolios, bank deposits, repos and nostro accounts, excluding collaterals. The risk-appetite framework ceiling is five times the CEB's Prudential Equity, i.e. €22.9 billion at year-end 2025.

---

| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
| Treasury Asset Ratio | 3.03 | 3.10 |

---

**Liquidity**

**Survival Horizon (SH)** is the key metric used to manage liquidity risk. It is the period during which the Bank is able to fulfil its payment obligations stemming from ongoing business operations under a severe stress scenario without any access to new funding and by using its available liquid assets. The minimum risk-appetite framework level of this indicator is 12 months.

---

| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
| Survival Horizon | 17 months | 18 months |

---

**Liquidity Regulatory Ratios (EU CRR LCR and NSFR):** The Bank requires that the liquidity position be strong enough to fulfil Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) requirements. The risk appetite framework minimum is 100%.

The LCR aims to ensure the Bank holds a sufficient amount of high-quality liquid assets (HQLA) to survive a period of significant liquidity stress lasting 30 calendar days.

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Liquidity Coverage Ratio <sup>11</sup> <br> (EU CRR) | 672% | 606% |

---

The NSFR compares the Bank's available stable funding (ASF) to required stable funding (RSF). In line with supervisory assumptions, different factors reflect the liquidity characteristics of each instrument of the entire Balance sheet.

---

| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
| Net Stable Funding Ratio<br> (EU CRR) | 138% | 134% |

---

**Market Risk**

**Sensitivity of Economic Value of Equity (EVE)** measures the maximum change in the present value of interest-rate-sensitive assets and liabilities (excluding equity) under Basel/EU interest-rate shocks. The risk appetite framework limits the impact of the most severe shock on EVE to no more than 20% of its Prudential Equity, in absolute terms. At year-end 2025, the sensitivity of EVE remained well within this limit, as was also the case in 2024.

---

| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
| Sensitivity of Economic Value of Equity (EVE) | -13.3% | -10.7% |

---

<sup>11</sup> Since 2024, the LCR ratio has been reported as an average of the last twelve end of month LCRs.

FINANCIAL STATEMENTS 2025

**Spot Net Open Position** measures at month-end the total asset amount minus the total liability amount in a foreign currency, including both on-and off-Balance sheet positions.

The risk appetite framework ceiling is, in absolute value, €1 million at month-end per currency. At year-end 2025, it was well within the limit, as in 2024.

**Credit Risk in finance activity**

The CEB defines minimum credit quality, i.e. **minimum internal ratings,** at the trade date under which the Bank may enter into transactions with issuers, obligors and counterparties, based on the investment maturity (deposits and securities) and the type of counterparty.

In 2025, all counterparties and transactions met these minimum thresholds on the trade date, as was the case in 2024.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Up to 3 M** | **3 to 6 M** | **6 M to 1 Y** | **1 Y to 2 Y** | **2 Y to 5 Y** | **> 5 Y** |
| Sovereign | &nbsp;&nbsp;&nbsp;**5.5** (BBB-) | &nbsp;&nbsp;&nbsp;**5.5** (BBB-) | &nbsp;&nbsp;&nbsp;**7.0** (A-) | &nbsp;&nbsp;&nbsp;**7.0** (A-) | &nbsp;&nbsp;&nbsp;**8.0** (A+) | **8.5** (AA-)\* |
| Sub-sovereign, agency, supranational | &nbsp;&nbsp;&nbsp;**6.0** (BBB) | &nbsp;&nbsp;&nbsp;**7.0** (A-) | &nbsp;&nbsp;&nbsp;**7.0** (A-) | &nbsp;&nbsp;&nbsp;**7.0** (A-) | &nbsp;&nbsp;&nbsp;**8.0** (A+) | **8.5** (AA-) |
| Financial Institution | &nbsp;&nbsp;&nbsp;**6.5** (BBB+) | &nbsp;&nbsp;&nbsp;**7.0** (A-) | &nbsp;&nbsp;&nbsp;**7.0** (A-) | &nbsp;&nbsp;&nbsp;**7.0** (A-) | &nbsp;&nbsp;&nbsp;**8.5** (AA-) | Not allowed |
| Corporate | &nbsp;&nbsp;&nbsp;**8.5** (AA-) | &nbsp;&nbsp;&nbsp;**8.5** (AA-) | &nbsp;&nbsp;&nbsp;**8.5** (AA-) | &nbsp;&nbsp;&nbsp;**8.5** (AA-) | &nbsp;&nbsp;&nbsp;**9.5** (AA+) | Not allowed |
| Covered Bond (rating of issue, not issuer) | &nbsp;&nbsp;&nbsp;**7.5** (A) | &nbsp;&nbsp;&nbsp;**8.0** (A+) | &nbsp;&nbsp;&nbsp;**8.0** (A+) | &nbsp;&nbsp;&nbsp;**8.0** (A+) | &nbsp;&nbsp;&nbsp;**9.0** (AA) | **8.5** (AA-)\*\* |

---

\* For CEB member states sovereign bonds, the minimum internal rating is 8.0 (A+)

\*\* Only up to 10 Y

FINANCIAL STATEMENTS 2025

**NOTE C - Financial instruments at fair value through profit or loss and hedging derivative financial instruments**

The Bank's hedging derivatives for which the hedging relationship is not recognised by IFRS 9 are recorded under the Balance sheet heading "Financial instruments at fair value through profit or loss".

The Bank's hedging derivatives recognised under IFRS 9 as fair value hedges or cash flow hedges are recorded in the Balance sheet under the heading "Hedging derivative financial instruments". These operations hedge the financial assets and liabilities (loans, financial assets at fair value through equity and debt securities in issue).

The term financial instruments comprise interest rate, currency and forward exchange swaps.

Following the application of IFRS 13 "Fair value measurement", the CEB adjusted its valuation methods related to:

· the
 counterparty's credit risk within the fair value of derivative financial assets (Credit Valuation
 Adjustment – CVA),

· own credit risk within the valuation of derivative financial liabilities
 (Debit Valuation Adjustment – DVA), and

· own credit risk within the valuation of debt securities in issue (Own
 Credit Adjustment – OCA).

As at 31 December 2025, the CEB recorded a fair value adjustment of derivative instruments in the amount of €130 thousand under assets for the DVA (31 December 2024: €147 thousand) and of €1 683 thousand under liabilities for the CVA (31 December 2024: €1 832 thousand). These adjustments are recorded by the counterparty in the Income statement.

The OCA is an adjustment to be made to debt instruments issued which are designated at fair value in order to reflect CEB's risk of default. Since the debt securities issued by the CEB are all designated at amortised cost, the revaluation of OCA is not accounted for.

The following table presents the fair value of the financial instruments at fair value through profit or loss and the hedging derivative financial instruments:

---

| | | |
|:---|:---|:---|
| <br>&nbsp;&nbsp;&nbsp;**31 December 2025** | <br>**Positive<br> market <br> value** | € thousand<br>**Negative <br> market <br> value** |
| &nbsp;&nbsp;&nbsp;Financial instruments at fair value through profit or loss |  |  |
| &nbsp;&nbsp;&nbsp;Interest rate derivative financial instruments | 7 969 | (24 506) |
| &nbsp;&nbsp;&nbsp;Foreign exchange derivative financial instruments | 80 077 | (886 477) |
| &nbsp;&nbsp;&nbsp;Value adjustment for own credit risk (Debit Valuation Adjustment - DVA) | 130 |  |
| &nbsp;&nbsp;&nbsp;Value adjustment for the risk of the counterparty (Credit Valuation Adjustment - CVA) |  | (1 683) |
| &nbsp;&nbsp;&nbsp;**Total** | **88 176** | **(912 666)** |
| &nbsp;&nbsp;&nbsp;Hedging derivative financial instruments |  |  |
| &nbsp;&nbsp;&nbsp;Interest rate derivative financial instruments | 1 272 029 | (862 504) |
| &nbsp;&nbsp;&nbsp;Foreign exchange derivative financial instruments | 325 473 | (158 808) |
| &nbsp;&nbsp;&nbsp;**Total** | **1 597 502** | **(1 021 312)** |

---

---

| | | |
|:---|:---|:---|
| <br>&nbsp;&nbsp;&nbsp;**31 December 2024** | <br>**Positive<br> market <br> value** | € thousand<br>**Negative <br> market <br> value** |
| &nbsp;&nbsp;&nbsp;Financial instruments at fair value through profit or loss |  |  |
| &nbsp;&nbsp;&nbsp;Interest rate derivative financial instruments | 7 307 | (16 702) |
| &nbsp;&nbsp;&nbsp;Foreign exchange derivative financial instruments | 581 832 | (252 317) |
| &nbsp;&nbsp;&nbsp;Value adjustment for own credit risk (Debit Valuation Adjustment - DVA) | 147 |  |
| &nbsp;&nbsp;&nbsp;Value adjustment for the risk of the counterparty (Credit Valuation Adjustment - CVA) |  | (1 832) |
| &nbsp;&nbsp;&nbsp;**Total** | **589 286** | **(270 851)** |
| &nbsp;&nbsp;&nbsp;Hedging derivative financial instruments |  |  |
| &nbsp;&nbsp;&nbsp;Interest rate derivative financial instruments | 1 266 483 | (1 124 896) |
| &nbsp;&nbsp;&nbsp;Foreign exchange derivative financial instruments | 240 999 | (321 436) |
| &nbsp;&nbsp;&nbsp;**Total** | **1 507 482** | **(1 446 332)** |

---

FINANCIAL STATEMENTS 2025

**NOTE D - Financial assets and liabilities**

The table below shows the net book value of financial assets and liabilities according to the accounting valuation rule as well as their fair value:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| <br>**31 December 2025** | <br>**At fair<br> value <br> through <br> profit or <br> loss** | <br>**At fair <br> value <br> through recyclable <br> equity** | <br>**At fair value<br> through non-<br> recyclable <br> equity** | <br>**At <br> amortised <br> cost** | <br>**Net <br> book <br> value** | € thousand<br>**Fair <br> value** |
| Assets |  |  |  |  |  |  |
| Cash in hand, balances with central banks |  |  |  | 504 820 | 504 820 | 504 820 |
| Financial instruments at fair value through profit or loss | 88 176 |  |  |  | 88 176 | 88 176 |
| Hedging derivative financial instruments | 1 597 502 |  |  |  | 1 597 502 | 1 597 502 |
| Financial assets at fair value through equity |  | 2 989 136 | 1 350 |  | 2 990 486 | 2 990 486 |
| Financial assets at amortised cost |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Loans and advances |  |  |  | 29 864 655 | 29 864 655 | 29 864 655 |
| &nbsp;&nbsp;&nbsp;Debt securities |  |  |  | 2 926 544 | 2 926 544 | 2 939 869 |
| **Total financial assets** | **1 685 678** | **2 989 136** | **1 350** | **33 296 019** | **37 972 183** | **37 985 508** |
| **Liabilities** |  |  |  |  |  |  |
| Financial instruments at fair value through profit or loss | 912 666 |  |  |  | 912 666 | 912 666 |
| Hedging derivative financial instruments | 1 021 312 |  |  |  | 1 021 312 | 1 021 312 |
| Financial liabilities at amortised cost |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Amounts owed to credit institutions and to customers |  |  |  | 63 108 | 63 108 | 63 108 |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt securities in issue |  |  |  | 31 370 852 | 31 370 852 | 31 963 912 |
| Social Impact Account |  |  |  | 56 891 | 56 891 | 56 891 |
| **Total financial liabilities** | **1 933 978** |  |  | **31 490 851** | **33 424 829** | **34 017 889** |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| <br>**31 December 2024** | <br>**At fair<br> value <br> through <br> profit or <br> loss** | <br>**At fair <br> value <br> through recyclable <br> equity** | <br>**At fair value<br> through non-<br> recyclable <br> equity** | <br>**At <br> amortised <br> cost** | <br>**Net <br> book <br> value** | € thousand<br>**Fair <br> value** |
| Assets |  |  |  |  |  |  |
| Cash in hand, balances with central banks |  |  |  | 608 615 | 608 615 | 608 615 |
| Financial instruments at fair value through profit or loss | 589 286 |  |  |  | 589 286 | 589 286 |
| Hedging derivative financial instruments | 1 507 482 |  |  |  | 1 507 482 | 1 507 482 |
| Financial assets at fair value through equity |  | 3 289 977 | 1 347 |  | 3 291 324 | 3 291 324 |
| Financial assets at amortised cost |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans and advances |  |  |  | 29 174 418 | 29 174 418 | 29 174 418 |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt securities |  |  |  | 2 338 292 | 2 338 292 | 2 415 527 |
| **Total financial assets** | **2 096 768** | **3 289 977** | **1 347** | **32 121 325** | **37 509 417** | **37 586 652** |
| Liabilities |  |  |  |  |  |  |
| Financial instruments at fair value through profit or loss | 270 851 |  |  |  | 270 851 | 270 851 |
| Hedging derivative financial instruments | 1 446 332 |  |  |  | 1 446 332 | 1 446 332 |
| Financial liabilities at amortised cost |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Amounts owed to credit institutions and to customers |  |  |  | 98 251 | 98 251 | 98 251 |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt securities in issue |  |  |  | 30 873 212 | 30 873 212 | 31 802 368 |
| Social Impact Account |  |  |  | 50 144 | 50 144 | 50 144 |
| **Total financial liabilities** | **1 717 183** |  |  | **31 021 607** | **32 738 790** | **33 667 946** |

---

None of the securities classified under financial assets at fair value through equity or debt securities at amortised cost categories has been pledged in 2025 and 2024.

FINANCIAL STATEMENTS 2025

**NOTE E - Market value measurement of financial instruments**

Following the application of IFRS 13 "Fair value measurement", the CEB adjusted the fair value measurement framework of its financial instruments by including its counterparty risk (CVA) and its own credit risk (DVA and OCA), as mentioned in Note C.

The Bank groups its financial assets and liabilities in a three-level hierarchy reflecting the reliability of the fair value measurement.

To determine their fair value level, the CEB uses the fair value level provided by an external data provider, which is based on the set of rules described below:

Level 1: liquid assets and liabilities as well as financial instruments with quoted price in active markets,

Level 2: financial instruments whose market value is measured using valuation techniques based on observable parameters. The level 2 inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the financial instrument (interest rates and yield curves observable and credit spreads),

Level 3: financial instruments whose market value is measured using valuation techniques that include unobservable parameters. This level includes loans whose conditions for disbursements are equivalent to those applied by other supranational financial institutions. Given its preferred creditor status, the Bank does not sell this type of receivables. Furthermore, changes in market rates have very little impact on the fair value of these operations as the majority of loans are at variable interest rate (including hedging transactions). The Bank therefore estimates that the fair value of these assets corresponds to their net book value.

Financial instruments measured at their fair values are presented in the table below:

---

| | | | | |
|:---|:---|:---|:---|:---|
| <br>&nbsp;&nbsp;**31 December 2025** | <br>**Level 1** | <br>**Level 2** | <br>**Level 3** | € thousand<br>**Total** |
| &nbsp;&nbsp;Assets |  |  |  |  |
| &nbsp;&nbsp;Cash in hand, balances with central banks | 504 820 |  |  | 504 820 |
| &nbsp;&nbsp;Financial instruments at fair value through profit or loss |  | 87 898 | 278 | 88 176 |
| &nbsp;&nbsp;Hedging derivative financial instruments |  | 1 597 502 |  | 1 597 502 |
| &nbsp;&nbsp;Financial assets at fair value through equity | 1 544 325 | 1 446 161 |  | 2 990 486 |
| &nbsp;&nbsp;Financial assets at amortised cost |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans and advances |  |  | 29 864 655 | 29 864 655 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Debt securities | 2 661 088 | 278 781 |  | 2 939 869 |
| &nbsp;&nbsp;**Total financial assets** | **4 710 233** | **3 410 342** | **29 864 933** | **37 985 508** |
| &nbsp;&nbsp;Liabilities |  |  |  |  |
| &nbsp;&nbsp;Financial instruments at fair value through profit or loss |  | 912 637 | 29 | 912 666 |
| &nbsp;&nbsp;Hedging derivative financial instruments |  | 1 021 312 |  | 1 021 312 |
| &nbsp;&nbsp;Financial liabilities at amortised cost |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amounts owed to credit institutions and to customers | 63 108 |  |  | 63 108 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Debt securities in issue | 28 428 246 | 3 525 534 | 10 132 | 31 963 912 |
| &nbsp;&nbsp;Social Impact Account | 56 891 |  |  | 56 891 |
| &nbsp;&nbsp;**Total financial liabilities** | **28 548 245** | **5 459 483** | **10 161** | 34 017 889 |
|  |  |  |  | € thousand |
| &nbsp;&nbsp;**31 December 2024** | **Level 1** | **Level 2** | **Level 3** | **Total** |
| &nbsp;&nbsp;Assets |  |  |  |  |
| &nbsp;&nbsp;Cash in hand, balances with central banks | 608 615 |  |  | 608 615 |
| &nbsp;&nbsp;Financial instruments at fair value through profit or loss |  | 589 286 |  | 589 286 |
| &nbsp;&nbsp;Hedging derivative financial instruments |  | 1 507 482 |  | 1 507 482 |
| &nbsp;&nbsp;Financial assets at fair value through equity | 1 656 122 | 1 635 202 |  | 3 291 324 |
| &nbsp;&nbsp;Financial assets at amortised cost |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans and advances |  |  | 29 174 418 | 29 174 418 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Debt securities | 2 172 150 | 243 377 |  | 2 415 527 |
| &nbsp;&nbsp;**Total financial assets** | **4 436 887** | **3 975 347** | **29 174 418** | 37 586 652 |
| &nbsp;&nbsp;Liabilities |  |  |  |  |
| &nbsp;&nbsp;Financial instruments at fair value through profit or loss |  | 270 851 |  | 270 851 |
| &nbsp;&nbsp;Hedging derivative financial instruments |  | 1 446 332 |  | 1 446 332 |
| &nbsp;&nbsp;Financial liabilities at amortised cost |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amounts owed to credit institutions and to customers | 98 251 |  |  | 98 251 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Debt securities in issue | 29 052 403 | 2 749 965 |  | 31 802 368 |
| &nbsp;&nbsp;Social Impact Account | 50 144 |  |  | 50 144 |
| &nbsp;&nbsp;**Total financial liabilities** | **29 200 798** | **4 467 148** |  | **33 667 946** |

---

FINANCIAL STATEMENTS 2025

As at 31 December 2025, the CEB recorded the following fair value hierarchy transfers, based on the hierarchy provided by an external data provider and in accordance with the rules described above:

· On
 the liability side, €0.9 billion of debt securities were transferred from Level 2 to
 Level 1 and the CMS spread issuance note of €10.1 million was reclassified from Level
 2 to Level 3, as its valuation incorporates significant unobservable inputs, mainly interest
 rate volatility and correlation.

· On
 the asset side, €158.8 million of debt securities measured at fair value through equity
 were transferred from Level 1 to Level 2. In addition, €40.8 million of debt securities
 measured at amortised cost were transferred from Level 1 to Level 2.

· The
 CMS spread issuance swap of €0.2 million was reclassified from Level 2 to Level 3 as
 its valuation incorporates significant unobservable inputs, mainly interest rate volatility
 and correlation.

**NOTE F - Offsetting financial assets and financial liabilities**

As at 31 December 2025, no operation was subject to offsetting in the Balance sheet of the CEB. The Bank has no offsetting agreements meeting the criteria of the amendment to IAS 32.

The following table presents net amounts of financial assets and liabilities, as well as their net amounts after considering transactions under framework agreements (cash deposits or securities received under collateral agreements on swaps and loans), as required by the amendment to IFRS 7:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Net amounts** | **Cash** | | |
| | **of financial** | **given** **/** | | |
| | **assets and** | **received** | | |
| <br>**31 December 2025** | **liabilities** | **as collateral** | <br>**Securities**<br>**received as**<br>**collateral** | € thousand<br>**Net**<br>**amounts** |
| Assets |  |  |  |  |
| Loans at amortised cost | 22 771 841 |  | (105 235) | 22 666 606 |
| Derivative financial instruments | 1 685 678 | (404 470) |  | 1 281 208 |
| Deposits of guarantees given | 686 576 | (685 790) |  | 786 |
| Other assets not subject to offsetting | 13 894 203 |  |  | 13 894 203 |
| **Total assets** | **39 038 298** | **(1 090 260)** | **(105 235)** | **37 842 803** |
| Liabilities |  |  |  |  |
| Derivative financial instruments | 1 933 978 | (685 790) |  | 1 248 188 |
| Deposits of guarantees received | 405 112 | (404 470) |  | 642 |
| Other liabilities not subject to offsetting | 31 824 960 |  |  | 31 824 960 |
| **Total liabilities** | **34 164 050** | **(1 090 260)** |  | **33 073 790** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| <br>**31 December 2024** | <br>**Net amounts<br> of financial <br> assets and<br> liabilities** | <br>**Cash <br> given / <br> received <br> as collateral** | <br>**Securities <br> received as <br> collateral** | € thousand<br>**Net <br> amounts** |
| Assets |  |  |  |  |
| Loans at amortised cost | 22 301 631 |  | (143 065) | 22 158 566 |
| Derivative financial instruments | 2 096 768 | (788 460) |  | 1 308 308 |
| Deposits of guarantees given | 441 820 | (441 020) |  | 800 |
| Other assets not subject to offsetting | 13 773 066 |  |  | 13 773 066 |
| **Total assets** | **38 613 285** | **(1 229 480)** | **(143 065)** | **37 240 740** |
| Liabilities |  |  |  |  |
| Derivative financial instruments | 1 717 183 | (441 020) |  | 1 276 163 |
| Deposits of guarantees received | 790 434 | (788 460) |  | 1 974 |
| Other liabilities not subject to offsetting | 31 386 236 |  |  | 31 386 236 |
| **Total liabilities** | **33 893 853** | **(1 229 480)** |  | **32 664 373** |

---

FINANCIAL STATEMENTS 2025

**NOTE G - Financial assets at fair value through equity and at amortised cost**

**Financial assets at fair value through equity**

---

| | | |
|:---|:---|:---|
| | <br>**31/12/2025** | € thousand<br>**31/12/2024** |
| Debt securities |  |  |
| Gross book value | 3 053 785 | 3 368 302 |
| Unrealised gains or losses | (63 877) | (76 509) |
| Impairment | (772) | (1 816) |
| Net book value | 2 989 136 | 3 289 977 |
| Equity instruments |  |  |
| Gross book value | 1 380 | 1 380 |
| Unrealised gains or losses | (28) | (28) |
| Impairment | (2) | (5) |
| Net book value | 1 350 | 1 347 |
| **Total** | **2 990 486** | **3 291 324** |

---

**Financial assets at amortised cost**

---

| | | |
|:---|:---|:---|
| | <br>**31/12/2025** | € thousand<br>**31/12/2024** |
| Loans to credit institutions |  |  |
| Gross book value | 6 527 736 | 7 323 463 |
| Impairment | (3 319) | (5 210) |
| Net book value | 6 524 417 | 7 318 253 |
| Loans to customers |  |  |
| Gross book value | 17 141 233 | 15 692 256 |
| Impairment | (12 475) | (14 479) |
| Net book value | 17 128 758 | 15 677 777 |
| Value adjustment to loans hedged by derivative instruments | (881 334) | (694 399) |
| **Total loans** | **22 771 841** | **22 301 631** |
| Advances |  |  |
| Advances repayable on demand - gross book value | 5 452 | 6 540 |
| Impairment | (3) | (6) |
| Net book value | 5 449 | 6 534 |
| Advances with agreed maturity dates or periods of notice - gross book value | 7 089 197 | 6 860 310 |
| Impairment | (1 089) | (1 738) |
| Net book value | 7 088 108 | 6 858 572 |
| Value adjustment to advances hedged by derivative instruments | (743) | 7 681 |
| **Total advances** | **7 092 814** | **6 872 787** |
| Debt securities |  |  |
| Gross book value | 2 927 224 | 2 338 986 |
| Impairment | (680) | (694) |
| Net book value | 2 926 544 | 2 338 292 |
| **Total debt securities** | **2 926 544** | **2 338 292** |

---

As at 31 December 2025, loans are guaranteed up to the amount of €6.8 billion (31 December 2024: €7.5 billion). These guarantees could be either in the form of securities or signed commitments.

FINANCIAL STATEMENTS 2025

**Financial assets at amortised cost by stage**

€ thousand

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **31/12/2025** | **31/12/2025** | **31/12/2025** | **31/12/2024** | **31/12/2024** | **31/12/2024** |
|  | **Gross book<br> value** | **Impairment** | **Net book<br> value** | **Gross book<br> value** | **Impairment** | **Net book<br> value** |
| Loans to credit institutions | 6 527 736 | (3 319) | 6 524 417 | 7 323 463 | (5 210) | 7 318 253 |
| Stage 1 | 6 527 736 | (3 319) | 6 524 417 | 7 323 463 | (5 210) | 7 318 253 |
| Stage 2 |  |  |  |  |  |  |
| Stage 3 |  |  |  |  |  |  |
| Loans to customers | 17 141 233 | (12 475) | 17 128 758 | 15 692 256 | (14 479) | 15 677 777 |
| Stage 1 | 17 141 233 | (12 475) | 17 128 758 | 15 692 256 | (14 479) | 15 677 777 |
| Stage 2 |  |  |  |  |  |  |
| Stage 3 |  |  |  |  |  |  |
| Advances | 7 094 649 | (1 092) | 7 093 557 | 6 866 850 | (1 744) | 6 865 106 |
| Stage 1 | 7 094 649 | (1 092) | 7 093 557 | 6 866 850 | (1 744) | 6 865 106 |
| Stage 2 |  |  |  |  |  |  |
| Stage 3 |  |  |  |  |  |  |
| Debt securities | 2 927 224 | (680) | 2 926 544 | 2 338 986 | (694) | 2 338 292 |
| Stage 1 | 2 927 224 | (680) | 2 926 544 | 2 338 986 | (694) | 2 338 292 |
| Stage 2 |  |  |  |  |  |  |
| Stage 3 |  |  |  |  |  |  |

---

During the year 2025, no defaults occurred in the Bank's financial assets at amortised cost portfolio.

FINANCIAL STATEMENTS 2025

**LOANS AND** **GUARANTEES**

**Loans**

The Bank's loan portfolio comprises loans granted to borrowing member countries. Loan disbursements are repayable in the currency in which they were disbursed by the Bank. The amount repayable in each currency will be equal to the amount of the currency initially disbursed. The loans are intended to finance investment projects of a social nature and therefore do not serve a commercial purpose. Certain loans and financing commitments which finance highly social projects benefit from interest rate subsidies or guarantees through the Social Impact Account.

**Loans outstanding and financing commitments by country**

The breakdown of outstanding loans and financing commitments by borrower's country location, whether subsidised or not by the Social Impact Account, is presented in the table below:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | | | | | € thousand | € thousand |
| **Breakdown by borrower's country** | **Outstanding** | **Outstanding** | **Outstanding** | **Outstanding** | **Financing commitments** | **Financing commitments** |
| **location** | **31/12/2025** | % | **31/12/2024** | % | **31/12/2025** | **31/12/2024** |
| Spain | 2 546 994 | 10.81 | 2 631 487 | 11.48 | 219 000 | 318 429 |
| Poland | 2 420 824 | 10.27 | 2 267 617 | 9.90 | 188 174 | 368 556 |
| France | 1 892 594 | 8.03 | 1 791 512 | 7.82 | 712 670 | 663 170 |
| Germany | 1 807 378 | 7.67 | 1 596 910 | 6.97 | 365 700 | 560 700 |
| Italy <sup>(a)</sup> | 1 738 276 | 7.38 | 1 699 261 | 7.42 | 641 348 | 386 719 |
| Türkiye | 1 536 582 | 6.52 | 1 435 767 | 6.27 | 605 000 | 478 000 |
| Belgium | 1 211 050 | 5.14 | 962 312 | 4.20 | 339 000 | 565 000 |
| Slovak Republic | 1 012 936 | 4.30 | 1 155 560 | 5.04 | 246 000 | 533 000 |
| Lithuania | 872 428 | 3.70 | 937 239 | 4.09 | 91 500 | 73 000 |
| Serbia | 868 082 | 3.68 | 824 915 | 3.60 | 412 171 | 498 971 |
| Netherlands | 861 992 | 3.66 | 1 031 460 | 4.50 | 150 000 |  |
| Hungary | 767 445 | 3.26 | 725 941 | 3.17 | 125 000 | 25 000 |
| Finland | 691 924 | 2.94 | 734 869 | 3.21 | 65 000 | 50 000 |
| Czech Republic | 624 286 | 2.65 | 684 497 | 2.99 | 226 536 | 239 316 |
| Croatia | 583 301 | 2.48 | 690 626 | 3.01 | 250 000 |  |
| Romania | 562 657 | 2.39 | 552 390 | 2.41 | 680 679 | 483 341 |
| Sweden | 543 353 | 2.31 | 542 177 | 2.37 | 57 285 | 80 000 |
| Ireland | 536 131 | 2.28 | 499 950 | 2.18 | 6 500 | 83 636 |
| Ukraine | 460 172 | 1.95 | 115 801 | 0.51 | 92 828 | 84 199 |
| Bulgaria | 309 487 | 1.31 | 224 271 | 0.98 | 274 000 | 125 000 |
| Cyprus | 267 292 | 1.13 | 283 087 | 1.24 | 84 400 | 68 000 |
| Estonia | 218 667 | 0.93 | 220 000 | 0.96 | 85 000 | 25 000 |
| Greece | 217 833 | 0.92 | 218 167 | 0.95 | 132 500 | 132 500 |
| Slovenia | 189 655 | 0.80 | 194 918 | 0.85 | 15 000 | 25 000 |
| Portugal | 149 399 | 0.63 | 246 176 | 1.07 | 256 700 | 352 700 |
| Iceland | 110 305 | 0.47 | 64 905 | 0.28 | 110 500 | 92 000 |
| Bosnia and Herzegovina | 96 367 | 0.41 | 95 815 | 0.42 | 28 635 | 11 000 |
| Albania | 96 105 | 0.41 | 109 450 | 0.48 | 34 500 |  |
| North Macedonia | 76 254 | 0.32 | 83 977 | 0.37 | 70 700 | 76 600 |
| Montenegro | 75 047 | 0.32 | 81 087 | 0.35 | 93 000 | 8 500 |
| Republic of Moldova | 52 939 | 0.22 | 62 800 | 0.27 | 182 935 | 153 783 |
| Kosovo | 43 826 | 0.19 | 45 442 | 0.20 | 25 000 | 25 000 |
| Latvia | 37 119 | 0.16 | 17 962 | 0.08 | 41 000 | 22 000 |
| Georgia | 32 855 | 0.14 | 34 208 | 0.15 | 4 036 |  |
| Malta | 28 605 | 0.12 | 29 000 | 0.13 |  |  |
| Andorra | 11 953 | 0.05 | 13 087 | 0.06 |  |  |
| San Marino | 6 867 | 0.03 | 7 533 | 0.03 |  |  |
| Luxembourg <sup>(b)</sup> | 2 538 | 0.01 | 2 600 | 0.01 |  | 400 |
| **Total** | **23 561 514** | **100.00** | **22 914 774** | **100.00** | **6 912 298** | **6 608 521** |

---

a) of which €7.5 million outstanding in favour of target countries as at 31 December 2025 (31 December 2024 : €9.0 million)

b) of which €2.5 million outstanding in favour of target countries as at 31 December 2025 (31 December 2024 : €2.6 million)

FINANCIAL STATEMENTS 2025

**Loans outstanding and financing commitments by country, with SIA interest rate subsidies or loan guarantee**

Outstanding loans and financing commitments, with Social Impact Account interest rate subsidies or loan guarantee, are detailed below by borrowers' country location:

€ thousand

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Outstanding** | **Outstanding** | **Financing commitments** | **Financing commitments** |
| **Breakdown by borrowers' country location** | **31/12/2025** | **31/12/2024** | **31/12/2025** | **31/12/2024** |
| Türkiye | 254 333 | 296 000 |  |  |
| Poland | 99 397 | 113 018 |  |  |
| Bosnia and Herzegovina | 89 637 | 87 535 | 9 000 | 2 500 |
| Kosovo | 33 383 | 35 000 |  |  |
| Republic of Moldova | 21 434 | 23 381 |  |  |
| Romania | 21 106 | 27 551 | 3 121 | 4 871 |
| North Macedonia | 16 458 | 17 834 | 700 | 700 |
| Albania | 10 709 | 14 536 | 7 500 |  |
| Croatia | 8 431 | 12 545 |  |  |
| Serbia | 6 090 | 6 136 |  |  |
| Lithuania | 5 050 | 5 800 | 350 |  |
| Montenegro | 5 000 |  | 5 000 |  |
| Georgia | 3 925 | 208 | 4 036 |  |
| Italy | 2 706 | 2 950 | 250 | 800 |
| Luxembourg | 2 538 | 2 600 |  | 400 |
| Ukraine | 1 500 |  | 1 500 |  |
| Bulgaria | 812 | 1 296 | 75 | 125 |
| Ireland | 553 | 360 | 325 | 600 |
| Spain | 350 | 100 | 1 200 | 2 400 |
| Greece | 333 | 667 |  |  |
| Belgium | 50 |  | 700 | 750 |
| **Total** | **583 795** | **647 517** | **33 757** | **13 146** |

---

The interest rate subsidies are presented in Note K.

**Breakdown of loans outstanding and financing commitments by maturity of repayment flows**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | |  | € thousand |
| | **31/12/205** | **31/12/205** | **31/12/2024** | **31/12/2024** |
| <br>**Maturity** | **Loans** | **Financing <br> commitments** | **Loans** | **Financing <br> commitments** |
| Up to 1 month | 114 756 | 199 500 | 55 644 | 310 000 |
| 1 to 3 months | 220 461 | 760 000 | 47 488 | 646 000 |
| 3 months up to 1 year | 2 509 983 | 2 058 500 | 2 230 795 | 1 846 000 |
| 1 to 5 years | 9 325 926 | 3 116 664 | 9 382 716 | 3 063 062 |
| More than 5 years | 11 390 388 | 777 634 | 11 198 131 | 743 459 |
| **Total** | **23 561 514** | **6 912 298** | **22 914 774** | **6 608 521** |

---

**Currency composition of loan portfolio**

92% of loan disbursements are denominated in euro, and 99.9% of loans disbursed in foreign currencies are hedged by a currency swap, which limits the impact of exchange rate risk on the loan portfolio.

---

| | | | | |
|:---|:---|:---|:---|:---|
| <br>**Currency** | <br>**31/12/2025** | <br>**%** | <br>**31/12/2024** | € thousand<br>**%** |
| Euro | 21 721 948 | 92.19% | 20 847 012 | 90.98% |
| Polish Zloty | 637 022 | 2.70% | 784 914 | 3.43% |
| Swedish Krona | 533 177 | 2.26% | 532 386 | 2.32% |
| United States Dollar | 299 509 | 1.27% | 475 862 | 2.08% |
| Hungarian Forint | 251 426 | 1.07% | 157 726 | 0.69% |
| Czech Koruna | 109 932 | 0.47% | 104 066 | 0.45% |
| Swiss Franc | 7 587 | 0.01% | 11 262 | 0.05% |
| Japanese Yen | 913 | 0.01% | 1 546 | 0.01% |
| **Total** | **23 561 514** | **100.00%** | **22 914 774** | **100.00%** |

---

FINANCIAL STATEMENTS 2025

**Reconciliation of impairment provisions by principal loans and financing commitments**

The changes in cumulative impairment provisions for loans and financing commitments are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  |  |  | € thousand |
|  | **2025** | **2025** | **2024** | **2024** |
| | **Loans** | **Financing <br> commitments** | **Loans** | **Financing <br> commitments** |
| **As at 1 January** | **19 689** | **3 251** | **13 676** | **2 241** |
| (Reversal)/Allowance provision on principal of loans | (3 867) | (247) | 5 976 | 1 010 |
| (Reversal)/Allowance provision on interest of loans | (28) |  | 38 |  |
| **As at 31 December** | **15 794** | **3 004** | **19 689** | **3 251** |

---

The impairment provision for loans and financing commitments amounted to €18.8 million as at 31 December 2025 (2024: €22.9 million), representing 86% (2024: 83%) of the total provision established under IFRS 9.

**Guarantees**

The loan portfolio is guaranteed up to €6.1 billion as at 31 December 2025 (31 December 2024: €6.8 billion), of which:

· €43.9 million is covered by the Social Impact Account (31 December 2024: €37.1 million), and

· €132.8 million is covered by the InvestEU guarantee from the European Commission (31 December 2024: €127.8 million).

In addition, in 2025 the Bank entered into guarantee contracts known as Exposure Exchange Agreements (EEA), covering a loan portfolio of €500 million for which it both provides and receives compensation in the event of default on specified loans. The outstanding fair value of financial guarantee contracts (FGC) received and remaining to be amortised amounted to €2.0 million as at 31 December 2025, while the outstanding fair value of financial guarantee contracts (FGC) given and remaining to be amortised amounted to €3.2 million.

The mechanisms and how this type of guarantee operates are described in Note A, section 4.5.

FINANCIAL STATEMENTS 2025

**NOTE H - Tangible and intangible assets**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;**Land and** | | | | |
|  | &nbsp;&nbsp;**Land and** | | | | |
| | &nbsp;&nbsp;**buildings** <sup>(\*)</sup> | &nbsp;&nbsp;<br>&nbsp;&nbsp;<br>&nbsp;&nbsp;**Fixtures** | &nbsp;&nbsp;<br>&nbsp;&nbsp;<br>&nbsp;&nbsp;**Other** | &nbsp;&nbsp;<br>&nbsp;&nbsp;**Intangible**<br>&nbsp;&nbsp;**assets** | &nbsp;&nbsp;€ thousand<br>&nbsp;&nbsp;<br>&nbsp;&nbsp;**Total.** |
| Gross book value |  |  |  |  |  |
| At 1 January 2025 | &nbsp;&nbsp;44 268 | &nbsp;&nbsp;10 390 | &nbsp;&nbsp;8 075 | &nbsp;&nbsp;48 829 | &nbsp;&nbsp;111 562 |
| Additions | &nbsp;&nbsp;11 150 | &nbsp;&nbsp;64 | &nbsp;&nbsp;1 187 | &nbsp;&nbsp;7 293 | &nbsp;&nbsp;19 694 |
| Other movements |  |  | &nbsp;&nbsp;(297) | &nbsp;&nbsp;(26 189) | &nbsp;&nbsp;(26 486) |
| **At 31 December 2025** | &nbsp;&nbsp;**55 418** | &nbsp;&nbsp;**10 454** | &nbsp;&nbsp;**8 965** | &nbsp;&nbsp;**29 933** | &nbsp;&nbsp;**104 770** |
| Depreciation |  |  |  |  |  |
| At 1 January 2025 | &nbsp;&nbsp;(4 567) | &nbsp;&nbsp;(8 353) | &nbsp;&nbsp;(5 208) | &nbsp;&nbsp;(33 636) | &nbsp;&nbsp;(51 764) |
| Charge for the year | &nbsp;&nbsp;(358) | &nbsp;&nbsp;(458) | &nbsp;&nbsp;(1 603) | &nbsp;&nbsp;(5 102) | &nbsp;&nbsp;(7 521) |
| Other movements |  |  | &nbsp;&nbsp;271 | &nbsp;&nbsp;26 126 | &nbsp;&nbsp;26 397 |
| **At 31 December 2025** | &nbsp;&nbsp;**(4 925)** | &nbsp;&nbsp;**(8 811)** | &nbsp;&nbsp;**(6 540)** | &nbsp;&nbsp;**(12 612)** | &nbsp;&nbsp;**(32 888)** |
| Net book value |  |  |  |  |  |
| **At 31 December 2025** | &nbsp;&nbsp;**50 493** | &nbsp;&nbsp;**1 643** | &nbsp;&nbsp;**2 425** | &nbsp;&nbsp;**17 321** | &nbsp;&nbsp;**71 882** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;**Land and** | | | | |
|  | &nbsp;&nbsp;**Land and** | | | | |
|  | &nbsp;&nbsp;**buildings** <sup>(\*)</sup> | <br>&nbsp;&nbsp;**Fixtures** | <br>&nbsp;&nbsp;**Other** | <br>&nbsp;&nbsp;**Intangible**<br>&nbsp;&nbsp;**assets** | &nbsp;&nbsp;€ thousand<br>&nbsp;&nbsp;**Total.** |
| &nbsp;&nbsp;Gross book value |  |  |  |  |  |
| &nbsp;&nbsp;At 1 January 2024 | &nbsp;&nbsp;39 488 | &nbsp;&nbsp;15 668 | &nbsp;&nbsp;9 073 | &nbsp;&nbsp;42 362 | &nbsp;&nbsp;106 591 |
| &nbsp;&nbsp;Additions | &nbsp;&nbsp;881 | &nbsp;&nbsp;267 | &nbsp;&nbsp;2 585 | &nbsp;&nbsp;6 901 | &nbsp;&nbsp;10 634 |
| &nbsp;&nbsp;Other movements | &nbsp;&nbsp;3 899 | &nbsp;&nbsp;(5 545) | &nbsp;&nbsp;(3 583) | &nbsp;&nbsp;(434) | &nbsp;&nbsp;(5 663) |
| &nbsp;&nbsp;**At 31 December 2024** | &nbsp;&nbsp;**44 268** | &nbsp;&nbsp;**10 390** | &nbsp;&nbsp;**8 075** | &nbsp;&nbsp;**48 829** | &nbsp;&nbsp;**111 562** |
| &nbsp;&nbsp;Depreciation |  |  |  |  |  |
| &nbsp;&nbsp;At 1 January 2024 | &nbsp;&nbsp;(381) | &nbsp;&nbsp;(13 130) | &nbsp;&nbsp;(7 405) | &nbsp;&nbsp;(28 833) | &nbsp;&nbsp;(49 749) |
| &nbsp;&nbsp;Charge for the year | &nbsp;&nbsp;(312) | &nbsp;&nbsp;(583) | &nbsp;&nbsp;(1 328) | &nbsp;&nbsp;(4 803) | &nbsp;&nbsp;(7 026) |
| &nbsp;&nbsp;Other movements | &nbsp;&nbsp;(3 874) | &nbsp;&nbsp;5 360 | &nbsp;&nbsp;3 525 |  | &nbsp;&nbsp;5 011 |
| &nbsp;&nbsp;**At 31 December 2024** | &nbsp;&nbsp;**(4 567)** | &nbsp;&nbsp;**(8 353)** | &nbsp;&nbsp;**(5 208)** | &nbsp;&nbsp;**(33 636)** | &nbsp;&nbsp;**(51 764)** |
| &nbsp;&nbsp;Net book value |  |  |  |  |  |
| &nbsp;&nbsp;**At 31 December 2024** | &nbsp;&nbsp;**39 701** | &nbsp;&nbsp;**2 037** | &nbsp;&nbsp;**2 867** | &nbsp;&nbsp;**15 193** | &nbsp;&nbsp;**59 798** |

---

<sup>(\*)</sup> "Land and buildings" represent the Bank's headquarters located at 55 avenue Kléber in Paris. In accordance with IFRS 16, a lease contract is also included in this item. The gross value of the right-of-use amounts to €2.8 million as at 31 December 2025 and the amortisation to -€1.0 million (31 December 2024: €2.8 million and -€686 thousand respectively).

**NOTE I - Other assets and other liabilities**

---

| | | |
|:---|:---|:---|
|  | <br>**31/12/2025** | € thousand<br>**31/12/2024** |
| Other assets |  |  |
| Deposits of guarantees given *<sup>(a)</sup>* | 686 576 | 441 820 |
| Sundry debtors | 4 170 | 3 174 |
| Subscribed, called and unpaid capital and reserves to be received | 300 455 | 591 048 |
| Prepaid expenses | 2 893 | 3 512 |
| Sundry assets | 139 | 4 516 |
| **Total** | **994 233** | **1 044 070** |
| Other liabilities |  |  |
| Deposits of guarantees received *<sup>(a)</sup>* | 405 112 | 790 434 |
| Sundry creditors *<sup>(b)</sup>* | 12 661 | 12 847 |
| Sundry liabilities | 8 296 | 15 505 |
| **Total** | **426 069** | **818 786** |

---

*<sup>(a)</sup>* The Bank receives and gives guarantees in the form of deposits or securities in relation to collateralisation contracts. As at 31 December 2025, the CEB:

● paid €686.6 million of guarantees in the form of deposits (31 December 2024: €441.8 million) and

● received €405.1 million of guarantees in the form of deposits (31 December 2024: €790.4 million) and €105.2 million in the form of securities (31 December 2024: €143.1 million).

*<sup>(b)</sup>* Of which €2.8 million of lease liability representing the gross value of the lease payments and -€0.9 million of liability amortisation, in accordance with IFRS 16 (31 December 2024: €2.8 million for the lease liability and -€634 thousand for the liability amortisation).

FINANCIAL STATEMENTS 2025

**NOTE J - Financial liabilities at amortised cost**

---

| | | |
|:---|:---|:---|
|  | <br>**31/12/2025** | € thousand<br>**31/12/2024** |
| Amounts owed to credit institutions and to customers |  |  |
| Interest-bearing accounts | 63 097 | 98 251 |
| Interest payable | 11 |  |
| **Total** | **63 108** | **98 251** |
| Debt securities in issue at amortised cost |  |  |
| Bonds | 31 605 076 | 31 411 595 |
| Interest payable | 359 549 | 285 906 |
| Value adjustment to debt securities in issue hedged by derivative instruments | (593 773) | (824 289) |
| **Total** | **31 370 852** | **30 873 212** |

---

**Development of customers' interest-bearing accounts**

Within the framework of numerous bilateral and multilateral contribution agreements signed with donors, the CEB receives contributions in order to support, through grants and loan guarantees, activities in line with its objectives. The contributions received from donors are deposited on accounts opened in the CEB's books.

Most of the contributions are provided by member states of the CEB, the EU and allocations from the Bank's annual profits.

The Bank fulfils the role of account manager. As such, it processes and records the movements affecting the accounts and controls the available balances. Within the framework of these activities, the CEB may receive management fees.

The CEB is not exposed to credit risk on these accounts since it does not commit to providing grants to beneficiaries without having first received a contribution commitment from one or more donors.

As at 31 December 2025, the Bank managed 20 trust funds (2024: 31) with a total balance of €63.1 million (2024: €98.3 million). The resources on these accounts amount to €275.8 million (2024: €508.6 million) while disbursements stand at €212.7 million (2024: €410.3 million).

The table below provides a summary of the movements and commitments on the accounts administered by the CEB, distributed according to two categories:

● Programmes/Accounts funded by donor countries,

● Programmes/Accounts funded entirely or mainly by the European
Union.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  |  |  |  | € thousand |
|  | **Resources**<sup>(a)</sup> | **Disbursements**<sup>(b)</sup> | **31/12/2025** | **Commitments to be<br> received**<sup>(c)</sup> | **Commitments to<br> be paid**<sup>(c)</sup> |
| &nbsp;&nbsp;Programmess/Accounts funded by donor countries | 74 163 | (47 762) | 26 401 |  | (4 772) |
| &nbsp;&nbsp;Programmes/Accounts funded entirely or mainly by the European Union | 201 642 | (164 935) | 36 707 | 115 221 | (133 357) |
| &nbsp;&nbsp;**Total** | **275 805** | **(212 697)** | **63 108** | **115 221** | **(138 129)** |
|  |  |  |  |  | € thousand |
|  | **Resources**<sup>(a)</sup> | **Disbursements**<sup>(b)</sup> | **31/12/2024** | **Commitments to be<br> received**<sup>(c)</sup> | **Commitments to <br> be paid**<sup>(c)</sup> |
| &nbsp;&nbsp;Programmess/Accounts funded by donor countries | 67 159 | (44 989) | 22 170 |  | (2 436) |
| &nbsp;&nbsp;Programmes/Accounts funded entirely or mainly by the European Union | 441 402 | (365 321) | 76 081 | 122 538 | (120 580) |
| &nbsp;&nbsp;**Total** | **508 561** | **(410 310)** | **98 251** | **122 538** | **(123 016)** |

---

*<sup>(a)</sup>* Consists of contributions received from donors and accrued interest.

*<sup>(b)</sup>* Consists of grants disbursed to projects, fees and funds returned to donors.

*<sup>(c)</sup>* The commitments to be received and to be paid refer to on-going projects only.

FINANCIAL STATEMENTS 2025

The table below presents the detail of the interest-bearing accounts distributed according to the two following categories:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| <br>**Programme/Account** | <br>**Donor(s)** | <br>**Opening<br> year** | <br>**Resources** | <br>**Disbursements** | <br>**31/12/2025** | € thousand<br>**31/12/2024** |
| **Programmes/Accounts funded by donor countries** | **Programmes/Accounts funded by donor countries** | **Programmes/Accounts funded by donor countries** |  |  |  |  |
| Migrant and Refugee Fund | Albania, Bosnia and Herzegovina, Bulgaria, Cyprus, Czech Republic, France, Germany, Holy See, Hungary, Iceland, Ireland, Italy, Liechtenstein, Lithuania, Luxembourg, Malta, Norway, Poland, San Marino, Slovak Republic, Spain, Sweden, EIB, CEB | 2015 | 38 984 | (37 560) | 1 424 | 1 450 |
| Ukraine Solidarity Fund | Czech Republic, Germany, Ireland, Lithuania, Poland, CEB | 2022 | 17 112 | (1 625) | 15 487 | 9 446 |
| Green Social Investment Fund | CEB, Czech Republic | 2020 | 5 532 | (578) | 4 954 | 5 428 |
| Slovak Inclusive Growth Account | Slovak Republic | 2016 | 4 145 | (2 822) | 1 323 | 1 636 |
| Spanish Social Cohesion Account | Spain | 2009 | 4 136 | (3 344) | 792 | 930 |
| Disaster Prevention and Recovery Fund | CEB | 2023 | 3 230 | (1 020) | 2 210 | 3 053 |
| Italian Fund for Innovative Projects | Italy | 2017 | 1 024 | (813) | 211 | 227 |
| **Sub-total Programmes/Accounts funded by donor countries** | **Sub-total Programmes/Accounts funded by donor countries** | **Sub-total Programmes/Accounts funded by donor countries** | **74 163** | **(47 762)** | **26 401** | **22 170** |
| **Programmes/Accounts funded entirely or mainly by the European Union** | **Programmes/Accounts funded entirely or mainly by the European Union** |  |  |  |  |  |
| Accounts linked to the Regional Housing Programme (RHP) | Accounts linked to the Regional Housing Programme (RHP) |  |  |  |  |  |
| RHP Fund Regional Account | &nbsp;&nbsp;European Union, Türkiye, United States of America | 2012 | 47 447 | (47 447) |  | 1 738 |
| Special Account RHP Czech Republic | &nbsp;&nbsp;Czech Republic | 2013 | 84 | (39) | 45 | 44 |
| Special Account RHP Hungary | &nbsp;&nbsp;Hungary | 2014 | 30 | (15) | 15 | 20 |
| Eastern Europe Energy Efficiency and Environment Partnership (E5P) | Eastern Europe Energy Efficiency and Environment Partnership (E5P) |  |  |  |  |  |
| Reconstruction - rehabilitation of public schools and increasing energy efficiency in Tbilisi, Georgia | &nbsp;&nbsp;European Union, Other Donors | 2016 | 2 500 | (2 500) |  |  |
| Facility for Refugees in Türkiye (FRIT) |  |  |  |  |  |  |
| Strengthening health infrastructures for all | &nbsp;&nbsp;European Union | 2020 | 106 611 | (78 702) | 27 909 | 60 195 |
| Western Balkans Investment Framework (WBIF) |  |  |  |  |  |  |
| WBIF: Serbia, University Children's Hospital Tirsova 2 in Belgrade | &nbsp;&nbsp;European Union | 2022 | 21 158 | (20 912) | 246 | 10 147 |
| WBIF: North Macedonia, Rehabilitation of Physical Education Facilities in Primary and Secondary Schools | &nbsp;&nbsp;European Union, Other Donors | 2020 | 3 094 | (2 469) | 625 | 613 |
| WBIF: vulnerable persons living in collective accomodation in Bosnia and Herzegovina | &nbsp;&nbsp;European Union, Other Donors | 2020 | 627 | (608) | 19 | 43 |
| Programme Asylum, Migration and Integration |  |  |  |  |  |  |
| Partnerships and Financing for Migrant Inclusion | &nbsp;&nbsp;European Union | 2021 | 3 543 | (3 443) | 100 | 245 |
| Facility for Roma populations |  |  |  |  |  |  |
| Housing & Empowerment of Roma (HERO) | &nbsp;&nbsp;European Union | 2021 | 2 850 | (2 514) | 336 | 120 |
| InvestEU Programme |  |  |  |  |  |  |
| InvestEU Advisory Hub | &nbsp;&nbsp;European Union | 2023 | 6 432 | (3 948) | 2 484 | 1 765 |
| IEU ESF+ Invest EU Blending Facility for Microfinance | &nbsp;&nbsp;European Union | 2025 | 6 011 | (2 257) | 3 754 |  |
| Neighbourhood Investment Platform (NIP) |  |  |  |  |  |  |
| Technical Assistance for Balti Regional Hospital, Republic of Moldova | &nbsp;&nbsp;European Union | 2024 | 1 255 | (81) | 1 174 | 1 151 |
| **Sub-total Programmes/Accounts funded entirely or mainly by the European Union** | **Sub-total Programmes/Accounts funded entirely or mainly by the European Union** |  | **201 642** | **(164 935)** | **36 707** | **76 081** |
| **Total Interest-bearing accounts** |  |  | **275 805** | **(212 697)** | **63 108** | **98 251** |

---

FINANCIAL STATEMENTS 2025

**Debt Securities in issue**

As at 31 December 2025, the outstanding nominal amount of debt Securities in issue was €31.6 billion (31 December 2024: €31.4 billion). It consists exclusively of long-term bonds, the majority of which are issued in euro (62.3%).

The table below shows the breakdown of the bond borrowing portfolio by currency.

---

| | | | | |
|:---|:---|:---|:---|:---|
| <br>&nbsp;&nbsp;**Currency** | <br>&nbsp;&nbsp;**31/12/2025** | <br>&nbsp;&nbsp;**%** | <br>&nbsp;&nbsp;**31/12/2024** | &nbsp;&nbsp;€ thousand<br>&nbsp;&nbsp;**%** |
| &nbsp;&nbsp;Euro | &nbsp;&nbsp;19 700 000 | &nbsp;&nbsp;62.33% | &nbsp;&nbsp;19 118 732 | &nbsp;&nbsp;60.87% |
| &nbsp;&nbsp;United States Dollar | &nbsp;&nbsp;6 808 511 | &nbsp;&nbsp;21.54% | &nbsp;&nbsp;7 219 174 | &nbsp;&nbsp;22.98% |
| &nbsp;&nbsp;Pound Sterling | &nbsp;&nbsp;2 463 901 | &nbsp;&nbsp;7.80% | &nbsp;&nbsp;3 352 710 | &nbsp;&nbsp;10.67% |
| &nbsp;&nbsp;Australian Dollar | &nbsp;&nbsp;898 697 | &nbsp;&nbsp;2.84% | &nbsp;&nbsp;614 119 | &nbsp;&nbsp;1.96% |
| &nbsp;&nbsp;Hong Kong Dollar | &nbsp;&nbsp;612 263 | &nbsp;&nbsp;1.94% | &nbsp;&nbsp;340 827 | &nbsp;&nbsp;1.09% |
| &nbsp;&nbsp;Chinese Yuan Renminbi | &nbsp;&nbsp;413 313 | &nbsp;&nbsp;1.31% | &nbsp;&nbsp;26 374 | &nbsp;&nbsp;0.08% |
| &nbsp;&nbsp;Swiss Franc | &nbsp;&nbsp;214 731 | &nbsp;&nbsp;0.68% | &nbsp;&nbsp;212 495 | &nbsp;&nbsp;0.68% |
| &nbsp;&nbsp;Canadian Dollar | &nbsp;&nbsp;186 474 | &nbsp;&nbsp;0.59% | &nbsp;&nbsp;200 696 | &nbsp;&nbsp;0.64% |
| &nbsp;&nbsp;Norwegian Krone | &nbsp;&nbsp;168 876 | &nbsp;&nbsp;0.53% | &nbsp;&nbsp;169 563 | &nbsp;&nbsp;0.54% |
| &nbsp;&nbsp;Swedish Krone | &nbsp;&nbsp;60 066 | &nbsp;&nbsp;0.19% | &nbsp;&nbsp;56 724 | &nbsp;&nbsp;0.18% |
| &nbsp;&nbsp;New Turkish Lira | &nbsp;&nbsp;51 502 | &nbsp;&nbsp;0.16% | &nbsp;&nbsp;70 773 | &nbsp;&nbsp;0.23% |
| &nbsp;&nbsp;New Zealand Dollar | &nbsp;&nbsp;26 742 | &nbsp;&nbsp;0.08% | &nbsp;&nbsp;29 408 | &nbsp;&nbsp;0.09% |
| &nbsp;&nbsp;**Total** | &nbsp;&nbsp;**31 605 076** | &nbsp;&nbsp;**100.00%** | &nbsp;&nbsp;**31 **411 595** | &nbsp;&nbsp;**100.00%** |

---

Issued mainly at fixed rates, the debt securities in issue are almost entirely hedged by interest rate swaps for issues in euro and by currency swaps for issues in foreign currencies.

The contractual maturity schedule of debt represented by securities is as follows:

---

| | | |
|:---|:---|:---|
| <br>**Maturity** | <br>&nbsp;&nbsp;**31/12/2025** | &nbsp;&nbsp; € thousand<br>&nbsp;&nbsp;**31/12/2024** |
| &nbsp;&nbsp;Up to 1 year | &nbsp;&nbsp;5 539 553 | &nbsp;&nbsp;4 590 435 |
| &nbsp;&nbsp;1 to 5 years | &nbsp;&nbsp;18 136 487 | &nbsp;&nbsp;18 839 518 |
| &nbsp;&nbsp;5 to 10 years | &nbsp;&nbsp;7 906 284 | &nbsp;&nbsp;7 947 793 |
| &nbsp;&nbsp;More than 10 years | &nbsp;&nbsp;22 752 | &nbsp;&nbsp;33 849 |
| &nbsp;&nbsp;**Total** | &nbsp;&nbsp;**31 605 076** | &nbsp;&nbsp;**31 411 595** |

---

FINANCIAL STATEMENTS 2025

**NOTE K - Social Impact Account**

The Bank uses the Social Impact Account (SIA) to finance four types of supports:

● interest subsidies

● loan guarantees

● technical assistance

● grants

Supports financed by the SIA are approved by the Administrative Council of the Bank, except technical assistance up to €300 thousand, which is approved by the Governor.

Ceilings vary depending on the support. Technical assistance and grants may not exceed €2.5 million per project, interest subsidies €0.5 million per each €10 million in loan amount, while loan guarantees are capped by a risk limit per loan, a portfolio risk limit and a portfolio leverage limit.

The Administrative Council approved the transfer of €7.0 million from the Bank's 2024 net profit in March 2025.

The resources of the SIA are held in four separate sub-accounts, one for each type of support. At 31 December 2025, the breakdown of these sub-accounts is the following:

---

| | | |
|:---|:---|:---|
| <br>**SIA windows** | <br>**31/12/2025** | € thousand<br>**31/12/2024** |
| Subsidies on loans approved | 5 834 | 7 154 |
| Available for subsidy | 2 676 | 2 494 |
| Interest rate subsidies on loans | 8 510 | 9 648 |
| Guarantees on loans approved | 26 818 | 9 530 |
| Available for guarantees | 17 130 | 27 591 |
| Loan guarantees | 43 948 | 37 121 |
| Approvals for technical assistance | 1 609 | 883 |
| Available for technical assistance | 2 480 | 2 155 |
| Technical assistance | 4 089 | 3 038 |
| Available for grant contributions | 344 | 337 |
| Grant contributions | 344 | 337 |
| **Total** | **56 891** | **50 144** |

---

**Funding**

The SIA may receive contributions from:

● the Bank, which contributes to the SIA through allocations from its annual profits, and

● member states, the Council of Europe and, subject to the prior approval of the Governing Board, non-member states and international organisations.

FINANCIAL STATEMENTS 2025

**NOTE L - Provisions for risks and charges**

Provisions for risks and charges amounted to €313.2 million as at 31 December 2025 (31 December 2024: €336.3 million). They consist of provisions for social commitments and provisions for impairment of financing commitments presented in Note S.

---

| | | |
|:---|:---|:---|
| | <br>**31/12/2025** | € thousand<br>**31/12/2024** |
| Provisions |  |  |
| Provision on social commitments | 310 148 | 333 026 |
| Impairment relating to financing commitments (Note S) | 3 004 | 3 251 |
| **Total** | **313 152** | **336 277** |

---

**Provision on social commitments**

The Bank manages a pension scheme as well as other post-employment benefits, including health care, fiscal adjustment, and termination of service schemes. Provisions for these obligations are calculated using the projected unit credit actuarial valuation method.

The financial situation relating to post-employment benefits is presented below:

---

| | | | |
|:---|:---|:---|:---|
| | <br>**Pension**<br>**scheme** | <br>**Other post-**<br>**employment**<br>**benefits** | € thousand<br>**Total** |
| **Provision as at 1 January 2025** | **288 330** | **44 696** | **333 026** |
| Service cost | 9 721 | 1 512 | 11 233 |
| Interest cost related to discounted commitments | 10 376 | 1 593 | 11 969 |
| Changes in actuarial differences recognised directly in equity | (35 603) | (2 032) | (37 635) |
| Benefits paid | (6 959) | (1 486) | (8 445) |
| **Provision as at 31 December 2025** | **265 865** | **44 283** | **310 148** |
|  |  |  | € thousand |
|  |  | **Other post-** |  |
|  | **Pension** | **employment** |  |
|  | **scheme** | **benefits** | **Total** |
| **Provision as at 1 January 2024** | **260 216** | **40 939** | **301 155** |
| Service cost | 8 714 | 1 889 | 10 603 |
| Interest cost related to discounted commitments | 9 622 | 1 494 | 11 116 |
| Changes in actuarial differences recognised directly in equity | 16 021 | 2 057 | 18 078 |
| Benefits paid | (6 243) | (1 683) | (7 926) |
| **Provision as at 31 December 2024** | **288 330** | **44 696** | **333 026** |

---

**Governance**

The pension scheme is governed by the Advisory Pension Committee (APC), which comprises the Governor, two Administrative Council members appointed on the Governor's proposal, one staff-elected member serving a three-year renewable term, and additional expert members invited by the Governor. The APC advises on pension scheme administration upon the Governor's request.

**Actuarial assumptions**

**Financial assumptions**

---

| | | |
|:---|:---|:---|
| | **2025** | **2024** |
| Discount rate <sup>(\*)</sup> | 4.35% | 3.65% |
| Inflation rate | 2.00% | 2.00% |
| Pensions revaluation rate | 2.00% | 2.00% |
| Salary increase rate | 3.50% | 3.50% |

---

<sup>(\*)</sup> Discount rate is based on long-term AA euro-denominated corporate bond interest rates.

FINANCIAL STATEMENTS 2025

**Demographic assumptions**

· Mortality:
 The ISCLT 2023 mortality tables for men and women, compiled by ISRP and EUROSTAT, are used
 since 2024.

· Disability:
 The EVK 90 table is applied for active staff to estimate disability likelihood.

· Employee
 turnover rates decrease with age, from 6.0% at age 20 to 0.0% at age 50.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Age** | 20 | 25 | 30 | 35 | 40 | 45 | 50 |
| **Turnover rate** | 6.0% | 4.0% | 2.7% | 1.7% | 1.0% | 0.4% | 0.0% |

---

**Sensitivity to actuarial assumptions**

The tables below provide a sensitivity analysis of the Post Employment Benefit Obligation (PBO), Service cost, and Interest cost to discount and inflation rate changes as at 31 December 2025.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Discount rate shock (bp)** | **(100)** | **(25)** | **100** | **25** |
| PBO variation (€ million) | 55.5 | 12.6 | (43.5) | (11.9) |
| Service cost variation (€ million) | 2.3 | 0.5 | (1.7) | (0.5) |
| Interest cost variation (€ million) | (1.0) | (0.2) | 0.6 | 0.2 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Inflation rate shock (bp)** | **(100)** | **(25)** | **100** | **25** |
| PBO variation (€ million) | (45.8) | (12.4) | 57.6 | 13.2 |
| Service cost variation (€ million) | (1.8) | (0.5) | 2.4 | 0.5 |
| Interest cost variation (€ million) | (1.9) | (0.5) | 2.4 | 0.6 |

---

**Duration**

The duration of the PBO was 16.8 years in 2025, slightly down from 18.1 years in 2024.

**Plan assets**

The CEB does not allocate any ring-fenced assets to the scheme. Instead, contributions from both the Bank and its staff are invested as part of the Bank's overall asset portfolio.

FINANCIAL STATEMENTS 2025

**NOTE M - Capital**

**Capital management**

In conformity with its Articles of Agreement (Article III), any European State (member or non-member state of the Council of Europe) and any international institution with a European focus may, upon the conditions established by the Governing Board, become a member of the CEB.

The Bank issues participating certificates denominated in euro to which members subscribe. Each certificate has the same nominal value of €1 000.

The accession procedure for prospective members consists of addressing a declaration to the Secretary General of the Council of Europe stating that the applicant endorses the Bank's Articles of Agreement and subscribes the number of participating certificates fixed in agreement with the Governing Board. Any state becoming a member of the Bank shall confirm in its declaration its intention:

● to accede at the earliest opportunity,
 to the Third Protocol to the General Agreement on Privileges and Immunities of the Council of Europe,

● pending such accession, to apply the
 legal arrangements resulting from the Protocol to the property, assets and operations of the Bank and to grant to the organs and
 staff of the Bank the legal status resulting from the Protocol (Articles of Agreement, Article III).

The Governing Board establishes the provisions for the subscription and paying in of capital as well as provisions regarding any capital increase. The terms and conditions for the potential withdrawal of a member state are defined in the CEB's Articles of Agreement (Article XV). The Bank has never received such kind of request. Based on this and according to IAS 32 as amended in February 2008, the participating certificates are classified as equity instruments.

The subscription to the Bank's capital and reserves shall be calculated on the basis of the contribution rate of the applicant countries to the budget of the Partial Agreement of the Council of Europe on the CEB.

The Bank's subscribed capital is composed of paid-in capital and callable capital. The paid-in capital is the portion of the capital to be paid at the accession to the Bank upon the Governing Board's decision following a proposal by the Administrative Council. Since its inception, the Bank has never withdrawn any subscribed capital.

The Bank's capital adequacy in terms of risks linked to its operations is assessed through a risk appetite framework organised around various ratios (see Chapter 6 in Note B).

FINANCIAL STATEMENTS 2025

**Capital increase**

On 2 December 2022, the Governing Board approved an increase of the Bank's subscribed capital by a maximum of €4.25 billion, of which a maximum of €1.20 billion will be paid-in by the member states. The capital increase became effective at the end of the calendar month in which at least 67% of the participating certificates offered were subscribed. As this threshold was reached in February 2024, the capital increase became effective on 29 February 2024. The subscription period ended on 31 December 2024, with a final subscription rate of 95.15%.

**Capital breakdown by member states**

The capital breakdown by member state as at 31 December 2025 is presented hereinafter.

---

| | | | | |
|:---|:---|:---|:---|:---|
| <br>**Member states** | <br>**Subscribed**<br>**capital** | <br>**Uncalled**<br>**capital** | <br>**Called**<br>**capital** | € thousand<br>**Percentage of**<br>**subscribed capital** |
| France | 1 626363 | 1 324 036 | 302 327 | 16.901% |
| Germany | 1 626363 | 1 324 036 | 302 327 | 16.901% |
| Italy | 1 626363 | 1 324 036 | 302 327 | 16.901% |
| Spain | 1 060700 | 863 525 | 197 175 | 11.023% |
| Türkiye | 689600 | 561 411 | 128 189 | 7.166% |
| Netherlands | 353082 | 287 446 | 65 636 | 3.669% |
| Belgium | 291826 | 237 581 | 54 245 | 3.033% |
| Greece | 291826 | 237 581 | 54 245 | 3.033% |
| Portugal | 247163 | 201 218 | 45 945 | 2.568% |
| Poland | 227784 | 185 441 | 42 343 | 2.367% |
| Denmark | 159244 | 129 640 | 29 604 | 1.655% |
| Sweden | 139172 | 123 724 | 15 448 | 1.446% |
| Norway | 123937 | 100 898 | 23 039 | 1.288% |
| Bulgaria | 110924 | 90 304 | 20 620 | 1.153% |
| Romania | 106404 | 86 625 | 19 779 | 1.106% |
| Ukraine | 101902 | 90 591 | 11 311 | 1.059% |
| Ireland | 85796 | 69 848 | 15 948 | 0.892% |
| Hungary | 79541 | 64 755 | 14 786 | 0.827% |
| Czech Republic | 76432 | 62 224 | 14 208 | 0.794% |
| Finland | 69786 | 62 039 | 7 747 | 0.725% |
| Luxembourg | 61686 | 50 219 | 11 467 | 0.641% |
| Switzerland | 53824 | 43 229 | 10 595 | 0.559% |
| Serbia | 45892 | 37 362 | 8 530 | 0.477% |
| Croatia | 37963 | 30 906 | 7 057 | 0.395% |
| Cyprus | 35309 | 28 746 | 6 563 | 0.367% |
| Slovak Republic | 33670 | 27 411 | 6 259 | 0.350% |
| Albania | 23771 | 19 352 | 4 419 | 0.247% |
| Latvia | 22746 | 18 519 | 4 227 | 0.236% |
| Estonia | 22595 | 18 395 | 4 200 | 0.235% |
| North Macedonia | 22595 | 18 395 | 4 200 | 0.235% |
| Lithuania | 22356 | 18 201 | 4 155 | 0.232% |
| Slovenia | 21835 | 17 776 | 4 059 | 0.227% |
| Iceland | 18015 | 14 666 | 3 349 | 0.187% |
| Malta | 18015 | 14 666 | 3 349 | 0.187% |
| Georgia | 17539 | 14 279 | 3 260 | 0.182% |
| Bosnia and Herzegovina | 17207 | 14 009 | 3 198 | 0.179% |
| Montenegro | 11693 | 9 519 | 2 174 | 0.122% |
| Kosovo | 11648 | 9 483 | 2 165 | 0.121% |
| (Republic of Moldova) | 9746 | 7 934 | 1 812 | 0.101% |
| Andorra | 8747 | 7 121 | 1 626 | 0.091% |
| San Marino | 8644 | 6 916 | 1 728 | 0.090% |
| Liechtenstein | 2921 | 2 374 | 547 | 0.030% |
| Holy See | 243 | 183 | 60 | 0.003% |
| **Total 2025** | **9 622868** | **7 856 618** | **1** **766 250** | **100.000%** |
| **Total 2024** | **9 622868** | **7 856 618** | **1 766 250** |  |

---

The earnings per participating certificate for 2025 amount to €12.70 (2024: €12.92).

FINANCIAL STATEMENTS 2025

**NOTE N - Interest margin**

Income and expenses are accounted for in accordance with the effective interest rate method (interest, commissions and charges).

Interest received and interest paid are grouped by product.

The net amounts received are classified under the item "Interest and similar income" and the net amounts paid are classified under the item "Interest expenses and similar charges", regardless of the classification of the product as an asset or a liability.

These net amounts by product also include the negative interest of the product concerned.

Interest income and expenses of fair value hedging derivatives are presented together with the income and expenses from hedged items.

The Interest margin is detailed below:

---

| | | |
|:---|:---|:---|
|  | **2025** | € thousand<br>**2024** |
| Financial assets at fair value through equity <sup>(\*)</sup> | 82 766 | 83 239 |
| Hedging derivatives | 9 424 | 47 903 |
| Sub-total | 92 190 | 131 142 |
| Loans and advances at amortised cost <sup>(\*)</sup> |  |  |
| &nbsp;&nbsp;&nbsp;- Credit institutions and central banks | 438 303 | 552 860 |
| &nbsp;&nbsp;&nbsp;- Customers | 327 233 | 320 839 |
| Hedging derivatives | 91 280 | 357 165 |
| Sub-total | 856 816 | 1 230 864 |
| Debt securities at amortised cost | 87 200 | 67 300 |
| Sub-total | 87 200 | 67 300 |
| **Interest and similar income** | **1 036 206** | **1 429 306** |
| Amounts owed to credit institutions and to customers | (13 093) | (20 951) |
| Sub-total | (13 093) | (20 951) |
| Debt securities in issue at amortised cost | (761 047) | (639 326) |
| Hedging derivatives | (47 982) | (557 900) |
| Sub-total | (809 029) | (1 197 226) |
| Other interest expenses and similar charges | (11 892) | (11 116) |
| Sub-total | (11 892) | (11 116) |
| **Interest expenses and similar charges** | **(834 014)** | **(1 229 293)** |
| **Interest margin** | **202 192** | **200 013** |
| <sup>(\*)</sup> of which negative interest impact: |  |  |
| <sup>(\*)</sup> of which negative interest impact: |  | € thousand |
| &nbsp;&nbsp;&nbsp;- Financial assets at fair value through equity |  | (174) |
| &nbsp;&nbsp;&nbsp;- Advances at amortised cost | (57) | 327 |
|  | (57) | 153 |

---

FINANCIAL STATEMENTS 2025

**NOTE O - Segment information**

The CEB is a multilateral development bank with a social vocation. It grants loans to finance projects in its member states. This activity is funded by public issues and private placements.

Within this ambit, the Bank holds a single operational field of activity. It intervenes in geographic areas where its contribution is most needed, particularly in Central and Eastern European countries, which constitute the target countries.

Its activity of project financing is conducted exclusively in Europe. However, for other financial operations, in particular its public issues, the CEB operates in Europe as well as in other continents. Therefore, these operations are not shown in the table below.

The interest on loans is broken down by borrowers' country location as follows:

---

| | | |
|:---|:---|:---|
| <br>**Breakdown by borrowers' country location** | **2025** | € thousand<br>**2024** |
| Poland | 81 013 | 93 974 |
| Türkiye | 36 230 | 38 868 |
| Hungary | 20 172 | 21 823 |
| Lithuania | 17 583 | 18 845 |
| Romania | 13 674 | 14 958 |
| Serbia | 16 461 | 14 107 |
| Slovak Republic | 13 988 | 11 804 |
| Cyprus | 7 081 | 9 078 |
| Estonia | 5 671 | 8 031 |
| Czech Republic | 8 465 | 7 671 |
| Croatia | 8 667 | 7 488 |
| Slovenia | 4 220 | 6 130 |
| Albania | 1 618 | 2 165 |
| North Macedonia | 1 442 | 2 138 |
| Bosnia and Herzegovina | 1 389 | 1 508 |
| Bulgaria | 2 445 | 1 066 |
| Ukraine | 5 887 | 1 063 |
| Republic of Moldova | 804 | 981 |
| Georgia | 719 | 922 |
| Montenegro | 689 | 774 |
| Malta | 536 | 539 |
| Kosovo | 455 | 462 |
| Latvia | 324 | 185 |
| **Sub-total Target Group countries** | **249 533** | **264 580** |
| Spain | 57 157 | 65 922 |
| France | 33 770 | 35 909 |
| Italy | 32 799 | 29 669 |
| Belgium | 23 544 | 20 369 |
| Germany | 27 199 | 20 249 |
| Finland | 14 971 | 18 474 |
| Netherlands | 12 668 | 12 079 |
| Sweden | 7 655 | 9 544 |
| Ireland | 9 794 | 8 914 |
| Portugal | 3 085 | 6 728 |
| Iceland | 1 715 | 2 045 |
| Greece | 90 | 102 |
| Andorra | 52 | 56 |
| San Marino | 18 | 20 |
| **Sub-total other countries** | **224 517** | **230 080** |
| **Target Group countries through other countries** | **324** | **614** |
| **Total** | **474 374** | **495 274** |

---

Outstanding loans by country are presented in Note G.

FINANCIAL STATEMENTS 2025

**NOTE P - Net gains or losses from financial instruments at fair value through profit or loss**

Net gains or losses from financial instruments at fair value through profit or loss cover the profit and loss items relative to financial instruments, except for the interest income and charges presented under Interest margin (Note N).

---

| | | |
|:---|:---|:---|
|  | **2025** | € thousand<br>**2024** |
| Net result from fair value hedging instruments | 399 073 | 60 733 |
| Revaluation of hedged items attributable to hedged risks | (403 269) | (60 612) |
| Result from financial instruments at fair value through profit or loss | (9 440) | 124 |
| Revaluation of exchange positions | (116) | (53) |
| Value adjustment for own credit risk (Debit Valuation Adjustment – DVA) | (16) | 36 |
| Value adjustment for the risk of the counterparty (Credit Valuation Adjustment - CVA) | 149 | (268) |
| **Total** | **(13 619)** | **(40)** |

---

**NOTE Q - General operating expenses**

---

| | | |
|:---|:---|:---|
|  | **2025** | € thousand<br>**2024** |
| Wages and salaries | (35 999) | (33 531) |
| Social charges and pension costs | (9 311) | (8 779) |
| Other general operating expenses | (17 429) | (16 140) |
| **Total** | **(62 739)** | **(58 450)** |

---

As at 31 December 2025, the Bank staff was composed of 4 appointed officials (Governor and Vice-Governors) and 244 professional staff. As at 31 December 2024, there were 4 appointed officials (Governor and Vice-Governors) and 231 professional staff.

**NOTE R - Cost of risk**

The general impairment valuation model used by the CEB is based on the following two steps:

● assessing whether there is a significant increase
 in credit risk since initial recognition, and

● measuring the impairment allowance on the 12-month
 expected losses basis if there has been no significant increase in credit risk since initial recognition or on
 the full lifetime expected losses basis (i.e. expected loss at maturity) if there has been a significant increase in credit risk
 since initial recognition.

These two steps must be based on a forward-looking approach.

**Significant increase in credit risk**

The assessment of a significant increase in credit risk is measured at the level of each transaction based on indicators and thresholds that vary according to the type of counterparty and its internal rating.

The indicator used to assess a significant increase in credit risk is the counterparty's internal credit rating. The internal rating system is described in Chapter 1 of Note B (on Credit Risk). The assessment is based on a relative criterion namely the number of notches of downgrades compared to the original rating. However, where the transaction was already present in the bank's portfolio as at 1 January 2018, the criterion for assessing a significant increase in credit risk is absolute according to the internal credit rating at the valuation date.

In both cases, the deterioration in credit quality is considered significant, and the transaction is classified in stage 2 if the internal credit rating at the valuation date is 3.5 or below. However, sovereigns are systematically classified in stage 1 given the CEB's Preferred Creditor Status.

Assets are considered in default and classified in stage 3 in the event of a payment delay of more than 90 days. During the year 2025, no defaults occurred in the Bank's portfolio.

FINANCIAL STATEMENTS 2025

**Forward-looking approach**

The Bank takes forward-looking information into account in measuring Expected Credit Losses (ECL).

The Bank has chosen to use three macroeconomic scenarios, covering a wide range of potential future economic conditions. Currently, the scenarios are defined by Moody's Analytics and updated on a monthly basis.

The main macroeconomic variables are the evolution of GDP in the euro area and the evolution of stock markets in Europe. The modelling of macroeconomic variables over the projection horizon is based on Monte Carlo simulations using an autoregressive model with two variables and three lags.

The scenarios used under IFRS 9 are as follows:

● a base scenario, which describes the most likely economic situation over the 5-year projection horizon;

● an adverse scenario, which reflects the impact of the materialisation of risks weighing on the base scenario, resulting in a less favourable economic situation. This scenario is defined as the 10% quantile in Monte Carlo simulations of GDP growth in the euro area;

● a favourable scenario, which reflects the materialisation of risks resulting in a better economic situation. This scenario is defined as the 90% quantile in Monte Carlo simulations of GDP growth in the euro area.

In order to arrive at a balanced estimate of the provisions, the probability of occurrence of the favourable scenario is equal to the probability of occurrence of the adverse scenario.

The weights assigned to the scenarios are as follows:

● 60% for the base scenario,

● 20% for the adverse scenario, and

● 20% for the favourable scenario.

**Cost of risk provision for the period**

---

| | | |
|:---|:---|:---|
|  | **2025** | € thousand<br>**2024** |
| Net allowances to impairment - capital | 5 950 | (9 013) |
| Net allowances to impairment - interest | 52 | (57) |
| **Total** | **6 002** | **(9 070)** |

---

**Detail of the cost of risk for the period**

---

| | | |
|:---|:---|:---|
|  | **2025** | € thousand<br>**2024** |
| Balances with central banks | 76 | 116 |
| Financial assets at fair value through equity | 1 047 | (866) |
| Financial assets at amortised cost |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans | 3 895 | (6 013) |
| &nbsp;&nbsp;&nbsp;&nbsp;Advances | 649 | (1 054) |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt securities | 14 | (292) |
| Other assets | 74 | 50 |
| Financing commitments | 247 | (1 010) |
| **Total** | **6 002** | **(9 070)** |
| Cost of risk of unimpaired outstanding | 6 002 | (9 070) |
| &nbsp;&nbsp;&nbsp;&nbsp;of which stage 1 | 6 002 | (9 206) |
| &nbsp;&nbsp;&nbsp;&nbsp;of which stage 2 |  | 136 |
| Cost of risk of impaired outstanding - stage 3 |  |  |

---

FINANCIAL STATEMENTS 2025

**Changes in impairment over the period**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | <br>**Impairment on**<br>**outstanding**<br>**amounts with**<br>**expected 12**<br>**months losses**<br>**(stage 1)** | <br>**Impairment on**<br>**outstanding**<br>**amounts with**<br>**lifetime expected**<br>**losses**<br>**(stage 2)** | <br>**Impairment**<br>**on doubtful**<br>**outstanding**<br>**amounts**<br>**(stage 3)** | € thousand<br>**Total** |
| **As at 1 January 2025** | **(27 765)** |  |  | **(27 765)** |
| Net allowances to impairment |  |  |  |  |
| Financial assets acquired during the period | (6 600) |  |  | (6 600) |
| Financial assets derecognised during the period | 3 247 |  |  | 3 247 |
| Transfer to stage 1 |  |  |  |  |
| Transfer to stage 2 |  |  |  |  |
| Transfer to stage 3 |  |  |  |  |
| Other allowances/reversals without stage transfer | (9 356) |  |  | (9 356) |
| **As at 31 December 2025** | **(21 762)** |  |  | **(21 762)** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | <br>**Impairment on**<br>**outstanding**<br>**amounts with**<br>**expected 12**<br>**months losses**<br>**(stage 1)** | <br>**Impairment on**<br>**outstanding**<br>**amounts with**<br>**lifetime expected**<br>**losses**<br>**(stage 2)** | <br>**Impairment**<br>**on doubtful**<br>**outstanding**<br>**amounts**<br>**(stage 3)** | € thousand<br>**Total** |
| **As at 1 January 2024** | **(18 558)** | **(136)** |  | **(18 694)** |
| Net allowances to impairment |  |  |  |  |
| Financial assets acquired during the period | (7 707) |  |  | (7 707) |
| Financial assets derecognised during the period | 1 981 | 136 |  | 2 117 |
| Transfer to stage 1 |  |  |  |  |
| Transfer to stage 2 |  |  |  |  |
| Transfer to stage 3 |  |  |  |  |
| Other allowances/reversals without stage transfer | (3 481) |  |  | (3 481) |
| **As at 31 December 2024** | **(27 765)** |  |  | **(27 765)** |

---

**NOTE S - Financing commitments given or received**

---

| | | |
|:---|:---|:---|
|  | <br>**31/12/2025** | € thousand<br>**31/12/2024** |
| Financing commitments given |  |  |
| To credit institutions | 1 865 354 | 1 409 978 |
| To customers | 5 046 944 | 5 198 542 |
| **Total financing commitments given** | **6 912 298** | **6 608 520** |
| Impairment of financing commitments given | 3 004 | 3 251 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of which stage 1 | 3 004 | 3 251 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of which stage 2 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of which stage 3 |  |  |

---

No financing commitment received was recorded as at 31 December 2025.

**NOTE T - Contingent liabilities and other significant disclosures**

Following the identification of a potential liability towards a third-party entity, the CEB may be required to pay an amount of €1.9 million. At this stage, although the risk of this potential liability materialising cannot be excluded, it remains highly unlikely.

**NOTE U - Post-Balance sheet events**

No material events that would require disclosure or adjustment to these financial statements occurred between 31 December 2025 and the closing date of the accounts by the Governor on 4 March 2026.

## Ex-3

**Exhibit 3**

**Description of the Registrant**

This description of the Council of Europe Development Bank (the "CEB" or the "Bank") is dated March 24, 2026 and appears as Exhibit 3 to the annual report on Form 18-K of the CEB for the fiscal year ended December 31, 2025 (the "CEB 2025 Annual Report on Form 18-K").

---

| | |
|:---|:---|
| PRESENTATION OF FINANCIAL INFORMATION | 2 |
| THE COUNCIL OF EUROPE DEVELOPMENT BANK | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Overview | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Legal Status | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Member States | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Relationship with the Council of Europe | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cooperation with the EU and Other International Institutions | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The CEB as ODA-Eligible International Organization | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Strategic Framework 2023-2027 | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CEB Operations in Ukraine | 8 |
| CAPITALIZATION AND INDEBTEDNESS | 9 |
| CAPITAL STRUCTURE | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subscribed, Called and Uncalled Capital | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reserves | 11 |
| OPERATIONS | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Overview | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial Means of Action | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Project Financing | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Overview of CEB's Lending Activities | 14 |
| FINANCIAL REVIEW | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Overview | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Results of Operations | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Balance Sheet | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk Management | 22 |
| GOVERNANCE | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amendments to the Articles in 2025 | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Governing Board | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Administrative Council | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current Membership of the Governing Board and the Administrative Council | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Governor | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Auditing Board | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Staff | 30 |

---

THE DELIVERY OF THIS DOCUMENT AT ANY TIME DOES NOT IMPLY THAT THE INFORMATION IS CORRECT AS OF ANY TIME SUBSEQUENT TO ITS DATE. THIS DOCUMENT (OTHERWISE THAN AS PART OF A PROSPECTUS CONTAINED IN A REGISTRATION STATEMENT FILED UNDER THE U.S. SECURITIES ACT OF 1933) DOES NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY ANY SECURITIES OF COUNCIL OF EUROPE DEVELOPMENT BANK.

------

**PRESENTATION OF FINANCIAL INFORMATION**

The capital of the CEB is denominated, and its accounts are kept, in euro. As used herein, the terms "euros", "EUR" and the euro sign (€) refer to the single European currency of the member states of the European Union ("EU") participating in the euro, the terms "dollars", "U.S. dollars", "USD" and the dollar sign ($) refer to United States dollars, the term "GBP" refers to British pounds, the term "HKD" refers to Hong Kong dollars, the term "AUD" refers to Australian dollars, the term "CNY" refers to Chinese yuan, and the term "DKK" refers to Danish kroner.

Any discrepancies in the tables included in this annual report between the amounts and the totals thereof are due to rounding.

**THE COUNCIL OF EUROPE DEVELOPMENT BANK**

**Overview**

The Council of Europe Development Bank is a multilateral development bank ("MDB") with a social mandate.

The CEB was established in 1956 by eight Council of Europe member states pursuant to a partial agreement between those states (the "Partial Agreement"). The Bank is governed by the Third Protocol to the General Agreement on Privileges and Immunities of the Council of Europe of March 6, 1959 (the "Protocol"), by its Articles of Agreement as amended (the "Articles") and by regulations issued pursuant to the Articles. The CEB falls under the supreme authority of the Council of Europe but is legally separate and financially autonomous from it. The Bank is solely responsible for its own indebtedness. Currently, 43 European states are members of the Bank (the "Member States"). See "—Member States" below for further details.

Originally, the Bank's primary purpose was to finance social programs related to the resettlement of refugees migrating to and between European countries in the aftermath of World War II. The Bank later extended the scope of its activities to providing aid to victims of natural or ecological disasters and to supporting other social objectives directly contributing to strengthening social cohesion in Europe. These other social objectives currently include education and vocational training, health and social care, social and affordable housing, urban, rural and regional development, micro-, small and medium-sized enterprises ("MSME") financing, microfinance, protection of the environment, protection and rehabilitation of historic and cultural heritage, and infrastructure of administrative and judicial public services. See "Operations".

In order to serve these objectives, the Bank grants or guarantees long-term loans to its Member States or institutions approved by them. Since its inception, the CEB has disbursed approximately €73.3 billion in loans. The CEB's loans and guarantees typically cover only part of the cost of any project, supplementing each borrower's own funds and credits from other sources, which may include other multilateral lending institutions. With certain exceptions, the Bank generally does not lend more than 50% of the cost of a project. As of December 31, 2025, the CEB had the equivalent of €23.6 billion of loans outstanding, excluding interest receivable and fair value adjustments of loans hedged by derivative instruments.

The CEB funds its operations primarily through debt offerings in the international capital markets. As of December 31, 2025, the Bank had total outstanding funded debt (debt securities, excluding interest payable thereon and value adjustments of debt securities hedged by derivative instruments) of €31.6 billion. The Bank's capital consists of participating certificates which are subscribed to by its Member States. Starting with subscribed capital equivalent to €5.7 million in 1956, the Bank had subscribed capital of €9.6 billion as of December 31, 2025. The called capital of the Bank amounted to €1.8 billion as of December 31, 2025. See "Capital Structure".

The Governing Board may, upon a proposal of the Administrative Council, make calls upon subscribed and unpaid capital in order to enable the CEB to meet its obligations, including repaying the Bank's indebtedness. Since the CEB's inception, no such calls have ever been made. In addition, the Governing Board may, upon a proposal of the Administrative Council, decide to increase the Bank's subscribed capital, as it did in December 2022, when the Governing Board approved a capital increase with an aggregate maximum amount of €4.25 billion. For the first time in the Bank's history, the "paid-in" portion of the capital increase in the amount of up to €1.20 billion was financed through cash contributions by Member States. The capital increase aimed to increase the Bank's subscribed capital from €5.6 billion to up to €9.8 billion and the called capital from €624.3 million to up to €1.8 billion. The subscription period ended on December 31, 2024, with a final subscription rate of 95.1%. As a result, the Bank's subscribed capital increased to €9.6 billion and its called capital increased to €1.8 billion. See "Capital Structure".

The CEB is supervised by a Governing Board and an Administrative Council, each of which is composed of representatives of each of the Member States. The Bank is represented in all of its transactions and legal proceedings by a Governor appointed for a five-year term by the Governing Board. The Bank's operational headquarters are located at 55, avenue Kléber, 75116 Paris, France.

**Legal Status**

The CEB was established on April 16, 1956, pursuant to the Articles adopted by the Committee of Ministers of the Council of Europe (the "Committee of Ministers"). The Committee of Ministers is the Council of Europe's decision-making body. It comprises the ministers of foreign affairs of all member states of the Council of Europe, or their permanent diplomatic representatives in Strasbourg, France. The Articles form an integral part of the Protocol that also governs the CEB. The Protocol endows the CEB with a separate juridical personality with the capacity to enter into contracts, acquire and dispose of property, institute legal proceedings and carry out transactions related to its statutory purposes. The Protocol also grants the CEB various privileges and immunities in the Member States, including (a) an exemption from all direct taxes, (b) freedom of its property and assets from governmental restrictions, regulations, controls and moratoria of any nature, (c) immunity of its property and assets from search, requisition, confiscation, expropriation or any other form of distraint by executive or legislative action, and (d) immunity of its property and assets from all forms of seizure, attachment or execution before the delivery against the CEB of a final enforceable judgment rendered by a court of competent jurisdiction. By virtue of the Protocol, the CEB is subject to a national law only to the extent expressly agreed to by the CEB and to the extent that national law does not derogate from the Protocol or the Articles. However, notwithstanding certain exceptions, the Protocol subjects the CEB to the jurisdiction of the courts of its Member States and those states where the CEB has contracted or guaranteed loans.

**Member States**

According to the Articles, members of the CEB may include member states of the Council of Europe, or, upon the Bank's authorization, a European state which is not a member of the Council of Europe or an international institution with a European focus. No such international institution has ever been a member of the Bank.

The number of Member States of the Bank has increased from 22 in 1991 to 43 today, as a result of new Member States joining, primarily from Central and Eastern Europe. Most recently, Ukraine became a Member State of the Bank in 2023. The current members of the Bank and their dates of accession are set forth in the table below:

Member States of the Council of Europe Development Bank and Year of Accession

---

| | | | |
|:---|:---|:---|:---|
| Albania | &nbsp;&nbsp;1999 | Liechtenstein | &nbsp;&nbsp;1976 |
| Andorra | &nbsp;&nbsp;2020 | Lithuania | &nbsp;&nbsp;1996 |
| Belgium | &nbsp;&nbsp;1956 | Luxembourg | &nbsp;&nbsp;1956 |
| Bosnia and Herzegovina | &nbsp;&nbsp;2003 | Malta | &nbsp;&nbsp;1973 |
| Bulgaria | &nbsp;&nbsp;1994 | Moldova (Republic of) | &nbsp;&nbsp;1998 |
| Croatia | &nbsp;&nbsp;1997 | Montenegro | &nbsp;&nbsp;2007 |
| Cyprus | &nbsp;&nbsp;1962 | Netherlands | &nbsp;&nbsp;1978 |
| Czech Republic | &nbsp;&nbsp;1999 | North Macedonia | &nbsp;&nbsp;1997 |
| Denmark | &nbsp;&nbsp;1978 | Norway | &nbsp;&nbsp;1978 |
| Estonia | &nbsp;&nbsp;1998 | Poland | &nbsp;&nbsp;1998 |
| Finland | &nbsp;&nbsp;1991 | Portugal | &nbsp;&nbsp;1976 |
| France | &nbsp;&nbsp;1956 | Romania | &nbsp;&nbsp;1996 |
| Georgia | &nbsp;&nbsp;2007 | San Marino | &nbsp;&nbsp;1989 |
| Germany | &nbsp;&nbsp;1956 | Serbia | &nbsp;&nbsp;2004 |
| Greece | &nbsp;&nbsp;1956 | Slovak Republic | &nbsp;&nbsp;1998 |
| Holy See | &nbsp;&nbsp;1973 | Slovenia | &nbsp;&nbsp;1994 |
| Hungary | &nbsp;&nbsp;1998 | Spain | &nbsp;&nbsp;1978 |
| Iceland | &nbsp;&nbsp;1956 | Sweden | &nbsp;&nbsp;1977 |
| Ireland | &nbsp;&nbsp;2004 | Switzerland | &nbsp;&nbsp;1974 |
| Italy | &nbsp;&nbsp;1956 | Türkiye | &nbsp;&nbsp;1956 |
| Kosovo | &nbsp;&nbsp;2013 | Ukraine | &nbsp;&nbsp;2023 |
| Latvia | &nbsp;&nbsp;1998 |  |  |

---

As a sign of solidarity among Member States, the Bank aims to provide increased support to a group of 23 Central, Eastern and South Eastern European countries, namely Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, the Czech Republic, Estonia, Georgia, Hungary, Kosovo, Latvia, Lithuania, Malta, Moldova (Republic of), Montenegro, North Macedonia, Poland, Romania, Serbia, the Slovak Republic, Slovenia, Türkiye and Ukraine (collectively, the "Target Group Countries").

**Relationship with the Council of Europe**

Founded in 1949, the Council of Europe is a 46-member international organization that works to protect human rights, pluralist democracy and the rule of law; to promote awareness for and encourage the development of Europe's cultural identity and diversity; to find common solutions to the challenges facing European society; and to consolidate democratic stability in Europe by backing political, legislative and constitutional reform. Most countries in Europe are members of the Council of Europe.

Only one member state of the EU, Austria, is a member of the Council of Europe but not of the CEB. The Holy See, while a member of the CEB, is not a member of the Council of Europe but an observer to the Committee of Ministers. Kosovo is a member of the CEB but not of the Council of Europe.

The CEB was established pursuant to the Partial Agreement between those Council of Europe member states that wished to become members of the CEB. As a general matter, partial agreements permit member states of the Council of Europe to engage in Council of Europe activities without the approval of all member states. Activities governed by a partial agreement remain an activity of the Council of Europe in the same way as other Council of Europe activities, except that activities pursuant to partial agreements are endowed with their own budgets and working methods determined only by the member states that have entered into the partial agreement. A "Secretariat of the Partial Agreement" acts as a liaison between the Council of Europe and the CEB. The relationship between the two organizations is also guided in practice by the Articles, the Protocol and various rules of procedure for the Bank's governing bodies.

The CEB acts under the supreme authority of the Council of Europe, and its social objectives are in line with those of the Council of Europe. The CEB's statutory purposes cannot be changed except with the approval of the Committee of Ministers. In addition, the Council of Europe must be regularly informed of the CEB's activities, and the CEB's Governing Board is required to state a position on any recommendations and opinions concerning the Bank that the Committee of Ministers and the Parliamentary Assembly of the Council of Europe may transmit to it. The Secretary General of the Council of Europe is also permitted to participate in, or be represented at, meetings of the CEB's Governing Board and Administrative Council, without the right to vote. Finally, the Council of Europe also evaluates projects from a political and social perspective.

Except as noted herein, however, the CEB is separate from the Council of Europe, is governed by separate supervisory and administrative bodies and maintains its own sources of revenues and financial operations.

**Cooperation with the EU and Other International Institutions**

Over the years, the CEB has forged partnerships with other international organizations and donors to bring additional financing and greater expertise to the projects it supports. In addition to its natural ties with the Council of Europe, the CEB has become a partner of choice to the EU (the CEB's main donor) and regularly cooperates with other international financial institutions, as well as with several United Nations' specialized agencies. The CEB took part in the following programs in 2025:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the Western Balkans Investment Framework ("WBIF"), in which the CEB participates together
 with the EU, the European Investment Bank ("EIB"), the European Bank for Reconstruction and Development ("EBRD"),
 the World Bank Group, Kreditanstalt für Wiederaufbau ("KfW"), Agence Française de Développement ("AFD")
 and several bilateral donors and which aims at facilitating access to European financing for the countries in the Western Balkans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the Eastern Europe Energy Efficiency and Environmental Partnership (E5P), a fund that combines contributions
 from the EU and donor countries in favor of municipal investments in energy efficiency and environmental projects in Armenia, Azerbaijan,
 Belarus, Georgia, the Republic of Moldova and Ukraine;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Strengthening Healthcare Infrastructure for All ("SHIFA"), a €140 million project
 aiming to establish healthcare centers for refugees and host communities across Türkiye and which is financed by the EU Facility
 for Refugees in Türkiye (€90 million) and the EU's response to the 2023 earthquakes (€50 million);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· two grant-funded initiatives launched jointly with the EU in 2021 and completed in 2025: Housing
 and Empowerment for Roma (HERO), which aimed to improve access of vulnerable Roma to housing and employment and Partnerships, and
 Financing for Migrant Inclusion (PAFMI), which aimed to foster the inclusion of migrants in EU member states that are also members
 of the CEB;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the InvestEU Programme, which supports sustainable investment, innovation and job creation in Europe
 and provides guarantees for eligible CEB loans through the InvestEU Fund and technical assistance and advisory support for eligible
 CEB projects through the InvestEU Advisory Hub;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the Neighbourhood Investment Platform, a facility which finances infrastructure projects and the
 private sector in countries covered by the European Neighbourhood Policy ("ENP") by blending resources from the EU budget,
 EU Member States, European financial institutions and ENP partner countries and in which the CEB participates in matters with a focus
 on human capital investments in the Republic of Moldova and Georgia;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the European Social Fund Plus, which is the EU's main instrument for investing in people, supporting
 the implementation of the European Pillar of Social Rights and economic, territorial and social cohesion in the EU;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· European Networks for the Integration of Migrants and Refugees, including the European Partnership
 on Inclusion of Migrants and Refugees – as part of the Urban Agenda for the EU – which aims to increase knowledge on
 integration issues and sharing good practices among countries, regions, cities and financial institutions; as well as 'Regions4Integration'
 launched in April 2019 by the European Committee of Regions as a political platform for European mayors and regional leaders to showcase
 positive examples of integration of migrants and refugees, share knowledge and best practices and promote diversity as an added value
 to building inclusive cities and ensuring social cohesion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· a number of initiatives, such as the Harmonized Indicators for Private Sector Operations (HIPSO)
 initiative; health and social care partnerships and the Climate Action in Financial Institutions initiative, based on the Five Voluntary
 Principles for Mainstreaming Climate Action; the World Observatory on Subnational Governance Finance and Investment, an initiative
 led by the Organisation for Economic Co-operation and Development ("OECD") and the United Cities and Local Governments
 (UCLG) and financially supported, among others, by the CEB; the European Association of Long-Term Investors (ELTI), the first joint
 report on the MDB contributions to financing the Sustainable Development Goals released in December 2020 and the signing of the Joint
 Declaration of All Public Development Banks in the World; as well as the launch of the Coalition for Social Investment together with
 the French Development Agency ("AFD"), at the Finance in Common Summit ("FICS") on November 12, 2020; and
 the FICS Coalition on Resilient Cities and Regions, an initiative launched by AFD and the Global Fund for Cities and Development
 (FMDV) in October 2022;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the UN Framework Convention on Climate Change, on which the CEB obtained permanent observer status
 in 2018;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the European Platform on Combatting Homelessness (EPOCH), as part of a dedicated working group co-chaired
 with the European Commission; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the Heads of Multilateral Development Banks ("MDBs") Group, which is a forum
 for dialogue and coordination among the leaders of major MDBs and was chaired by the CEB in 2025.

At the end of 2025, the balance of fiduciary accounts funded entirely or mainly by the EU stood at around €36.7 million. These accounts represented around 58% of the total balance of fiduciary accounts managed by the CEB, which stood at €63.1 million at the end of 2025.

The CEB has also signed memoranda of understanding or other cooperation agreements with the EBRD, the European Stability Mechanism (ESM), the World Bank Group, the Nordic Investment Bank (NIB), the EIB, KfW, the Inter-American Development Bank (IDB), the United Nations Children's Fund ("UNICEF"), the United Nations High Commissioner for Refugees (UNHCR), as well as with the United Nations International Computing Centre (UNICC). Furthermore, the Bank maintains a collaboration with other UN agencies, such as the World Health Organization ("WHO") and the International Organization for Migration ("IOM"). The amount of grants approved by the CEB in favor of UNICEF, UNHCR, the United Nations Development Programme (UNDP), WHO and IOM stood at €30.5 million at the end of 2025.

**The CEB as ODA-Eligible International Organization**

In 2014, the CEB was added to the list of Official Development Assistance ("ODA")-eligible international organizations. ODA is a term coined by the Development Assistance Committee (DAC) of the OECD that is widely used to measure international aid flows from donors to developing countries to support their economic development. ODA is the key measure used in practically all aid targets and assessments of aid performance. In reporting their ODA, donor countries refer to a list of ODA-eligible international organizations. Contributions to these organizations, which are not earmarked, may be reported as ODA in whole or in part.

The CEB's ODA eligibility recognizes the concessional character (at least partially) of the CEB's lending and its grant element. It also aligns the CEB with its peers, such as the EBRD, the EIB and the World Bank Group, all of which are also listed as ODA-eligible international organizations.

**Strategic Framework 2023-2027**

Established in 1956 in order to finance social programs for refugees and people displaced by World War II, the CEB's scope of action has progressively broadened to include other objectives that contribute to strengthening social cohesion. The CEB's current strategic framework for the period 2023-2027 (the "Strategic Framework 2023-2027") was adopted in December 2022 as a blueprint of the CEB's operations over the next five years in support of more inclusive, resilient and sustainable societies in its Member States.

According to the Strategic Framework 2023-2027, the CEB's focus is on its mission and the pursuit of three overarching goals:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Respond to evolving social development and inclusion challenges in a flexible manner;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Invest in the assistance to and integration of refugees and migrants in their host communities and in preparedness for future
 migratory dynamics; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Support the reconstruction and rehabilitation needs of Ukraine's social sectors.

The Bank's strategy focuses on strengthening its ability to respond to the numerous challenges faced by its Member States through three 'lines of action' that underpin the CEB's social mandate. The lines of action presented in the graphic below reflect the different channels through which the CEB's engagement in its different sectors of operation contribute to promoting social cohesion. Although the CEB will remain engaged in all its sectors of activity, the Strategic Framework 2023-2027 provides for a sharper focus on the following sectors of activity: health and social care; education and vocational training; social and affordable housing; urban, rural and regional development; MSMEs; and microfinance. In addition, cross-cutting themes relating to climate action, gender equality and digitalization are intended to guide the way in which CEB activities in all sectors are designed and implemented.

![](tm269258d1_18kimg001.jpg)

The focus on vulnerable groups is expected to continue to define the CEB's commitment to social cohesion. Under the Strategic Framework 2023-2027, the Bank is committed to further strengthening its special attention to vulnerable groups by systematically applying a "vulnerability lens" to identify, assess and address vulnerabilities and design better, more targeted solutions that maximize its social impact. The CEB also intends to continue to diversify its client base, staying close to final beneficiaries and underserved communities. It plans to step up its co-operation with local authorities, cities and social economy entities, while broadening the types of financing instruments it uses and offering tailor-made solutions to its clients. The CEB strives to adapt quickly to evolving circumstances while continuing to deliver on its overarching goals. Furthermore, the CEB has been engaging and cooperating more closely with partner institutions in the field of development finance, including with the EU and peer MDBs. The Strategic Framework 2023-2027 aims to enable the CEB to help its Member States respond more effectively to multiple crises and strengthen Europe's social fabric.

Under the Strategic Framework 2023-2027, the CEB seeks to achieve a volume of loan approvals of around €4.3 billion per year. This goal has been achieved over the course of the first three years of the Strategic Framework 2023-2027, with approvals in the amounts of €4.5 billion in 2025, €4.5 billion in 2024, and €4.1 billion in 2023.

**CEB Operations in Ukraine**

Ukraine became the CEB's 43<sup>rd</sup> Member State on June 15, 2023. As of year-end 2025, the CEB has contributed an amount of €573.4 million in loans and grants to Ukraine since its accession, and other funding for approval through 2027 is expected to increase this to a total of €1.2 billion.

**CAPITALIZATION AND INDEBTEDNESS**

The following table sets forth the CEB's capitalization and indebtedness as of December 31, 2025. It does not otherwise give effect to any transaction since that date. Since December 31, 2025, there has been no material change in the capitalization of CEB, except for the following issuances:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· *<u>Under the CEB's U.S. SEC-registered Debt Program</u>* : USD 1.0 billion (approximately
 €0.9 billion based on the exchange rate at the time of issuance) 3.750% Global Notes due January 14, 2031 in January 2026.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· *<u>Under the CEB's Medium Term Note Program</u>* : GBP 750.0 million (approximately
 €864 million based on the exchange rate at the time of issuance) 3.875% Notes due January 12, 2029 in January 2026, AUD 650.0
 million (approximately €374 million based on the exchange rate at the time of issuance) 4.600% Notes due January 21, 2031 in
 January 2026, DKK 1.0 billion (approximately €134 million based on the exchange rate at the time of issuance) 2.175%
 Notes due February 5, 2029 in February 2026, USD 500.0 million (approximately €423 million based on the exchange rate at
 the time of issuance) SOFR Floating Rate Notes due February 11, 2030 in February 2026 and HKD 400.0 million (approximately €43
 million based on the exchange rate at the time of issuance) 2.520% Notes due December 4, 2029 in February 2026, EUR 100 million 0.000%
 Notes due April 15, 2028 in March 2026, HKD 200 million (approximately €22 million based on the exchange rate at the time
 of issuance) 2.600% Notes due March 18, 2028 in March 2026, GBP 50 million (approximately €58 million based on the exchange
 rate at the time of issuance) 3.875% Notes due January 12, 2029 in March 2026.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· *<u>Under the CEB's Euro Commercial Paper Program</u>* : approximately EUR 1,008 million
 (based on the exchange rate as of March 20, 2026) issued since January 1, 2026; an amount of EUR 908 million was still outstanding
 as of March 20, 2026.

---

| | |
|:---|:---|
|  | **As of<br> December 31, 2025** |
|  | ***(in thousands of euros)*** |
| **Short-term Debt<sup>(1)</sup>** | **5539553** |
| **Long-term Debt<sup>(2)</sup>** | **26065523** |
| **Equity** |  |
| Capital<sup>(3)</sup> |  |
| &nbsp;&nbsp;&nbsp;Subscribed | 9622868 |
| &nbsp;&nbsp;&nbsp;Uncalled | (7856618) |
| &nbsp;&nbsp;&nbsp;Called | 1766250 |
| General Reserve<sup>(4)</sup> | 2987601 |
| Gains or losses recognized directly in equity | (1853) |
| Net profit | 122250 |
| **Total Equity** | **4874248** |
| **Total Capitalization<sup>(5)</sup>** | **30939771** |

---

(1) See "Financial Review—Balance Sheet—Funding". Consists of current portion
 of long-term debt plus existing debt securities with a maturity of less than one year as of the issue date, excluding accrued interest
 and value adjustment of debt securities hedged by derivatives.

(2) See "Financial Review—Balance Sheet—Funding". Consists of non-current portion
 of debt securities with a maturity of more than one year as of the issue date, excluding accrued interest and value adjustment of
 debt securities hedged by derivatives. None of the CEB's debt is guaranteed by other parties or secured.

(3) See "Capital Structure—Subscribed, Called and Uncalled Capital".

(4) The CEB's general reserve represents retained earnings and a portion of the contributions paid
 in by new Member States upon accession. See "Capital Structure—Reserves".

(5) Total capitalization consists of long-term debt and total equity.

**CAPITAL STRUCTURE**

**Subscribed, Called and Uncalled Capital**

Any European state (whether a member or non-member state of the Council of Europe) may, in principle, become a Member State of the Bank. Each Member State of the Bank is required to subscribe to the Bank's capital. The amount of capital required to be subscribed by the applicant as a percentage of total subscribed capital is equivalent to the applicant's anticipated percentage contribution to the budget of the Partial Agreement on the CEB. This amount results from comparing the gross domestic product and the population of the applicant country to those of all Member States combined, with the weighting given to gross domestic product being five times that given to population.

The Bank issues participating certificates, each with a nominal value of €1,000, to its Member States. The number of certificates to be held by each Member State is fixed by the Governing Board and represents that Member State's subscribed capital. At any given time, however, each Member State is required to pay in only a portion of the subscribed capital represented by its certificates. As of December 31, 2025, the Member States' average called capital stood at 18.4% of the subscribed capital. The percentage of subscribed capital to be paid in for the Bank's seventh capital increase was fixed by the Governing Board at 28.24% of the subscribed capital for each subscribing Member State. Total subscribed capital paid-in and to be paid-in is referred to as "called capital". Subscribed capital not paid in remains subject to capital calls by the Governing Board. The difference between the subscribed capital and the called capital is referred to as "uncalled capital".

Although the Member States do not guarantee the CEB's obligations, the Governing Board may make calls upon uncalled capital in order to enable the CEB to meet its obligations, including repaying the Bank's indebtedness. Since the CEB's inception, no such calls have been made. In addition, the Governing Board may decide to increase the Bank's subscribed capital, in which case it sets forth the conditions of such increase, including the percentage of such increased subscribed capital to be paid in and the corresponding payment dates. Capital increases only become effective once the conditions set forth by the Governing Board for such increase have been satisfied (such as a minimum percentage of the capital increase being subscribed). Member States are not required to subscribe to capital increases.

The Bank has completed seven capital increases since 1956. On December 2, 2022, the Governing Board approved the seventh capital increase, which increased the Bank's subscribed capital by a maximum of €4.25 billion, with a maximum of €1.20 billion to be paid-in by the Member States. It was agreed that the capital increase would become effective at the end of the calendar month in which at least 67% of the participating certificates offered had been subscribed. As this threshold was reached in February 2024, the capital increase became effective on February 29, 2024. The subscription period ended on December 31, 2024, with a final subscription rate of 95.1%.

As of December 31, 2025, the Bank's subscribed capital amounted to €9.6 billion, while the called capital stood at €1.8 billion (each remaining stable compared to December 31, 2024). The CEB's own funds (subscribed capital, reserves, gains or losses recognized directly in equity and profit for the year) increased to €12.7 billion at year-end 2025 from €12.6 billion at year-end 2024, mainly due to the 2025 net profit variation of gains or losses recognized directly in equity.

Capital allocation by Member State, as of December 31, 2025, is presented in the table below:

Capital Allocation

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  |  |  | ***in thousands of<br> euros*** |
| **Members** | **Subscribed<br> capital** | **Uncalled<br> capital** | **Called<br> capital** | **Percentage of<br> subscribed capital** |
| France | &nbsp;&nbsp;1626363 | &nbsp;&nbsp;1324036 | &nbsp;&nbsp;&nbsp;302327 | &nbsp;&nbsp;16.901% |
| Germany | &nbsp;&nbsp;1626363 | &nbsp;&nbsp;1324036 | &nbsp;&nbsp;&nbsp;302327 | &nbsp;&nbsp;16.901% |
| Italy | &nbsp;&nbsp;1626363 | &nbsp;&nbsp;1324036 | &nbsp;&nbsp;&nbsp;302327 | &nbsp;&nbsp;16.901% |
| Spain | &nbsp;&nbsp;1060700 | &nbsp;&nbsp;863525 | &nbsp;&nbsp;&nbsp;197175 | &nbsp;&nbsp;11.023% |
| Türkiye | &nbsp;&nbsp;689600 | &nbsp;&nbsp;561411 | &nbsp;&nbsp;&nbsp;128189 | &nbsp;&nbsp;7.166% |
| Netherlands | &nbsp;&nbsp;353082 | &nbsp;&nbsp;287446 | &nbsp;&nbsp;&nbsp;65636 | &nbsp;&nbsp;3.669% |
| Belgium | &nbsp;&nbsp;291826 | &nbsp;&nbsp;237581 | &nbsp;&nbsp;&nbsp;54245 | &nbsp;&nbsp;3.033% |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  |  |  | ***in thousands of<br> euros*** |
| **Members** | **Subscribed<br> capital** | **Uncalled<br> capital** | **Called<br> capital** | **Percentage of<br> subscribed capital** |
| Greece | &nbsp;&nbsp;291826 | &nbsp;&nbsp;237581 | &nbsp;&nbsp;&nbsp;54245 | &nbsp;&nbsp;3.033% |
| Portugal | &nbsp;&nbsp;247163 | &nbsp;&nbsp;201218 | &nbsp;&nbsp;&nbsp;45945 | &nbsp;&nbsp;2.568% |
| Poland | &nbsp;&nbsp;227784 | &nbsp;&nbsp;185441 | &nbsp;&nbsp;&nbsp;42343 | &nbsp;&nbsp;2.367% |
| Denmark | &nbsp;&nbsp;159244 | &nbsp;&nbsp;129640 | &nbsp;&nbsp;&nbsp;29604 | &nbsp;&nbsp;1.655% |
| Sweden | &nbsp;&nbsp;139172 | &nbsp;&nbsp;123724 | &nbsp;&nbsp;&nbsp;15448 | &nbsp;&nbsp;1.446% |
| Norway | &nbsp;&nbsp;123937 | &nbsp;&nbsp;100898 | &nbsp;&nbsp;&nbsp;23039 | &nbsp;&nbsp;1.288% |
| Bulgaria | &nbsp;&nbsp;110924 | &nbsp;&nbsp;90304 | &nbsp;&nbsp;&nbsp;20620 | &nbsp;&nbsp;1.153% |
| Romania | &nbsp;&nbsp;106404 | &nbsp;&nbsp;86625 | &nbsp;&nbsp;&nbsp;19779 | &nbsp;&nbsp;1.106% |
| Ukraine | &nbsp;&nbsp;101902 | &nbsp;&nbsp;90591 | &nbsp;&nbsp;&nbsp;11311 | &nbsp;&nbsp;1.059% |
| Ireland | &nbsp;&nbsp;85796 | &nbsp;&nbsp;69848 | &nbsp;&nbsp;&nbsp;15948 | &nbsp;&nbsp;0.892% |
| Hungary | &nbsp;&nbsp;79541 | &nbsp;&nbsp;64755 | &nbsp;&nbsp;&nbsp;14786 | &nbsp;&nbsp;0.827% |
| Czech Republic | &nbsp;&nbsp;76432 | &nbsp;&nbsp;62224 | &nbsp;&nbsp;&nbsp;14208 | &nbsp;&nbsp;0.794% |
| Finland | &nbsp;&nbsp;69786 | &nbsp;&nbsp;62039 | &nbsp;&nbsp;&nbsp;7747 | &nbsp;&nbsp;0.725% |
| Luxembourg | &nbsp;&nbsp;61686 | &nbsp;&nbsp;50219 | &nbsp;&nbsp;&nbsp;11467 | &nbsp;&nbsp;0.641% |
| Switzerland | &nbsp;&nbsp;53824 | &nbsp;&nbsp;43229 | &nbsp;&nbsp;&nbsp;10595 | &nbsp;&nbsp;0.559% |
| Serbia | &nbsp;&nbsp;45892 | &nbsp;&nbsp;37362 | &nbsp;&nbsp;&nbsp;8530 | &nbsp;&nbsp;0.477% |
| Croatia | &nbsp;&nbsp;37963 | &nbsp;&nbsp;30906 | &nbsp;&nbsp;&nbsp;7057 | &nbsp;&nbsp;0.395% |
| Cyprus | &nbsp;&nbsp;35309 | &nbsp;&nbsp;28746 | &nbsp;&nbsp;&nbsp;6563 | &nbsp;&nbsp;0.367% |
| Slovak Republic | &nbsp;&nbsp;33670 | &nbsp;&nbsp;27411 | &nbsp;&nbsp;&nbsp;6259 | &nbsp;&nbsp;0.350% |
| Albania | &nbsp;&nbsp;23771 | &nbsp;&nbsp;19352 | &nbsp;&nbsp;&nbsp;4419 | &nbsp;&nbsp;0.247% |
| Latvia | &nbsp;&nbsp;22746 | &nbsp;&nbsp;18519 | &nbsp;&nbsp;&nbsp;4227 | &nbsp;&nbsp;0.236% |
| Estonia | &nbsp;&nbsp;22595 | &nbsp;&nbsp;18395 | &nbsp;&nbsp;&nbsp;4200 | &nbsp;&nbsp;0.235% |
| North Macedonia | &nbsp;&nbsp;22595 | &nbsp;&nbsp;18395 | &nbsp;&nbsp;&nbsp;4200 | &nbsp;&nbsp;0.235% |
| Lithuania | &nbsp;&nbsp;22356 | &nbsp;&nbsp;18201 | &nbsp;&nbsp;&nbsp;4155 | &nbsp;&nbsp;0.232% |
| Slovenia | &nbsp;&nbsp;21835 | &nbsp;&nbsp;17776 | &nbsp;&nbsp;&nbsp;4059 | &nbsp;&nbsp;0.227% |
| Iceland | &nbsp;&nbsp;18015 | &nbsp;&nbsp;14666 | &nbsp;&nbsp;&nbsp;3349 | &nbsp;&nbsp;0.187% |
| Malta | &nbsp;&nbsp;18015 | &nbsp;&nbsp;14666 | &nbsp;&nbsp;&nbsp;3349 | &nbsp;&nbsp;0.187% |
| Georgia | &nbsp;&nbsp;17539 | &nbsp;&nbsp;14279 | &nbsp;&nbsp;&nbsp;3260 | &nbsp;&nbsp;0.182% |
| Bosnia and Herzegovina | &nbsp;&nbsp;17207 | &nbsp;&nbsp;14009 | &nbsp;&nbsp;&nbsp;3198 | &nbsp;&nbsp;0.179% |
| Montenegro | &nbsp;&nbsp;11693 | &nbsp;&nbsp;9519 | &nbsp;&nbsp;&nbsp;2174 | &nbsp;&nbsp;0.122% |
| Kosovo | &nbsp;&nbsp;11648 | &nbsp;&nbsp;9483 | &nbsp;&nbsp;&nbsp;2165 | &nbsp;&nbsp;0.121% |
| Moldova (Republic of) | &nbsp;&nbsp;9746 | &nbsp;&nbsp;7934 | &nbsp;&nbsp;&nbsp;1812 | &nbsp;&nbsp;0.101% |
| Andorra | &nbsp;&nbsp;8747 | &nbsp;&nbsp;7121 | &nbsp;&nbsp;&nbsp;1626 | &nbsp;&nbsp;0.091% |
| San Marino | &nbsp;&nbsp;8644 | &nbsp;&nbsp;6916 | &nbsp;&nbsp;&nbsp;1728 | &nbsp;&nbsp;0.090% |
| Liechtenstein | &nbsp;&nbsp;2921 | &nbsp;&nbsp;2374 | &nbsp;&nbsp;&nbsp;547 | &nbsp;&nbsp;0.030% |
| Holy See | &nbsp;&nbsp;243 | &nbsp;&nbsp;183 | &nbsp;&nbsp;60 | &nbsp;&nbsp;0.003% |
| **Total 2025** | &nbsp;&nbsp;**9622868** | &nbsp;&nbsp;**7856618** | &nbsp;&nbsp;**1766250** | &nbsp;&nbsp;**100.00%** |
| **Total 2024** | &nbsp;&nbsp;**9622868** | &nbsp;&nbsp;**7856618** | &nbsp;&nbsp;**1766250** | &nbsp;&nbsp;**100.00%** |

---

**Reserves**

The CEB's general reserves are derived principally from the Bank's profit. Acting upon annual recommendations of the Administrative Council and final resolutions of the Governing Board, the Bank has historically allocated substantially all of its profits towards reserves. In addition, reserves have increased over the years as a result of the accession of new Member States, which are not only required to subscribe to the Bank's capital and to contribute the amount required to be paid in, but also to contribute to the general reserves in proportion to their share in the capital.

At year-end 2025, the general reserve increased to €2.99 billion compared to €2.88 billion at year-end 2024, as a result of the allocation of the 2024 net profit (€124.3 million) to the general reserve, after allocations made to the Ukraine Solidarity Fund and the Social Impact Account ("SIA") (in an amount of €5 million and 7 million, respectively).

**OPERATIONS**

**Overview**

The CEB contributes to the strengthening of social cohesion in Europe through long-term lending to governments, local and regional authorities, public and private financial institutions and other public and private legal entities approved by a Member State. The Bank's activities have broadened since its founding in 1956, when its statutory priorities were to finance projects providing aid to refugees and migrants and to support victims of natural or ecological disasters.

The CEB carries out its mission within a strategic framework that sets the objectives and guidelines for its activity in the medium term in relation to the context within which the Bank operates. In addition to the strategic framework, general guidelines for the CEB's project financing activity are set forth in its policy framework for loan and project financing (called the Loan and Project Financing Policy) and from an operational perspective, in an operational manual called the CEB Handbook for the Preparation and Implementation of Projects.

As of December 31, 2025, the CEB had approved 54 projects in 26 countries in an aggregate amount of €4.5 billion (compared to 44 projects in an aggregate amount of €4.5 billion as of December 31, 2024). Compared to €3.6 billion in 2024, a total of €3.4 billion in loans was disbursed in 2025, of which 10% were disbursed in Ukraine.

The CEB's current strategic course as set forth in its Strategic Framework 2023-2027 focuses on strengthening the Bank's capability to respond to the numerous challenges faced by its Member States through three 'lines of action' that underpin the CEB's social mandate, namely: (i) investing in people and enhancing human capital, (ii) promoting inclusive and resilient living environments and (iii) supporting jobs and economic and financial inclusion. The lines of action reflect the different channels through which the CEB's engagement in its different sectors of operation contribute to promoting social cohesion. For more information on the CEB's Strategic Framework 2023-2027, see "The Council of Europe Development Bank—Strategic Framework 2023-2027." The Strategic Framework 2023-2027 is available on the CEB's website.

The shift in and expansion of the Bank's social objectives over time have been accompanied by a changing geographic focus. When first formed by its eight founding Member States, the Bank's activities were primarily concentrated in Germany, France, Italy, Greece, Türkiye and Cyprus. During the late 1970s and 1980s, as the Bank's membership base expanded, so did its geographical reach, in particular to the countries of Southern Europe, such as Spain and Portugal. The end of the Cold War prompted a new wave of countries adhering to the institution and consequently permitted increased lending to Central and Eastern Europe. Today, the Bank's resources are widespread across its membership base, with 51.5% of loans outstanding in favor of Target Group Countries.

**Financial Means of Action**

The CEB provides assistance in the form of loans, guarantees and contributions from the trust accounts in order to finance bankable projects. To do this, it evaluates the debt sustainability of the borrower and, where applicable, of the guarantor.

Loans granted by the Bank take one of the following forms: (i) loans to Member States; (ii) loans guaranteed by a Member State granted to any legal person approved by that Member State; (iii) loans granted to any legal person approved by a Member State, when the Bank's Administrative Council is satisfied that the loan requested is covered by adequate guarantees.

Upon conditions to be stipulated by the Bank's Administrative Council in each case, the Bank may grant guarantees to financial institutions approved by a Member State for loans to further the Bank's statutory purposes as set out in the Articles and may open and operate trust accounts. Effective as of December 5, 2025, the CEB amended its Articles to clarify that the Bank may receive trust funds not only from its Member States, from allocations of the CEB's net profits or from the Council of Europe, but also from other international institutions and third parties. For the amended Articles, see Exhibit 5 to the CEB 2025 Annual Report on Form 18-K.

Loan applications are prepared by the borrower in coordination with the CEB and are formally submitted by the borrower following the appraisal of the envisaged project by the CEB. Depending on the borrower's capacity and the project complexity, the CEB may provide technical assistance for the preparation of the loan application. Once the project is approved by the Administrative Council, loan applications are placed in the Bank's stock of projects awaiting financing, with a framework loan agreement generally expected to be signed within twelve (12) months following project approval. As disbursements are made, the amount of the stock of projects diminishes correspondingly. For more information on the Bank's stock of projects, see "Financial Review—Balance Sheet—Financing commitments and stock of projects awaiting financing" below.

The loans are granted under the general conditions of the Bank's loan regulations and under the special conditions established in the framework loan agreement. In case of breach of these conditions, the Bank may demand early reimbursement of disbursed loans, in particular in the case of corruption, fraud, money laundering, mis-procurement or when the implementation of the project leads to a violation of the CEB's Environmental and Social Safeguards Policy, the "Convention for the Protection of Human Rights and Fundamental Freedoms" or the "European Social Charter".

**Project Financing**

The principal financing instruments for the CEB's loan operations are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Project Loans are the CEB's direct loans to an entity to finance a predefined investment or a group of related investments.
 The investments financed through a CEB Project Loan are normally concentrated in one of the Bank's sectors of action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· CEB Program Loans are made to intermediary institutions or public entities in order to finance a program of diverse investments
 (small, individual projects or sub-projects) and multi-project programs in one or several CEB sectors of action (multi-sector).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Public Sector Financing Facility (PFF) loans are instruments intended for public entities whose funding is primarily budget-based
 and which aim to remedy temporary interruptions in funding flows and ensure continuity of investments in the social sectors, with
 eligible costs including ongoing investment contracts and maintenance costs (excluding certain personnel costs), financial costs,
 taxes and non-cash items such as depreciation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· In the case of EU Co-Financing Facility ("ECF") loans, eligible costs are those defined by the relevant EU regulations
 or fund-specific rules, as complemented by national rules. ECF loans are intended to facilitate the absorption and use of available
 EU grants by the Bank's Member States for addressing their social investment needs in the CEB's sectors of action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Cross-sectoral loans ("CSLs") are aimed at funding projects that span different sectors with interrelated cross-sectoral
 elements. The CSLs cover eligible costs related to the development of social investments in several sectors of actions linked through
 a set of related aims and objectives as a cross-sectoral element defined during appraisal.

The CEB may finance projects directly or via an intermediary financial institution. The CEB's share of financing may not exceed 50% of the eligible costs of the project or program. Nevertheless, on a case-by-case basis and subject to the approval by the Bank's Administrative Council, the CEB's share of financing may be increased up to 90%, especially in the Target Group Countries, and has reached up to 100% for loans to Ukraine in light of the specific context of an armed conflict.

While the CEB's reference currency is the euro, this does not exclude recourse to other currencies according to borrower specifications and the CEB's refinancing possibilities on the capital markets. The CEB raises funds on the best terms available on the capital markets. It passes these terms on to its borrowers, applying the lowest possible margin which takes into account the need to cover its operating costs.

The CEB's loans are disbursed in tranches, with fixed or floating rates and flexible structures. Tenors and grace periods match the project's financing needs to the extent possible. The mechanisms for disbursement applicable to each loan are specified by the CEB in the loan document at the time of the project's approval by the Administrative Council.

Monitoring is carried out from the time of the project's approval up to its completion. The purpose of the monitoring process is to ensure that the project is implemented in compliance with the framework loan agreement and executed in accordance with the conditions included in the loan document approved by the Bank. In addition, in-depth technical reviews are carried out each year for a subset of projects in implementation. Once a project is completed, a completion report summarizing the project's results is prepared. The Bank draws up an Annual Report on the Preparation and Follow-up of Projects, which provides an overall evaluation of the CEB's project and loan activity along the project cycle, while highlighting the issues encountered in the course of the appraisal and implementation of projects, especially those deemed underperforming during implementation. Post-completion evaluations are also carried out for a subset of projects, in order to measure the long-term economic and social impact of CEB operations, to draw lessons from their structure and implementation, and to improve the quality of the Bank's current and future operations.

Upon fulfilment of the relevant eligibility criteria, the CEB's borrowers may be supported by the CEB's SIA and/or other trust accounts during the preparation or implementation phase of projects. The SIA, formerly Social Dividend Account, was established by the CEB member states in 1995 and financed mainly by contributions from the Member States through allocations from the Bank's annual profit, which constitute dividends of a social nature. The SIA is used to provide loan guarantees, technical assistance, interest subsidies and grant contributions in favor of high social impact projects, located mainly in the Bank's Target Group Countries. Administrative Council Resolution 1666 (2024), approved on November 14, 2024, revised the operating principles of the SIA. In particular, it introduced new prudential ceilings for loan guarantees, enabling the Bank to increase the leverage ratio between SIA resources and guaranteed loans while maintaining a conservative exposure to credit risk. For more information regarding the SIA, see Note K ("Social Impact Account") of the CEB's financial statements for the fiscal year ended December 31, 2025 included in Exhibit 2 to the CEB 2025 Annual Report on Form 18-K.

Several bilateral trust accounts have been established by Member States over time to also finance technical assistance in favor of CEB projects located mainly in the Bank's Target Group Countries. The Spanish Social Cohesion Account (SCA), established by Spain in 2009, is endowed with €4.0 million. The Slovak Inclusive Growth Account (SIGA), established by the Slovak Republic in 2016, is endowed with €4.0 million. The Italian Fund for Innovative Projects (IFIP), established by Italy in 2017, is endowed with €1.0 million.

The CEB has also established several multilateral trust accounts to support highly social projects. The trust accounts are financed by contributions from Member States and allocations from the CEB's net profits as well as contributions from the Council of Europe, other international institutions or third parties. The trust accounts serve to provide technical assistance grants, investment grants and, where applicable, interest subsidies and loan guarantees. The Migrant and Refugee Fund, established in 2015 in response to a surge in arrivals of displaced persons, is endowed with €38.7 million. The Green Social Investment Fund, established in 2020 to help accelerate Member States' transitions towards low-carbon and climate-resilient economies, is endowed with €5.1 million. The Ukraine Solidarity Fund, established in 2022 in response to the Russian aggression against Ukraine, is endowed with €4.0 million. The Disaster Prevention and Recovery Fund, established in 2023 in response to the earthquakes in Türkiye, is endowed with €3.0 million.

**Overview of CEB's Lending Activities**

The tables below summarize the CEB's lending activity in terms of project amounts approved and loans disbursed by country of the borrower over the past two years, as well as the five-year cumulative totals over the 2021–2025 period. Because the Bank's policies and procedures generally result in loans being approved and disbursed in different years, amounts approved and amounts disbursed in any given year do not necessarily relate to the same projects.

Projects approved are projects that have been approved for funding by the Administrative Council. Loans disbursed are loans that have actually been paid to the borrower.

Projects Approved<sup>(1)(2)</sup>

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | | | | in thousands of euros | in thousands of euros |
| **Country** | **2025** | **2025** | **2024** | **2024** | **Accumulated total <br> 2021–2025** | **Accumulated total <br> 2021–2025** |
|  | **Amounts** | **%** | **Amounts** | **%** | **Amounts** | **%** |
| Albania | 10000 | 0.22 | **–** | **–** | 112000 | 0.52 |
| Andorra | **–** | **–** | **–** | **–** | 8000 | 0.04 |
| Belgium | 110000 | 2.46 | 15000 | 0.33 | 764000 | 3.55 |
| Bosnia and Herzegovina | 15000 | 0.34 | 21500 | 0.47 | 44500 | 0.21 |
| Bulgaria | **–** | **–** | 253000 | 5.56 | 428000 | 1.99 |
| Croatia | **–** | **–** | 250000 | 5.50 | 450000 | 2.09 |
| Cyprus | **–** | **–** | 72000 | 1.58 | 185500 | 0.86 |
| Czech Republic | 150000 | 3.35 | **–** | **–** | 674000 | 3.13 |
| Estonia | **–** | **–** | 60000 | 1.32 | 80000 | 0.37 |
| Finland | 250000 | 5.58 | 150000 | 3.30 | 690000 | 3.20 |
| France | 857000 | 19.14 | 290000 | 6.38 | 2092000 | 9.72 |
| Georgia | 8000 | 0.18 | **–** | **–** | 8000 | 0.04 |
| Germany | 350000 | 7.82 | 100000 | 2.20 | 1399700 | 6.50 |
| Greece | 10000 | 0.22 |  |  | 92000 | 0.43 |
| Hungary | 50000 | 1.12 | 200000 | 4.40 | 552000 | 2.56 |
| Iceland | **–** | **–** | 325000 | 7.14 | 345000 | 1.60 |
| Ireland | **–** | **–** | **–** | **–** | 220000 | 1.02 |
| Italy | 310000 | 6.93 | 532000 | 11.69 | 2162600 | 10.04 |
| Kosovo | 20500 | 0.46 | **–** | **–** | 70500 | 0.33 |
| Latvia | **–** | **–** | 40000 | 0.88 | 55000 | 0.26 |
| Lithuania | 130000 | 2.90 | 107500 | 2.36 | 618300 | 2.87 |
| Luxembourg | 5000 | 0.11 | **–** | **–** | 8000 | 0.04 |
| Malta | **–** | **–** | **–** | **–** | 7000 | 0.03 |
| Moldova (Republic of) | 38000 | 0.85 | **–** | **–** | 144000 | 0.67 |
| Montenegro | 93000 | 2.08 | **–** | **–** | 153000 | 0.71 |
| Netherlands | 150000 | 3.35 | **–** | **–** | 540000 | 2.51 |
| North Macedonia | 20000 | 0.45 | **–** | **–** | 88000 | 0.41 |
| Poland | 375000 | 8.38 | 365000 | 8.02 | 2105556 | 9.78 |
| Portugal | **–** | **–** | **–** | **–** | 188700 | 0.88 |
| Romania | 284000 | 6.34 | 293000 | 6.44 | 994920 | 4.62 |
| Serbia | 250000 | 5.58 | 31000 | 0.68 | 826000 | 3.84 |
| Slovak Republic | 30000 | 0.67 | 70000 | 1.54 | 710000 | 3.30 |
| Slovenia | 50000 | 1.12 | 20000 | 0.44 | 190000 | 0.88 |
| Spain | 481000 | 10.75 | 471000 | 10.35 | 2330000 | 10.82 |
| Sweden | **–** | **–** | **–** | **–** | 182200 | 0.85 |
| Türkiye | 280000 | 6.25 | 580000 | 12.75 | 1460000 | 6.78 |
| Ukraine | 150000 | 3.35 | 303000 | 6.66 | 553000 | 2.57 |
| **TOTAL** | **4476500** | **100.00** | **4549000** | **100.00** | **21531475** | **100.00** |

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(1) Amounts at the time of project approval.

(2) Percentages may not add up due to rounding.

Loans Disbursed<sup>(1)</sup>

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | | | | in thousands of euros | in thousands of euros |
| **Country** | **2025** | **2025** | **2024** | **2024** | **Accumulated total <br> 2021–2025** | **Accumulated total <br> 2021–2025** |
|  | **Amounts** | **%** | **Amounts** | **%** | **Amounts** | **%** |
| Albania | 2500 | 0.07 | **–** | **–** | 72980 | 0.40 |
| Andorra | **–** | **–** | **–** | **–** | 7600 | 0.04 |
| Belgium | 326000 | 9.50 | **–** |  | 585000 | 3.21 |
| Bosnia and Herzegovina | 11500 | 0.33 | 4000 | 0.11 | 49753 | 0.27 |
| Bulgaria | 101000 | 2.94 | 53000 | 1.49 | 154000 | 0.84 |
| Croatia | **–** | **–** | 140000 | 3.94 | 503080 | 2.76 |
| Cyprus | 35600 | 1.04 | 36750 | 1.03 | 122149 | 0.67 |
| Czech Republic | 42164 | 1.23 | 111884 | 3.15 | 508601 | 2.79 |
| Estonia | **–** | **–** | 20000 | 0.56 | 220000 | 1.21 |
| Finland | 35000 | 1.02 | 190000 | 5.34 | 480300 | 2.63 |
| France | 228500 | 6.66 | 208830 | 5.87 | 1406948 | 7.71 |
| Georgia | 3964 | 0.12 |  |  | 30272 | 0.17 |
| Germany | 355000 | 10.34 | 349000 | 9.81 | 1450950 | 7.95 |
| Greece |  |  |  |  | 62000 | 0.34 |
| Hungary | 125000 | 3.64 | 75000 | 2.11 | 541497 | 2.97 |
| Iceland | 56500 | 1.65 | 16000 | 0.45 | 84500 | 0.46 |
| Ireland | 55500 | 1.62 | 50000 | 1.41 | 300564 | 1.65 |
| Italy | 155371 | 4.53 | 588533 | 16.55 | 1710742 | 9.37 |
| Kosovo |  |  |  |  | 28041 | 0.15 |
| Latvia | 20500 | 0.60 | 1000 | 0.03 | 27900 | 0.15 |
| Lithuania | 36000 | 1.05 | 125913 | 3.54 | 792500 | 4.34 |
| Luxembourg | 400 | 0.01 | 1500 | 0.04 | 3000 | 0.02 |
| Malta |  |  |  |  | 29000 | 0.16 |
| Moldova (Republic of) | 848 | 0.02 | 281 | 0.01 | 54840 | 0.30 |
| Montenegro | 8500 | 0.25 |  |  | 59536 | 0.33 |
| Netherlands | **–** | **–** | 150000 | 4.22 | 425083 | 2.33 |
| North Macedonia | 5900 | 0.17 | 400 | 0.01 | 23016 | 0.13 |
| Poland | 450118 | 13.11 | 423013 | 11.90 | 2382826 | 13.05 |
| Portugal | 1000 | 0.03 | 6000 | 0.17 | 61700 | 0.34 |
| Romania | 147392 | 4.29 | 141380 | 3.98 | 518000 | 2.84 |
| San Marino | **–** |  | **–** |  | 3000 | 0.02 |
| Serbia | 136800 | 3.99 | 215000 | 6.05 | 925989 | 5.07 |
| Slovak Republic | 242000 | 7.05 | 28700 | 0.81 | 507500 | 2.78 |
| Slovenia | 10000 | 0.29 | 10000 | 0.28 | 140000 | 0.77 |
| Spain | 269700 | 7.86 | 300000 | 8.44 | 2181486 | 11.95 |
| Sweden | 22715 | 0.66 | 46901 | 1.32 | 413122 | 2.26 |
| Türkiye | 203000 | 5.91 | 147000 | 4.13 | 925000 | 5.07 |
| Ukraine | 344371 | 10.03 | 115801 | 3.26 | 460172 | 2.52 |
| **TOTAL** | **3432844** | **100.00** | **3555885** | **100.00** | **18252648** | **100.00** |

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(1) Values in euros are at the exchange rate at the date of transaction.

NB: Information regarding amounts disbursed reflects the location of the registered office of the borrower and not that of the ultimate beneficiary, who may be based in another country. Consequently, the figures provide information on the risk profile of the Bank's borrowers and not that of the ultimate beneficiaries of its lending operations.

**FINANCIAL REVIEW**

The following discussion should be read in conjunction with the CEB's audited financial statements and notes thereto included in Exhibit 2 to the CEB 2025 Annual Report on Form 18-K.

**Overview**

As a development bank with a social vocation, the CEB does not operate with the objective of maximizing profit. The Bank makes every effort to obtain funds in the international capital markets on the best possible terms and to pass these advantages on to beneficiaries minus an intermediation margin to cover the Bank's risk and general operating expenses. The CEB's net banking income essentially derives from interest margin (see "Results of Operations" below). The Bank's policy is to allocate substantially all of its profits towards general reserves, which may then be used to support increased lending activity.

In 2025, geopolitical tensions continued to be elevated as the war in Ukraine and conflicts in the Middle East continued, exerting pressure on trade and supply chains across Europe and the world. In addition, global trade tensions (including as a result of the U.S. government's trade policies), together with low productivity growth and stretched public budgets, continued to cast a shadow over Europe's economy in 2025. In this context, the CEB's social mandate proved not only relevant but urgent. In 2025, all of the Bank's projects reflected the areas of action laid out in its Strategic Framework 2023-2027 and were in line with the political and social aims of the Council of Europe.

The CEB's lending activity encountered a strong demand for financing. The quality of the loan portfolio remained robust and showed high levels of both approvals and disbursements in 2025. As of December 31, 2025, the Bank's outstanding loans (excluding accrued interest and IFRS fair value adjustments) amounted to €23.6 billion, compared to €22.9 billion as of December 31, 2024. Outstanding debt, including interest payable and IFRS fair value adjustments, used to support these operations amounted to €31.4 billion as of December 31, 2025, compared to €30.9 billion as of December 31, 2024. In 2025, the CEB did not record any non-performing loans and therefore did not realize any associated losses.

The Bank's net profit in 2025 amounted to €122.3 million compared to €124.3 million in 2024, with 2025 profits decreasing by 1.7% compared to 2024. This decrease was primarily due to a decline in core earnings by €3.4 million, and a negative valuation impact of €13.6 million from financial instruments measured at fair value through profit and loss, which were partially offset by a positive cost of risk variation of €15.0 million. Core earnings, excluding IFRS 9 valuation impacts, and cost of risk, amounted to €129.9 million for the year 2025, compared to €133.4 million in 2024, representing a decrease of 2.6%. This decrease was mainly attributable to an increase of 7.3% in general operating expenses, which was partially offset by an increase of 1.1% in the net interest margin. General reserves increased by 3.9% to €2.99 billion as of December 31, 2025 from €2.88 billion as of December 31, 2024, as a result of a partial 2024 profit allocation of €112.3 million. Total equity rose by 3.3% to €4.87 billion as of December 31, 2025 compared to €4.72 billion as of December 31, 2024.

The adjusted<sup>1</sup> cost-to-income ratio<sup>2</sup> amounted to 35.1% for the year ended December 31, 2025, compared to 32.6% for the year ended December 31, 2024.

**Results of Operations**

Interest and similar income

Interest and similar income, which aggregates the net interest received from assets and liabilities, decreased by €0.4 billion to €1.0 billion in 2025 compared to €1.4 billion in 2024, mainly due to lower average euro interest rates through the year.

<sup>1</sup> Excluding change in fair value of derivative instruments and netting cost recovery for fiduciary activities – recorded under 'other income' – against administrative expenses.

<sup>2</sup> General operating expenses including depreciation and amortization charges of fixed assets divided by net banking income excluding unrealized gains and losses.

Interest expenses and similar charges

Interest expenses and similar charges, which aggregates the net interest paid on assets and liabilities, decreased by €0.4 billion to €0.8 billion in 2025 from €1.2 billion in 2024, also mainly due to lower average euro interest rates.

Interest margin

Interest margin amounted to €202.2 million in 2025 compared to €200.0 million in 2024, representing an increase of €2.2 million (1.1%).

Net banking income

Net banking income decreased by €12.2 million (6.2%) to €186.6 million in 2025 from €198.8 million in 2024, mainly due to the negative variation of financial instruments valuation.

General operating expenses

General operating expenses increased by €4.2 million (7.3%) to €62.7 million in 2025 compared to €58.5 million in 2024, mainly due to an increase in employee remuneration and other operating expenses.

IFRS 9-related cost of risk and valuation of financial instruments

In accordance with the principles of IFRS 9 concerning hedge accounting (fair value of derivatives) and cost of risk (expected credit loss), the CEB recorded:

- negative changes in the fair value of derivatives of €13.6 million in 2025 and €40 thousand in 2024;

- a write back of impairment charges of €6.0 million in 2025, while it recorded an impairment charge of €9.0 million in 2024.

Core earnings and net profit

Core earnings (net income excluding IFRS-related cost of risk and valuation of financial instruments, without economic or financial significance for the CEB) amounted to €129.9 million in 2025 compared to €133.4 million in 2024, representing a decrease of 2.6%.

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| | | |
|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** |
|  | **2025** | **2024** |
|  | **(in millions of euros)** | **(in millions of euros)** |
| **Net Profit** | **122.3** | **124.3** |
| Elimination of IFRS 9 valuation items, without economic or financial significance for CEB: |  |  |
| - Change in fair value of derivative instruments | 13.6 | 0.0 |
| - Cost of risk (expected credit loss) | (6.0) | 9.0 |
| **CORE EARNINGS** | **129.9** | **133.4** |

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For a discussion of net profit and the adjusted cost-to-income ratio, see "Overview" above.

**Balance Sheet**

Overview**<sup>3</sup>**

As of December 31, 2025, total assets amounted to €39,038 million, compared to €38,613 million as of December 31, 2024, which represents an increase of 1.1%. This increase was primarily due to an increase of financial assets at amortized cost which was partially offset by the negative variation of financial instruments valuation. Treasury assets reached €10,588 million at year-end 2025 compared to €10,773 million at year-end

<sup>3</sup> Values in euros are at the exchange rate as of December 31, 2025.

2024, a decrease of 1.7%. Debt securities at amortized cost amounted to €2,927 million at year-end 2025 compared to €2,338 million at year-end 2024, an increase of 25.2%, mainly due to the investment of paid-in capital received.

As of December 31, 2025, total liabilities amounted to €34,164 million compared to €33,894 million as of December 31, 2024, which represents an increase of 0.8%. Borrowings and debt securities in issue (including accruals) increased by 1.6% to €31,371 million at year-end 2025 from €30,873 million at year-end 2024. New issuances in 2025 amounted to €5,610 million compared to €6,331 million in 2024, while reimbursements in 2025 amounted to €4,312 million compared to €4,267 million in 2024. Other liabilities decreased by 48.0% to €426 million at year-end 2025 from €819 million at year-end 2024, mainly due to a decrease of 48.7% in deposits of guarantees received. Provisions for risk and charges decreased by 6.9% falling to €313 million as of December 31, 2025 from €336 million as of December 31, 2024. This decline was mainly driven by lower pension scheme provisions due to a higher actuarial discount rate as of December 31, 2025.

Total equity, including net profit for 2024 after allocations made to the Ukraine Solidarity Fund and the SIA (in an amount of €5 million and €7 million, respectively), amounted to €4,874 million at year-end 2025, an increase of 3.3% compared to €4,719 million at year-end 2024. This increase reflects the 2025 net profit of €122.3 million, the allocation of the 2024 net profit to the Social Impact Account and to the Ukraine Solidarity Fund, as well as the negative impact of gains and losses recognized directly in equity.

Finally, the balance sheet showed a negative variation in derivative instruments (financial instruments at fair value through profit or loss and hedging derivative financial instruments) of €411 million, i.e., a decrease of 19.6%, on the assets side, and a positive variation of €217 million, i.e., an increase of 12.6%, on the liabilities side, respectively, at year-end 2025. These items represent the fair value, either positive (assets) or negative (liabilities), of the derivative instruments (currency exchange and interest-rate contracts) used for hedging purposes on loans, financial assets at fair value through equity and debt securities in issue.

Treasury Portfolios

The Bank's balance sheet assets include four treasury portfolios, including one monetary portfolio and three securities portfolios:

The Treasury Monetary Portfolio consists of short-term placements with maturities of up to one year. The strategic objective of this portfolio is to manage day-to-day cash flows in all required currencies. Short-term placements with maturities of up to three months must have a minimum rating of BBB+ at the time of purchase. Short-term placements with maturities up to one year must have at least an A- rating at the time of purchase. As of December 31, 2025, the total value of short-term placements in this portfolio amounted to €7,544 million.

The Short-Term Liquidity Portfolio consists of short-term securities with maturities of up to one year. These securities represent an alternative to bank deposits and complement the Treasury Monetary Portfolio in strengthening the Bank's short-term liquidity position. At the time of purchase, short-term sovereign bonds with maturities of up to three months must have a minimum BBB rating, and short-term securities with maturities up to one year must have a minimum A- rating. As of December 31, 2025, the total value of short-term securities in this portfolio amounted to €1,021 million.

The Fair-Value through Equity Portfolio consists of securities investments with maturities from one year up to 15 years. The strategic objective of this portfolio is to strengthen the Bank's liquidity position, while achieving a satisfactory return. Medium-Term Securities must have a minimum rating of A+ at the time of purchase. As of December 31, 2025, the total value of securities in this portfolio amounted to €1,998 million.

The Amortised Cost Portfolio consists of securities with maturities from one year up to 30 years. Securities in this portfolio are primarily intended to provide a stable contribution to the Bank's interest income. They are required to have a minimum rating of A+ at the time of purchase. As of December 31, 2025, the total value of securities in this portfolio amounted to €3,059 million.

For more information on the breakdown of the securities portfolios by, maturity, rating, country and credit rating (of the counterparty), see Note B ("Risk Management—Credit Risk—Finance Directorate Activity—Securities Portfolios") to the CEB's financial statements for the fiscal year ended December 31, 2025, included in Exhibit 2 to the CEB 2025 Annual Report on Form 18-K.

Funding

Subject to an annual borrowing authorization granted by the Administrative Council, the CEB issues debt in the international capital markets, and the level of the CEB's debt securities in issue may fluctuate accordingly. For the year 2025, the annual borrowing authorization set by the Administrative Council for issuances with a maturity of at least one year amounted to €7.5 billion.

In 2025, the Bank borrowed a total of €5.88 billion in 18 financing operations with maturities of one year or more, representing 78.4% of the Bank's annual borrowing authorization. This amount is lower than the volume of funding in 2024, which stood at €6.23 billion and consisted of 17 funding operations. The 2025 funding program was characterized by a high Social Inclusion Bond issuance volume, with more than €2.6 billion issued, which represented more than 40% of the Bank's total borrowings in 2025, similar to in 2024. This brought the total of Social Inclusion Bonds issued to more than €13.5 billion since the establishment of the Social Inclusion Bond Framework in 2017.

The 2025 funding program fulfilled three main objectives: (i) to cover the requirements arising from the Bank's lending operations, (ii) to enable the Bank to honor its debt maturities and (iii) to enable the Bank to maintain its liquidity at the level set by its governing bodies.

In an effort to ensure the necessary funding to finance its activities, the Bank continues to combine benchmark transactions in major currencies that target a broad range of institutional investors with smaller debt issuances in a given currency or with a structure designed to meet specific investor demands.<sup>4</sup>

In 2025, 39.6% of the funds raised by the CEB were denominated in U.S. dollars, 36.1% in euros, 7% in offshore CNY, 6.2% in GBP, 5.7% in AUD and 5.4% in HKD. These transactions allowed the Bank to diversify the markets in which its activities are financed and to broaden its investor base.

The CEB issued an inaugural GBP 300 million three-year Social Inclusion Bond benchmark line in January 2025 and extended its Social Inclusion Bond AUD curve with a new AUD 550 million five-year Social Inclusion Bond benchmark in February 2025. Overall, five transactions were priced in EUR, including a EUR 1.0 billion seven-year Social Inclusion Bond benchmark in March 2025 and a EUR 1.0 billion ten-year benchmark in June 2025. In addition, a USD 1.5 billion five-year benchmark was issued in January 2025, and a USD 1.0 billion three-year Social Inclusion Bond benchmark was priced in May 2025.

As a result, EUR and USD accounted for 75.8% of the total funding volume in 2025, down from 88.7% in 2024.

After taking swaps into account, the total amount of funds borrowed was denominated in euros.

The average maturity of the issuances launched under the borrowing authorization for 2025 was 5.44 years. The table below shows funds raised in their original currencies:

Funding in 2025 (with Maturities Greater than One Year)

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| | | | | |
|:---|:---|:---|:---|:---|
| **Settlement Date** | **Maturity Date** | **Currency** | **Term in Years** | **Nominal Amount<br> (in millions)** |
| **Settlement Date** | **Maturity Date** | **Currency** | **Term in Years** | **Nominal Amount<br> (in millions)** |
| 09/01/2025 | 09/01/2028 | GBP | 3 | 300 |
| 14/01/2025 | 14/01/2027 | CNY | 2 | 2200 |
| 15/01/2025 | 15/01/2030 | USD | 5 | 1500 |
| 16/01/2025 | 21/01/2030 | EUR | 5 | 50 |
| 20/01/2025 | 13/04/2029 | EUR | 4 | 50 |
| 20/01/2025 | 24/01/2028 | EUR | 3 | 25 |
| 04/03/2025 | 24/05/2030 | AUD | 5 | 550 |

---

<sup>4</sup> Benchmarks refer to large issuances: in the EUR or USD markets benchmarks usually amount to 1 billion or more; in the GBP market, transactions with a volume of GBP 250 million or more are considered benchmarks.

---

| | | | | |
|:---|:---|:---|:---|:---|
| <br> **Settlement Date** | <br> **Maturity Date** | <br> **Currency** | <br> **Term in Years** | **Nominal Amount<br> (in millions)** |
| <br> **Settlement Date** | <br> **Maturity Date** | <br> **Currency** | <br> **Term in Years** | **Nominal Amount<br> (in millions)** |

---

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| | | | | |
|:---|:---|:---|:---|:---|
| 25/03/2025 | 25/03/2032 | EUR | 7 | 1000 |
| 26/03/2025 | 26/03/2027 | HKD | 2 | 400 |
| 29/04/2025 | 29/04/2028 | CNY | 3 | 1000 |
| 08/05/2025 | 08/05/2028 | USD | 3 | 1000 |
| 22/05/2025 | 22/05/2029 | HKD | 4 | 250 |
| 19/06/2025 | 19/06/2035 | EUR | 10 | 1000 |
| 16/10/2025 | 16/04/2028 | HKD | 3 | 500 |
| 20/10/2025 | 20/10/2028 | HKD | 3 | 500 |
| 18/11/2025 | 18/11/2027 | HKD | 2 | 300 |
| 19/11/2025 | 19/11/2027 | HKD | 2 | 400 |
| 24/11/2025 | 24/02/2028 | HKD | 3 | 500 |

---

In 2025, 65.2% of the issuances carried out under the CEB's borrowing program had maturities of close to five years or more, compared to 74.4% in 2024.

As of December 31, 2025, the outstanding debt represented by bonds, excluding interest payable and valuation adjustments, amounted to €31.6 billion, up from €31.4 billion as of December 31, 2024. In 2025, as in 2024, the Bank did not repurchase any of its long-term debt and also did not make any early repayments.

The breakdown of debt by maturity is as shown in the chart below:

****<br> ![](image_001.jpg)

Financing commitments and stock of projects awaiting financing

In connection with its lending activities, the Bank enters into project financing commitments for loans to be disbursed in the future.

Financing commitments consist of amounts which remain to be disbursed for projects with respect to which a framework loan agreement has been signed. Stock of projects awaiting financing consists of financing commitments plus any amounts in respect of projects that have been approved but for which the Bank has yet to enter into a financial commitment. For additional information on financing commitments, see Note B ("Risk Management—Credit Risk—Stock of projects and financing commitments") and Note S ("Financing commitments given or received") to the CEB's financial statements for the fiscal year ended December 31, 2025, included in Exhibit 2 to the CEB 2025 Annual Report on Form 18-K.

The total stock of projects awaiting financing as of December 31, 2025 amounted to €9.4 billion, representing a 1.8% increase compared to €9.2 billion as of December 31, 2024. In 2025, the CEB approved new loans for social projects worth €4.5 billion, which was in line with the activity targets set in its Strategic Framework 2023-2027. Loan disbursements totaled €3.4 billion in 2025, down 3.3% from €3.6 billion disbursed in 2024. The volume of outstanding loans (in nominal terms) reached €23.6 billion by the end of 2025, reflecting an increase of 2.8% compared to €22.9 billion of loans outstanding recorded at year-end 2024.

The stock of projects awaiting financing for Target Group Countries represented €4.8 billion, or 51.5%, of the total stock of projects awaiting financing as of December 31, 2025.

The table below presents information on the CEB's stock of projects awaiting financing and financial commitments financing commitments) at year-end 2025 and 2024.

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| | | |
|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** |
|  | **2025** | **2024** |
|  | ***(in millions of euros)*** | ***(in millions of euros)*** |
| Stock of projects awaiting financing | 9387 | 9221 |
| &nbsp;&nbsp;&nbsp;of which financing commitments | 6912 | 6609 |
| &nbsp;&nbsp;&nbsp;*of which for Target Group Countries*<sup>(1)</sup> | 4831 | 5156 |

---

(1) Information presented reflects the location of the registered office of the borrower and not that
 of the ultimate beneficiary, who may be based in another country.

**Risk Management**

The CEB maintains risk management procedures designed to limit its exposure to credit risk, market risk, liquidity risk and operational risk, and to ensure its long-term financial sustainability and operational resilience while enabling it to fulfill its social mandate. The CEB has also established a set of prudential ratios to assess and monitor the risks arising from its activities. For more information, see Note B ("Risk Management") to the CEB's financial statements for the fiscal year ended December 31, 2025, included in Exhibit 2 to the CEB 2025 Annual Report on Form 18-K.

**GOVERNANCE**

The CEB is administered, supervised and managed by a Governing Board, an Administrative Council, a Governor and an Auditing Board.<sup>5</sup>

**Amendments to the Articles in 2025**

Effective as of December 5, 2025, the CEB has amended the Articles to clarify that the Bank may receive trust funds not only from its members, the Bank's own funds or the Council of Europe, but also other international institutions and third parties. Some linguistic adaptations for improving the clarity and readability of certain provisions were also implemented. For the amended Articles, see Exhibit 5 to the CEB 2025 Annual Report on Form 18-K.

**Governing Board**

Powers

The Governing Board is the supreme organ of the Bank and is vested with all powers that have not been delegated to the Administrative Council. The Bank's Articles specify certain functions and powers exercised by the Governing Board, including setting out the general orientations for the Bank's activity and authorizing cooperation agreements with other international organizations, laying down the conditions for Bank membership, deciding capital increases and approving the annual Report of the Governor, the accounts and the Bank's general balance sheet. It elects its own Chairperson and the Chairperson of the Administrative Council and appoints the Governor, the Vice-Governors and the members of the Auditing Board.

The Governing Board is also required to state a position on the recommendations and opinions transmitted to it by the Committee of Ministers and the Parliamentary Assembly of the Council of Europe.

Decision-making

The discussions and decisions of the Governing Board are not valid unless two-thirds of its members are present. Each Member State of the CEB has one vote for each participating certificate held by it. Any Member State that has failed to pay required capital that is past due may not, for as long as such non-payment persists, exercise the voting rights corresponding to the unpaid sum owed.

Decisions are reached by a majority of the Member States voting in favor or against and holding two-thirds of the votes cast. A majority of three-quarters of the Member States voting in favor or against and holding three-quarters of the votes cast is required for assuming, under exceptional circumstances and for a specified period, powers delegated to the Administrative Council. The same majority is required for adjusting the apportionment of ownership not resulting from the admission of new Member States. A unanimous vote is required for suspending or terminating the Bank's operations and amending the Articles, although any change in the stated aims of the Bank expressed in the Articles requires approval of the Committee of Ministers.

Composition

The Governing Board is composed of a Chairperson and one representative appointed by each Member State, which as a general rule is the Member State's ambassador to the Council of Europe in Strasbourg, France.

The Chairperson reports on the Bank's activities to the Parliamentary Assembly of the Council of Europe and to the Committee of Ministers at least once a year and forwards the Annual Report of the Governor to the Committee of Ministers. Each Member State of the Bank is entitled to present a candidate for the Chairpersonship.

<sup>5</sup> The Bank's organs are: the Governing Board, the Administrative Council, the Governor and the Auditing Board. In accordance with Article XIII of the Bank's Articles, the secretariat of the Bank's organs is provided by the Secretariat of the Partial Agreement on the Council of Europe Development Bank in Strasbourg.

The Secretary General of the Council of Europe or his representative is entitled to participate in the meetings of the Governing Board without the right to vote. As a general rule, the Governor or his representative, the Bank's legal adviser and the Secretariat of the organs also participate in meetings.

**Administrative Council**

Powers

The Administrative Council possesses all those powers delegated to it by the Governing Board under the Articles, although the Governing Board may reassume such powers from the Administrative Council in exceptional circumstances for a specified period. Among other functions, the Administrative Council establishes and supervises operational policies, approves loan projects and votes on the Bank's operating budget. The Administrative Council may at any time appoint committees from among its members and delegate specified powers to such committees.

Decision-making

Decisions of the Administrative Council are only valid if two-thirds of its Member States' representatives are present. Each Member State possesses one vote for each participating certificate held by it. Most decisions of the Administrative Council are taken by a vote with simple majority of the votes cast, although some require a majority of the Member States (not counting those Member States which abstain from voting) and a majority of the votes cast. These include decisions on proposals and opinions addressed to the Governing Board concerning (i) adjustments to the Bank's capital and its apportionment, increases or reductions in the authorized capital; (ii) the suspension or termination of the Bank's operations and, in the event of liquidation, distribution of its assets; (iii) the appointment of the members of the Auditing Board; and (iv) the appointment of the external auditor and establishment of its terms of reference. In addition, the Administrative Council takes, by simple majority of the Member States and a majority of two-thirds of the votes cast, decisions regarding investment projects that have not received an opinion as to admissibility.

Composition

The Administrative Council is composed of a Chairperson appointed by the Governing Board for a three-year term and one representative appointed by each Member State, as a general rule from the ministry of finance of the Member State. Its Chairperson is elected by the Governing Board. The term of office of the Chairperson is three years and is renewable for a second three-year term. The Chairperson does not have the right to vote.

The Secretary General of the Council of Europe may participate in or be represented at the meetings. As a general rule, the Governor or his representative, the Bank's legal adviser and the Secretariat of the organs also participate in meetings. The Administrative Council may, when it deems necessary, invite representatives of international organizations or any other interested person to participate in its proceedings, but such invitees do not have the right to vote.

**Current Membership of the Governing Board and the Administrative Council**

The following are the representatives to the Governing Board and Administrative Council of the CEB as of March 24, 2026.

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| | | |
|:---|:---|:---|
| **GOVERNING BOARD**  |  | &nbsp;&nbsp;**ADMINISTRATIVE COUNCIL** |
|  | <u>**<u>Chairpersons</u>**</u> |  |
| **Harry Alex RUSZ**<br> Ambassador Extraordinary and Plenipotentiary, Permanent Representative of Hungary to the Council of Europe, Strasbourg |  | **Wioletta BARWICKA-LOFTHOUSE** <br> Former Executive Board Director (for Poland, Bulgaria and Albania) at EBRD, London |

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| | |
|:---|:---|
| **GOVERNING BOARD**  | &nbsp;&nbsp;**ADMINISTRATIVE COUNCIL** |

---

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| | | |
|:---|:---|:---|
|  | <u>**<u>Vice-Chairs</u>**</u> |  |
| **Olga ALGAYEROVÁ**<br> Ambassador Extraordinary and Plenipotentiary, Permanent Representative of the Slovak Republic to the Council of Europe, Strasbourg |  | **José Vicente PÉREZ LÓPEZ**<br> Deputy Director General for Multilateral Financial Institutions, General Secretariat of the Treasury and International Finance, Ministry of Economy, Trade and Business, Madrid<br>|
|  | <u>**<u>Albania</u>**</u> |  |
| **Dastid KORESHI**<br> Ambassador Extraordinary and Plenipotentiary, Permanent Representative of Albania to the Council of Europe, Strasbourg<br>|  | **Endrit YZAIRAJ**<br> Deputy Minister, Ministry of Finance, Tirana |
|  | <u>**<u>Andorra</u>**</u> |  |
| **Andreu JORDI TOMÀS**<br> Ambassador Extraordinary and Plenipotentiary, Permanent Representative of Andorra to the Council of Europe, Strasbourg<br>|  | **Lorena JORDANA CARMONA**<br> State Secretary for International Financial Matters, Ministry of Finance, Andorra La Vella |
|  | <u>**<u>Belgium</u>**</u> |  |
| **Delphine DELIEUX**<br> Ambassador Extraordinary and Plenipotentiary, Permanent Representative of Belgium to the Council of Europe, Strasbourg |  | **Philippe NIZEYIMANA**<br> Advisor, International and European Financial Affairs, Federal Public Service Finance - Treasury, Brussels<br>|
| <u>**<u>Bosnia and Herzegovina</u>**</u> | <u>**<u>Bosnia and Herzegovina</u>**</u> | <u>**<u>Bosnia and Herzegovina</u>**</u> |
| **Haris BAŠIĆ**<br> Ambassador Extraordinary and Plenipotentiary, Permanent Representative of Bosnia and Herzegovina to the Council of Europe, Strasbourg <br>|  | **Dejan MIKEREVIĆ**<br> Full Professor, Faculty of Economics of the University of Banja Luka, Banja Luka<br>|
|  | <u>**<u>Bulgaria</u>**</u> |  |
| **Genka GEORGIEVA**<br> Ambassador, Permanent Representative of Bulgaria to the Council of Europe, Strasbourg |  | **Gergana BEREMSKA**<br> Director, Directorate of International Financial Institutions and Cooperation, Ministry of Finance, Sofia<br>|
|  | <u>**<u>Croatia</u>**</u> |  |
| **Toma GALLI**<br> Ambassador Extraordinary and Plenipotentiary**,** Permanent Representative of Croatia to the Council of Europe, Strasbourg<br>|  | **Stipe ŽUPAN**<br> State Secretary, Ministry of Finance, Zagreb<br>|
|  | <u>**<u>Cyprus</u>**</u> |  |
| **George S. YIANGOU**<br> Ambassador Extraordinary and Plenipotentiary, Permanent Representative of Cyprus to the Council of Europe, Strasbourg |  | **Avgi CHRYSOSTOMOU-LAPATHIOTIS**<br>Director, Financial Services Directorate, Ministry of Finance, Nicosia<br>|
|  | <u>**<u>Czech Republic</u>**</u> |  |
| **Kristýna NAJMANOVÁ**<br> Ambassador, Permanent Representative of the Czech Republic to the Council of Europe, Strasbourg |  | **Petr PAVELEK**<br> Department Director, Debt and Financial Assets Management Department, Ministry of Finance, Prague<br>|

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| | |
|:---|:---|
| **GOVERNING BOARD**  | &nbsp;&nbsp;**ADMINISTRATIVE COUNCIL** |

---

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| | | |
|:---|:---|:---|
|  | <u>**<u>Denmark</u>**</u> |  |
| **Michael Aastrup JENSEN**<br> Ambassador Extraordinary and Plenipotentiary, Permanent Representative of Denmark to the Council of Europe, Strasbourg<br>|  | **Steen Ryd LARSEN**<br> Advisor, Ministry of Finance, Copenhagen<br>|
|  | <u>**<u>Estonia</u>**</u> |  |
| **Aino LEPPIK VON WIRÉN**<br> Ambassador Extraordinary and Plenipotentiary, Permanent Representative of Estonia to the Council of Europe, Strasbourg  |  | **Laura TOOMLAID-PALS**<br> Adviser, EU and International Relations Department, Ministry of Finance, Tallinn<br>|
|  | <u>**<u>Finland</u>**</u> |  |
| **Sini PAUKKUNEN-MYKKÄNEN**<br> Ambassador Extraordinary and Plenipotentiary, Permanent Representative of Finland to the Council of Europe, Strasbourg<br>|  | **Jouni SINIVUORI**<br> Financial Counsellor, International Financial Affairs, Ministry of Finance, Helsinki |
|  | <u>**<u>France</u>**</u> |  |
| **Pap NDIAYE**<br> Ambassador, Permanent Representative of France to the Council of Europe, Strasbourg<br>|  | **Pierre-Marie VOEGELI**<br> Head of the Bilateral European relations and EU financial instruments - EUROPE 3, Treasury Department, Ministry of the Economy, Finance and Industrial and Digital Sovereignty, Paris |
|  | <u>**<u>Georgia</u>**</u> |  |
| **Khatia TSILOSANI**<br> Ambassador Extraordinary and Plenipotentiary, Permanent Representative of Georgia to the Council of Europe, Strasbourg<br>|  | **Ekaterine GUNTSADZE**<br> Deputy Minister, Ministry of Finance, Tbilisi |
|  | <u>**<u>Germany</u>**</u> |  |
| **Heike THIELE**<br> Ambassador Extraordinary and Plenipotentiary, Permanent Representative of Germany to the Council of Europe, Strasbourg |  | **Markus HÖRMANN**<br> Head of Division (VII D 2), Ministry of Finance, Berlin |
|  | <u>**<u>Greece</u>**</u> |  |
| **Nicolas SIGALAS**<br> Ambassador Extraordinary and Plenipotentiary, Permanent Representative of Greece to the Council of Europe, Strasbourg |  | **Angelos VOURVACHIS**<br> Head of Independent Department for International Financial Institutions & Development Banks, Ministry of Economy & Finance, Athens |
|  | <u>**<u>Holy See</u>**</u> |  |
| **Marco GANCI**<br> Special Envoy and Permanent Observer of the Holy See to the Council of Europe, Strasbourg |  | **Marco GANCI**<br> Special Envoy and Permanent Observer of the Holy See to the Council of Europe, Strasbourg |
|  | <u>**<u>Hungary</u>**</u> |  |
| ***Pending nomination*** |  | **Márton BÓKAY**<br> Deputy State Secretary, Ministry for National Economy, Budapest<br>|
|  | <u>**<u>Iceland</u>**</u> |  |
| **Gréta GUNNARSDÓTTIR**<br> Ambassador Extraordinary and Plenipotentiary, Permanent Representative of Iceland to the Council of Europe, Strasbourg |  | **Elín FLYGENRING**<br> Ambassador for Human rights, Directorate for International Affairs and Policy, Ministry for Foreign Affairs, Reykjavík<br>|

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| | |
|:---|:---|
| **GOVERNING BOARD**  | &nbsp;&nbsp;**ADMINISTRATIVE COUNCIL** |

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| | | |
|:---|:---|:---|
|  | <u>**<u>Ireland</u>**</u> |  |
| **Caitríona DOYLE**<br> Ambassador Extraordinary and Plenipotentiary, Permanent Representative of Ireland to the Council of Europe, Strasbourg<br>|  | **Leonard WALL**<br> International Financial Division, Department of Finance, Dublin |
|  | <u>**<u>Italy</u>**</u> |  |
| **Roberto MARTINI**<br> Ambassador, Permanent Representative of Italy to the Council of Europe, Strasbourg |  | **Manuela NENNA**<br> Director General, International Financial Relations Directorate, Department of the Treasury, Ministry of Economy and Finance, Rome |
|  | <u>**<u>Kosovo</u>**</u> |  |
| **Lulzim HISENI**<br> Consul General, Consulate General of Kosovo, Strasbourg<br>|  | **Dije RIZVANOLLI**<br> Acting Head of Division, International Financial Cooperation, Ministry of Finance, Pristina |
|  | <u>**<u>Latvia</u>**</u> |  |
| **Agnese VILDE**<br> Ambassador Extraordinary and Plenipotentiary, Permanent Representative of Latvia to the Council of Europe, Strasbourg |  | **Liene VĪTOLA**<br> Head of International Financial Institutions Division, Financial Market Policy Department, Ministry of Finance, Riga<br>|
|  | <u>**<u>Liechtenstein</u>**</u> |  |
| **Domenik WANGER**<br> Ambassador Extraordinary and Plenipotentiary, Permanent Representative of Liechtenstein to the Council of Europe, Strasbourg |  | **Domenik WANGER**<br> Ambassador Extraordinary and Plenipotentiary, Permanent Representative of Liechtenstein to the Council of Europe, Strasbourg |
|  | <u>**<u>Lithuania</u>**</u> |  |
| **Andrius KRIVAS**<br> Ambassador Extraordinary and Plenipotentiary, Permanent Representative of Lithuania to the Council of Europe, Strasbourg |  | **Darius TRAKELIS**<br> Director, EU and International Affairs Department, Ministry of Finance, Vilnius<br>|
|  | <u>**<u>Luxembourg</u>**</u> |  |
| **Patrick ENGELBERG**<br> Ambassador Extraordinary and Plenipotentiary, Permanent Representative of Luxembourg to the Council of Europe, Strasbourg |  | **Arsène JACOBY**<br> Director, Multilateral Affairs, Development and Compliance, Ministry of Finance, Luxembourg<br>|
|  | <u>**<u>Malta</u>**</u> |  |
| **Francesca CAMILLERI VETTIGER**<br> Ambassador, Permanent Representative of Malta to the Council of Europe, Strasbourg |  | **Joseph FILLETTI**<br> Former Permanent Representative of Malta to the Council of Europe, St. Julian's |
|  | <u>**<u>Republic of Moldova</u>**</u> |  |
| **Daniela CUJBĂ**<br> Ambassador Extraordinary and Plenipotentiary, Permanent Representative of the Republic of Moldova to the Council of Europe, Strasbourg |  | **Ion GUMENE**<br> State Secretary, Ministry of Finance, Chişinău |
|  | <u>**<u>Montenegro</u>**</u> |  |
| **Božidarka KRUNIĆ**<br> Ambassador Extraordinary and Plenipotentiary, Permanent Representative of Montenegro to the Council of Europe, Strasbourg |  | **Milica ADŽIĆ**<br> Acting as State Secretary, Treasury, Debt Management, IPA funds, Ministry of Finance, Podgorica, Ministry of Finance, Podgorica<br>|

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| | |
|:---|:---|
| **GOVERNING BOARD**  | &nbsp;&nbsp;**ADMINISTRATIVE COUNCIL** |

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| | | |
|:---|:---|:---|
|  | <u>**<u>Netherlands</u>**</u> |  |
| **Tanja GONGGRIJP**<br> Ambassador Extraordinary and Plenipotentiary, Permanent Representative of the Netherlands to the Council of Europe, Strasbourg |  | **Eva VAN SOERLAND**<br> Policy Officer - Multilateral Development Banks, Multilateral Institutions and Human Rights Department, International Financial Institutions Division, Ministry of Foreign Affairs, The Hague |
|  | <u>**<u>North Macedonia</u>**</u> |  |
| **Svetlana GELEVA**<br> Ambassador Extraordinary and Plenipotentiary, Permanent Representative of North Macedonia to the Council of Europe, Strasbourg |  | **Suzana PENEVA**<br> State Adviser for international finance and harmonization with EU, and decentralized management with EU funds, Ministry of Finance, Skopje |
|  | <u>**<u>Norway</u>**</u> |  |
| **Vebjørn HEINES**<br> Ambassador Extraordinary and Plenipotentiary, Permanent Representative of Norway to the Council of Europe, Strasbourg |  | **Anne Kristin HERMANSEN**<br> Senior Adviser, Section for Multilateral Development Banks, Ministry of Foreign Affairs, Oslo<br>|
|  | <u>**<u>Poland</u>**</u> |  |
| **Aleksander POCIEJ**<br> Chargé d'Affaires a.i., Permanent Representative of Poland to the Council of Europe, Strasbourg<br>|  | **Małgorzata GROTTE**<br> Deputy Director, International Cooperation Department, Ministry of Finance, Warsaw |
|  | <u>**<u>Portugal</u>**</u> |  |
| **António Vasco ALVES MACHADO**<br> Ambassador Extraordinary and Plenipotentiary, Permanent Representative of Portugal to the Council of Europe, Strasbourg |  | **José AZEVEDO PEREIRA**<br> Director General, Office for Economic Policy and International Affairs, Ministry of Finance, Lisbon<br>|
|  | <u>**<u>Romania</u>**</u> |  |
| **Ion JINGA**<br> Ambassador Extraordinary and Plenipotentiary, Permanent Representative of Romania to the Council of Europe, Strasbourg |  | **Boni CUCU**<br> General Director, International Financial Relations General Directorate, Ministry of Public Finance, Bucharest<br>|
|  | <u>**<u>San Marino</u>**</u> |  |
| **Michela BOVI**<br> Ambassador Extraordinary and Plenipotentiary, Permanent Representative of San Marino to the Council of Europe, Strasbourg |  | **Nicola CECCAROLI**<br> Counsellor, Ministry of Finance, San Marino<br>|
|  | <u>**<u>Serbia</u>**</u> |  |
| **Suzana GRUBJEŠIĆ**<br> Ambassador Extraordinary and Plenipotentiary, Permanent Representative of Serbia to the Council of Europe, Strasbourg |  | **Ana TRIPOVIĆ**<br>State Secretary, Ministry of Finance, Belgrade<br>|
|  | <u>**<u>Slovak Republic</u>**</u> |  |
| **Olga ALGAYEROVÁ**<br> Ambassador Extraordinary and Plenipotentiary, Permanent Representative of the Slovak Republic to the Council of Europe, Strasbourg |  | **František PALKO**<br> Advisor, Budget Policy Section, Ministry of Finance, Bratislava |

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| | |
|:---|:---|
| **GOVERNING BOARD**  | &nbsp;&nbsp;**ADMINISTRATIVE COUNCIL** |

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| | | |
|:---|:---|:---|
|  | <u>**<u>Slovenia</u>**</u> |  |
| **Berta MRAK**<br> Ambassador Extraordinary and Plenipotentiary, Permanent Representative of Slovenia to the Council of Europe, Strasbourg |  | **Barbara KNAPIČ NAVARRETE**<br> Financial System Directorate, Ministry of Finance, Ljubljana |
|  | <u>**<u>Spain</u>**</u> |  |
| **Rosa VELÁZQUEZ ÁLVAREZ**<br> Ambassador Extraordinary and Plenipotentiary, Permanent Representative of Spain to the Council of Europe, Strasbourg |  | **José Vicente PÉREZ LÓPEZ**<br> Deputy Director General for Multilateral Financial Institutions, General Secretariat of the Treasury and International Finance, Ministry of Economy, Trade and Business, Madrid |
|  | <u>**<u>Sweden</u>**</u> |  |
| **Niklas KEBBON**<br> Ambassador Extraordinary and Plenipotentiary, Permanent Representative of Sweden to the Council of Europe, Strasbourg |  | **Elin BERGMAN**<br> Deputy Head of Unit, Division for Governance and International Economic Cooperation, International and Economic Affairs Department, Ministry of Finance, Stockholm |
| **Niklas KEBBON**<br> Ambassador Extraordinary and Plenipotentiary, Permanent Representative of Sweden to the Council of Europe, Strasbourg |  |  |
|  | <u>**<u>Switzerland</u>**</u> |  |
| **Muriel BERSET KOHEN**<br> Chargée d'affaires a.i., Head of the Permanent Representation of Switzerland to the Council of Europe, Strasbourg |  | **Ivan PAVLETIC**<br> Head, Multilateral Cooperation, State Secretariat for Economic Affairs, Economic Cooperation and Development, Bern |
|  | <u>**<u>Türkiye</u>**</u> |  |
| **Nurdan BAYRAKTAR GOLDER**<br> Ambassador Extraordinary and Plenipotentiary, Permanent Representative of Türkiye to the Council of Europe, Strasbourg |  | **Kerem DÖNMEZ**<br> Acting Director General for Foreign Economic Relations, Ministry of Treasury and Finance, Ankara |
|  | <u>**<u>Ukraine</u>**</u> |  |
| **Mykola TOCHYTSKYI**<br> Ambassador Extraordinary and Plenipotentiary, Permanent Representative of Ukraine to the Council of Europe, Strasbourg |  | **Olha ZYKOVA**<br> Deputy Minister of Finance, Ministry of Finance, Kyiv |

---

**The Governor**

The Governor of the CEB is the Bank's legal representative and represents the CEB in all of its transactions and legal proceedings. The Governor is the head of the Bank's operational services and is responsible for carrying out the day-to-day business and operating activities of the CEB based on the guidelines and the authorizations of the Administrative Council. He is responsible for the organization of the CEB's operational services and for the Bank's staff within the framework of the regulations adopted by the Administrative Council. He is assisted by one or more Vice-Governors and replaced by one of them if necessary. Pursuant to the Bank's Articles, the Vice-Governors are appointed by the Governing Board based on a proposal from the Governor, following an opinion on conformity from the Administrative Council and after consultation with the members of the Governing Board. The Governor determines the responsibilities of the Vice-Governors taking into account post descriptions approved by the Administrative Council.

The Governor and Vice-Governors are each appointed by the Governing Board for a five-year term (renewable once).

The current Governor and Vice-Governors are the following:

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;**Governor and<br> Vice-Governors** | &nbsp;&nbsp;**Position with CEB** | &nbsp;&nbsp;**Initially Appointed to<br> Position** | &nbsp;&nbsp;**Expiration of Current<br> Term** |
| &nbsp;&nbsp;Carlo Monticelli | &nbsp;&nbsp;Governor | &nbsp;&nbsp;December 18, 2021 | &nbsp;&nbsp;December 17, 2026 |
| &nbsp;&nbsp;Tomáš Boček | &nbsp;&nbsp;Vice-Governor for Target Group Countries | &nbsp;&nbsp;May 1, 2019 | &nbsp;&nbsp;August 15, 2026 |
| &nbsp;&nbsp;Sandrine Gaudin | &nbsp;&nbsp;Vice-Governor Financial Strategy | &nbsp;&nbsp;August 1, 2022 | &nbsp;&nbsp;July 31, 2027 |
| &nbsp;&nbsp;Johannes M. Böhmer | &nbsp;&nbsp;Vice-Governor Social Development Strategy | &nbsp;&nbsp;August 1, 2022 | &nbsp;&nbsp;July 31, 2027 |

---

**Auditing Board**

Powers

The Auditing Board is required by the Articles to inspect the CEB's accounts and verify that the operational accounts and balance sheet are in order, to certify in an annual report that the balance sheet and operational accounts accord with the books and records of the Bank, that they give an accurate and true picture of the state of the CEB's affairs and that the CEB is being managed according to the principles of sound financial management. Its audit is required to be conducted in accordance with generally accepted auditing standards.

The Auditing Board, as an independent supervisory body of the Bank's activities, is entitled, separately from other controlling entities, to examine specific projects financed by the Bank. The audit may take place by review of documentation at the Bank and/or, in exceptional cases, and subject to the agreement of the Governor, by spot visits. The Auditing Board has regular access to reports on internal audit activities, which includes a list of internal audits completed, audits in progress and status reports of audit findings. Moreover, the Auditing Board has full access to or may request for review all internal documents which it deems necessary to examine in order to carry out its duties. The Auditing Board may use external experts in cases where it is faced with a particular problem for which it requires specialized technical expertise that is not available among its members.

The Governor is required to inform the Auditing Board about the tenders for the appointment of the external auditor. Thereupon, the Auditing Board presents its opinion on the choice of the external auditor to the Administrative Council and the Governing Board as well as to the Governor and the Secretariat of the Partial Agreement.

On November 29, 2024, the Governing Board appointed Deloitte & Associés to be the Bank's external auditor for 2025 through 2029.

Composition

The Auditing Board is composed of three members originating from the Member States of the CEB. The Governing Board appoints the members of the Auditing Board, including substitute members, according to a rotation scheme. The Member States are invited to present candidates having significant professional experience in the financial audit field. The term of office of each member is three years and not more than one member is permitted to retire each year. Outgoing members are required to attend the meetings of the Auditing Board as an advisor until the next rotation becomes effective the following year.

The current members of the Auditing Board and their principal professions as of March 24, 2026, are Samir Bakić (Assistant Minister, Debt Management Sector, Federal Ministry of Finance, Sarajevo, Bosnia and Herzegovina), Zoran Živojinović (Senior Adviser, Central Unit for Harmonization, Ministry of Finance, Belgrade, Serbia), and Kathryn Waller (Principal Officer, Finance & Exchequer Units, Procurement, Compliance & Risk Units, Corporate Services Division, Department of Finance, Dublin, Ireland).

**Staff**

Over the years, the CEB has increased its staff numbers in accordance with the development of its activities. At year-end 2025, the Bank had a total of 244 permanent staff members in addition to appointed officials, a slight increase compared to 231 permanent staff members at year-end 2024. Among staff in senior roles, 42% were women and 58% were men. Although women are generally well represented at the Bank, continued efforts are undertaken to improve diversity, particularly through higher representation of women at senior levels and in management positions. The CEB monitors other aspects of diversity, including nationality and age, and recruits actively from all Member States.

## Ex-4

**Exhibit 4**

[Deloitte & Associés Letterhead]

**Consent of independent registered public accounting firm**

We consent to the incorporation by reference in the registration statement (No. 333-240160) under Schedule B of the Securities Act of 1933, as amended, of the Council of Europe Development Bank (the "CEB") of our report (the "Report") dated March 24, 2026 with respect to the financial statements of the CEB referred to therein, which comprise the balance sheet as of December 31, 2025 and the income statement, the statement of comprehensive income, the statement of changes in equity and the statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory notes as set out in notes A to U, which Report appears in Exhibit 2 to the Annual Report on Form 18-K of the CEB for the year ended December 31, 2025.

---

| |
|:---|
| Paris La Défense, March 24, 2026 |
| The Independent Auditor |
| **DELOITTE & ASSOCIÉS** |
| /s/ marjorie blanc lourme |
| Marjorie Blanc Lourme |
| Partner |

---

## Ex-5

Exhibit 5

![](tm269258d1_ex5img002.jpg)

**COUNCIL OF EUROPE**

**DEVELOPMENT BANK**

**ARTICLES OF AGREEMENT**

Edition updated in December 2025

CEB – Articles of Agreement

Article I

**Establishment of the Bank**

A Council of Europe Development Bank (hereinafter called "the Bank") shall be established.

The Bank shall be attached to the Council of Europe and administered under its supreme authority.

Article II<sup>1</sup>

 

**Purpose**

a. The primary purpose of the Bank is to help in solving the social problems with which European countries are or may be faced as a result of the presence of refugees, displaced persons or migrants consequent upon movements of refugees or other forced movements of populations and as a result of the presence of victims of natural or ecological disasters.

The investment projects to which the Bank contributes may be intended either to help such people in the country in which they find themselves or to enable them to return to their countries of origin when the conditions for return are met or, where applicable, to settle in another host country. These projects must be approved by a Member of the Bank.

b. The Bank may also contribute to the realisation of investment projects approved by a Member of the Bank which enable jobs to be created in disadvantaged regions, people in low-income groups to be housed or social infrastructure to be created.

Article III

**Membership of the Bank**

a. Any Member State of the Council of Europe may become a Member of the Bank by addressing a declaration to the Secretary General. This declaration shall contain acceptance of the present Articles of Agreement by the Government of the State concerned and the subscription by that Government of the number of participating certificates fixed in agreement with the Governing Board, in pursuance of Article IX, Section 3, paragraph 1, subparagraph a. of the Articles of Agreement.

b. A European State which is not a member of the Council of Europe may:

&nbsp;&nbsp;&nbsp;&nbsp;i. either be admitted as a Member of the Bank upon such special conditions as the Bank shall lay down in
each case, in accordance with the provisions of Article IX, Section 3. paragraph 1, subparagraph b. A State in respect of which
such a decision on admission has been made shall be able to become a Member of the Bank by depositing with the Secretary General of the
Council of Europe an instrument stating that it accepts the present Articles of Agreement, subscribes the number of participating certificates
fixed in agreement with the Governing Board, has taken the measures necessary to enable it to meet all the obligations resulting from
the Articles of Agreement and has met all the admission conditions laid down by the Governing Board;

&nbsp;&nbsp;&nbsp;&nbsp;ii. or conclude with the Bank an association agreement upon such special conditions as the Bank may lay down
in each case.

c. Upon the conditions laid down by the Governing Board, international institutions with a European focus may also become Members of the Bank or conclude an association agreement.

<sup>1</sup> The text of this Article was adopted by the Committee of Ministers at the 496th meeting of the Ministers' Deputies by Resolution (93) 22.

CEB – Articles of Agreement

d. Any State becoming a Member of the Bank shall confirm, in its declaration or its instrument of acceptance of the Articles of Agreement, its intention:

&nbsp;&nbsp;&nbsp;&nbsp;i. to accede at the earliest opportunity to the Third Protocol to the General Agreement on Privileges and Immunities of the Council of
Europe;

&nbsp;&nbsp;&nbsp;&nbsp;ii. pending such accession, to apply the legal arrangements resulting from the Protocol to the property, assets
and operations of the Bank and to grant to the organs and staff of the Bank the legal status resulting from the Protocol.

Article IV

**Obligations of Members**

Section 1 – *Participating certificates*

The Bank shall issue for subscription by its Members participating certificates, expressed in terms of euros (EUR). Each certificate shall have the same nominal value of EUR 1,000. Members shall pay their subscriptions in euros.

Section 2 – *Apportionment and paying up of participating certificates*

a. The table appended to the present Articles of Agreement lays down the percentage apportionment of the participating certificates offered
for subscription by each Member of the Bank.

b. The number of participating certificates to be held by new Members of the Bank shall be fixed in agreement with the Governing Board
of the Bank, in accordance with Article IX, Section 3. paragraph 1, subparagraphs a. and b. of the present Articles of Agreement.

c. The minimum percentage of subscribed participating certificates to be paid up, and the dates of the relevant payments, shall be fixed
by the Governing Board.

d. When the Bank's capital is increased, the Governing Board shall determine, upon uniform conditions for all Members, the percentage
to be paid up and the corresponding payment dates.

Section 3 – *Limitation of liability*

No Member shall be liable to third parties for any obligation of the Bank.

Article V

**Borrowing operations and contributions**

For uses consistent with its purpose, the Bank may borrow funds. It may also undertake any other financial operation useful for achieving its purpose, under conditions laid down by the Administrative Council.

The Bank may receive contributions offered for specific purposes that fall within its stated objectives.

Article VI

**Investments**

The Bank's liquid assets, capital and reserves may be invested upon conditions to be fixed by the Administrative Council in accordance with the principles of sound financial management.

CEB – Articles of Agreement

Article VII

**The Bank's means of action**

Section 1 – *Loans*

The Bank makes loans in any of the following ways:

a. loans to Members of the Bank;

b. loans guaranteed by a Member of the Bank and granted to any legal person approved by that Member;

c. loans granted to any legal person approved by a Member of the Bank, where the Administrative Council considers that the requested
loan is covered by adequate guarantees.

Section 2 – *Guarantees*

The Bank may grant guarantees to financial institutions approved by a Member for loans aimed at achieving the objectives set out in Article II, under conditions to be fixed by the Administrative Council in each case.

Section 3 – *Trust accounts*

The Bank may open and manage trust accounts for the purpose of receiving voluntary contributions from its Members, the Bank itself, the Council of Europe, other international institutions or third parties.

Section 4 – *Interest subsidy*

Loans may be accompanied by a full or partial interest subsidy.

A portion of the profits realised by the Bank and voluntary contributions from Members shall be used to subsidise the interest rate on certain loans, under conditions fixed by the Administrative Council.

Section 5 – *Conditions for granting loans - Information to be provided*

The Administrative Council shall lay down the general conditions for granting loans and determine what information each borrower is required to provide in support of its application.

Section 6 – *Default*

The Bank's transactions in favour of a Member or of a legal person as referred to in Section 1. above shall be suspended if the borrower – or failing the latter – the guarantor defaults on payments due in respect of loans or guarantees granted to it by the Bank.

Article VIII

**Organisation, administration and supervision of the Bank**

The organisation, administration and supervision of the Bank shall be under the responsibility of the following bodies:

- the Governing Board,

- the Administrative Council,

- the Governor,

- the Auditing Board,

as provided in the following Articles.

CEB – Articles of Agreement

Article IX

**Governing Board**

Section 1

The Governing Board shall consist of a Chairperson and one representative appointed by each Member. Each Member may appoint a substitute. The Secretary General of the Council of Europe may participate in or be represented at the meetings.

Section 2

The Governing Board is the supreme body of the Bank, vested with all powers in respect of the Bank, save the right to change its purposes as stipulated in Article II of the Articles of Agreement.

Section 3

1. The Governing Board shall

&nbsp;&nbsp;&nbsp;&nbsp;a. determine the conditions under which Council of Europe Member States become Members of the Bank;

&nbsp;&nbsp;&nbsp;&nbsp;b. authorise European States that are not members of the Council of Europe and international institutions
with a European focus to become Members of the Bank and lay down the conditions for such authorisation and the number of participating
certificates to be subscribed by those Members;

&nbsp;&nbsp;&nbsp;&nbsp;c. adjust the apportionment of the capital among Members as shown in the table appended to the present Articles
of Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;d. increase or reduce the authorised capital, determine the proportion of the subscribed shares to be paid
up, and fix the dates by which payment must be made;

&nbsp;&nbsp;&nbsp;&nbsp;e. ensure compliance with the aims stated in the Articles of Agreement; approve the Bank's annual report, accounts and other financial
statements; provide general guidelines concerning the institution's activity;

&nbsp;&nbsp;&nbsp;&nbsp;f. suspend or terminate the Bank's operations and, in the event of liquidation, distribute its assets;

&nbsp;&nbsp;&nbsp;&nbsp;g. suspend a Member;

&nbsp;&nbsp;&nbsp;&nbsp;h. amend these Articles of Agreement, without, however, making any change in their stated aims;

&nbsp;&nbsp;&nbsp;&nbsp;i. interpret these Articles of Agreement and rule on any appeals against decisions concerning the interpretation
or application of the Articles of Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;j. authorise the conclusion of general agreements of co-operation with other international organisations;

&nbsp;&nbsp;&nbsp;&nbsp;k. elect the Chairperson of the Governing Board and the Chairperson of the Administrative Council;

CEB – Articles of Agreement

&nbsp;&nbsp;&nbsp;&nbsp;l. appoint the Governor and, as necessary, on a proposal by the Governor, one or more Vice-Governors, one
of whom shall replace the Governor in the latter's absence, dismiss them and accept their resignation;

&nbsp;&nbsp;&nbsp;&nbsp;m. appoint the members of the Auditing Board;

&nbsp;&nbsp;&nbsp;&nbsp;n. appoint the external auditor and lay down its terms of reference;

&nbsp;&nbsp;&nbsp;&nbsp;o. draw up its Rules of Procedure;

&nbsp;&nbsp;&nbsp;&nbsp;p. exercise any other powers expressly assigned to the Governing Board by these Articles of Agreement.

2. The Governing Board shall take its decisions regarding subparaghraphs d. and f. on a proposal by the Administrative Council, and on subparagraphs c., m. and n., after hearing the latter. The Administrative Council shall give its opinion on all other decisions with financial consequences.

3. Any powers not set forth in Section 3, paragraph 1 above shall be delegated to the Administrative Council.

The powers delegated to the Administrative Council under these Articles of Agreement may be reassumed only in exceptional circumstances and for a specified period.

4. The Governing Board shall meet once a year. It may, if necessary, hold additional meetings.

5. The Governing Board may, when necessary, invite representatives of international organisations or any other interested person to participate in its proceedings without the right to vote.

Section 4

a. Decisions of the Governing Board shall be considered valid only if two-thirds of its Members' representatives are present at its meetings.

Decisions shall be taken by voting. For the purpose of calculating majorities, only votes in favour and against shall be counted.

b. Decisions may also be taken in writing between meetings.

c. Each Member of the Bank shall have one vote for each participating certificate it holds.

d. Any Member that has failed to pay on time the part of the capital falling due may not exercise the voting rights corresponding to the sum due and not paid, for as long as such non-payment persists.

e. Decisions shall be made by a majority of the Members voting in favour or against and holding two-thirds of the votes cast.

f. A majority of three-quarters of the Members voting in favour or against and holding three-quarters of the votes cast shall be required for:

- the decision provided for in Section 3. paragraph 3 of this Article;

- any adjustments to the apportionment table appended to these Articles of Agreement not resulting from the admission of new Members which are made pursuant to Section 3. paragraph 1, subparagraph c.

CEB – Articles of Agreement

g. The decisions referred to in Section 3. paragraph 1, subparagraphs f. and h. shall be taken by a unanimous vote of the Members casting a vote.

Section 5

a. The Governing Board shall be chaired by a Chairperson elected by the Governing Board for a three-year term.

The outgoing Chairperson may be re-elected for a further three-year term. Each Member of the Bank is entitled to present a candidate.

The Chairperson shall be responsible for political relations with officials of States, the Council of Europe and other international institutions, in close co-operation with the Governor.

The Chairperson shall keep the Committee of Ministers and the Parliamentary Assembly regularly informed of the Bank's activities; in particular, he/she shall forward the Governor's report to the Committee of Ministers and maintain all other necessary contacts with the Council of Europe.

Article X

**Administrative Council<sup>1</sup>**

Section 1

The Administrative Council is vested with all the powers delegated to it by the Governing Board in pursuance of Article IX.

Section 2

a. The Administrative Council shall consist of a Chairperson appointed by the Governing Board for a three-year term, renewable for a second three-year term, and one representative appointed by each Member. Each Member may appoint a substitute. The Secretary General of the Council of Europe may participate in or be represented at the meetings.

b. The Administrative Council shall be convened by its Chairperson or at the request of five of its members at least four times a year.

c. The Administrative Council may, when necessary, invite representatives of international organisations or any other interested person to participate in its proceedings without the right to vote.

Section 3

a. Decisions of the Administrative Council shall be considered valid only if two-thirds of its Members' representatives are present at its meetings.

b. Each Member shall have one vote for each participating certificate it holds.

Decisions shall be taken by a majority vote. For the purpose of calculating the majority or majorities, only votes in favour or against shall be counted.

c. Decisions may also be taken in writing between meetings.

d. Any Member that has failed to pay on time the part of the capital falling due may not exercise the voting rights corresponding to the sum due and not paid, for as long as such non-payment persists.

<sup>1</sup> Modified by the Governing Board by its Resolution 384 adopted at the 196th meeting (Paris, 26 November 2010)

CEB – Articles of Agreement

e. However, the Administrative Council shall adopt the following decisions by a majority of its members voting in favour or against and by a majority of votes cast:

&nbsp;&nbsp;&nbsp;&nbsp;i) proposals and opinions addressed to the Governing Board in accordance with Article IX, Section 3.
paragraph 1, subparagraphs c., d., f., m. and n.;

ii) adoption or amendment of the Rules of Procedure of the Administrative Council;

f. Furthermore, the Administrative Council shall take by a majority of Members voting in favour or against and holding two-thirds of the votes cast decisions relating to investment projects which have not received the opinion as to admissibility referred to in Article XIII, subparagraph c. of the Articles of Agreement.

Section 4

The Administrative Council may at any time appoint committees from among its members and delegate to such committees powers to be specified in each case.

Article XI

**Governor<sup>1</sup>**

Section 1 – *Functions of the Governor*

a. The Governor shall be the legal representative of the Bank. He/She shall be the head of the Bank's operational services and shall conduct day-to-day business on the instructions of the Administrative Council. In accordance with Articles V and VII, he/she shall not contract any financial obligations without authorisation from the Administrative Council. Under the general supervision of the Administrative Council, he/she shall be responsible for the organisation of the operational services and for the appointment and dismissal of the Bank staff, within the framework of the regulations adopted by the Administrative Council.

b. The Governor shall be appointed for a term of five years, which is renewable once. The amount of his/her salary shall be fixed by the Administrative Council.

c. In the performance of their duties, the Governor, the Vice-Governors and staff must devote themselves fully to the service of the Bank, to the exclusion of any other activity. Each Member shall respect the international character of the task of the Governor, Vice-Governors and Bank staff and refrain from any attempt to influence them.

d. The Council of Europe Staff Regulations shall apply to the Bank staff in any matter not covered by a specific decision of the Administrative Council.

Section 2 – *Vice-Governor(s)*

a. The Governor shall be assisted by one or more Vice-Governors. The Governor shall designate a Vice-Governor Delegate who shall replace him/her in case of absence or incapacity. The Governor shall determine the responsibilities of the Vice-Governors taking into account the post descriptions approved by the Administrative Council.

b. The Vice-Governor(s) shall be appointed by the Governing Board on a proposal from the Governor, following an opinion on conformity from the Administrative Council and after consultations with the members of the Governing Board.

c. On a proposal from the Governor, the Administrative Council shall approve the post description(s) of the Vice-Governor(s).

<sup>1</sup> Modified by the Governing Board by its Resolution 384 adopted at the 196th meeting (Paris, 26 November 2010).

CEB – Articles of Agreement

d. The Vice-Governor(s) shall be appointed for a term of five years, which is renewable once. The amount of their salary shall be fixed by the Administrative Council.

Section 3 – *Reports to the Administrative Council*

The Governor shall give his/her opinion to the Administrative Council on the technical and financial aspects of investment projects submitted to the Bank.

The Governor shall submit regular reports to the Administrative Council on the situation of the Bank and on proposed operations. The Governor shall also provide any information requested by the Administrative Council.

The Governor shall draw up a comprehensive annual report on all operations carried out during the year. This report shall be accompanied by the Bank's financial statements, as well as the Auditing Board's report on these documents.

Article XII

**Auditing Board**

The Auditing Board shall consist of three members appointed pursuant to Article IX, Section 3. subparagraph m. for their competence in economic and financial matters. They shall act completely independently.

The Auditing Board shall inspect the Bank's accounts and verify that the operational accounts and balance sheet are in order.

In its annual report, the Auditing Board shall certify that the balance sheet and operational accounts accord with the books, that they give an accurate and true picture of the state of the Bank's affairs as at the end of each financial period and that the Bank is being managed according to the principles of sound financial management.

The Board shall receive copies of any documents useful to it in its work, such as the reports of the external and internal auditors. At the request of the organs of the Bank, the Board shall perform any other task pertaining to the supervision of the Bank's financial activity.

Article XIII

**Council of Europe**

a. With a view to ensuring relations with the Council of Europe, the Committee of Ministers and Parliamentary Assembly of the Council of Europe shall be regularly informed of the Bank's activities. The Governing Board shall state a position on the recommendations and opinions of the Committee of Ministers and Parliamentary Assembly transmitted to it.

b. The Secretary General of the Council of Europe shall participate in, or may be represented at, meetings of the Governing Board and Administrative Council, without the right to vote.

He/She shall carry out any duty entrusted to him in pursuance of the present Articles of Agreement or of the Third Protocol to the General Agreement on Privileges and Immunities of the Council of Europe. In this connection he/she shall place the requisite staff at the disposal of the Bank.

He/She may perform any other duty entrusted to him/her by the Organs of the Bank in accordance with the provisions of the Partial Agreement on the Council of Europe Development Bank.

CEB – Articles of Agreement

c. Applications for loans or guarantees shall be submitted to the Administrative Council after receipt of the Secretary General's opinion as to admissibility based on the project's conformity with the political and social aims of the Council of Europe.

Article XIV

**Headquarters**

The headquarters of the Bank shall be in Strasbourg, France. The headquarters of the operational services shall be in Paris and may only be changed by a decision of the Governing Board and the Administrative Council taken in identical terms.

Article XV

**Withdrawal of Members; suspension of operations and liquidation of the Bank<sup>1</sup>**

Section 1 – *Withdrawal of Members*

Any Member may withdraw from the Bank on giving notice of six months prior to the end of the current calendar year. The withdrawal shall become effective on 31 December following the notice. Any notice given less than six months before the end of the current calendar year shall only become effective on 31 December of the subsequent calendar year. The Member may notify the Bank in writing of the cancellation of its notice of intention to withdraw at any time before the withdrawal becomes effective.

Section 2 – *Settlement of accounts with former Members*

a. After the date on which a Member ceases to be a Member, such former Member shall remain liable for its obligations to the Bank so long as any part of the loans or guarantees extended before it ceased to be a Member are outstanding; but it shall cease to incur such liabilities with respect to loans and guarantees entered into thereafter by the Bank and to share either in the income or expenses of the Bank.

b. At the time the Member ceases to be a Member, the Bank shall arrange for the repurchase of such former Members' participating certificates as a part of the settlement of accounts with such former Member in accordance with the provisions of this Article. For this purpose, the purchase price of the certificates shall correspond to the paid-up capital plus reserves as shown by the books of the Bank on the date of cessation of membership.

c. The payment for participating certificates repurchased by the Bank under this Article shall be governed by the following conditions:

i) any amount due to the former Member for its certificates shall be withheld so long as the former Member,
any of its agencies or instrumentalities remains liable, as borrower or guarantor, to the Bank and such amount may, at the option of the
Bank be applied on any such liability as it matures. In any event, no amount due to a Member for its certificates shall be paid until
six (6) months after the date upon which the Member ceases to be a Member;

ii) payments for certificates may be made from time to time until the former Member has received the full repurchase price, to the extent by which the amount due as the repurchase price, in accordance with paragraph b of this Section, exceeds the aggregate amount of liabilities on loans and guarantees as set forth in subparagraph (i) above;

<sup>1</sup> Modified by the Governing Board by its Resolution 394 adopted at the 200th meeting (Paris, 25 November 2011).

CEB – Articles of Agreement

iii. payments shall be made in euros on such conditions and dates
as the Governing Board determines; and

iv) if losses are sustained by the Bank on any loans or guarantees which were outstanding on the date the Member State's withdrawal becomes effective, and if the amount of such losses exceeds the amount, at that date, of the provisions provided against losses on the date the Member State's withdrawal becomes effective, such former Member shall repay, upon demand, the amount by which repurchase price of its certificates would have been reduced if the losses had been taken into account when the repurchase price was determined. In addition, the former Member shall remain liable on any call for unpaid subscriptions, to the extent that it would have been required to respond had the call been made at the latest on the date the repurchase price of its certificates was determined.

d. if the Bank terminates its operations pursuant to Section 4 of this Article within six (6) months of the date upon which any Member ceases to be a Member, all rights of such former Members shall be determined in accordance with the provisions of this same Section.

Section 3 – *Suspension of operations*

Should the Governing Board decide upon the suspension of activities, the Bank shall cease all loan and guarantee operations.

Section 4 – *Liquidation of the Bank*

Should the Governing Board decide upon the termination of operations, the Bank shall forthwith cease all activities except those incidental to the settlement of its obligations and the realisation, conservation and preservation of its assets.

After all liabilities of the Bank, including satisfaction of rights upon distribution which may previously have been granted by the Bank upon accepting contributions under Article V, have been discharged or provided for, the Members of the Bank shall adopt a plan for the distribution of assets which shall be based on the following principles:

a. No Member of the Bank against which the Bank has an unsatisfied claim shall be eligible to participate in the distribution under the plan until it has regularised its position;

b. Priority shall be given to using the Bank's net assets to reimburse to Members the sums paid by them in pursuance of Article IV, in proportion to the number of certificates paid up.

Any excess of the Bank's net assets over the aggregate total of such distributed shares shall be allotted to all Members of the Bank in proportion to the number of participating certificates held by each;

c. Should there be net liabilities, they shall be distributed among the Members of the Bank in proportion to the number of participating certificates held by each. Each Member will be required to pay its share to the Bank, less the certificates paid up and up to a maximum of the certificates subscribed.

Article XVI

**Interpretation of the present Articles of Agreement**

Any decision taken by the Administrative Council concerning the interpretation of the present Articles of Agreement may be referred to the Governing Board at the request of any Member. Pending the Governing Board's ruling, the Bank may, as it deems it necessary, act in accordance with the decision of the Administrative Council.

CEB – Articles of Agreement

Article XVII

**Notifications**

The Secretary General of the Council of Europe shall notify the Members of the Bank and the Governor of:

&nbsp;&nbsp;&nbsp;&nbsp;a) the deposit of any declaration or instrument of acceptance of these Articles of Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;b) any document amending these Articles of Agreement.

The Secretary General of the Council of Europe shall forward a certified copy of these Articles of Agreement to each Member State of the Council of Europe and to every other Member of the Bank.

CEB – Articles of Agreement

**APPENDIX**

**TABLE APPENDED TO THE ARTICLES OF AGREEMENT SHOWING THE PERCENTAGE APPORTIONMENT OF<br> THE PARTICIPATING CERTIFICATES SUBSCRIBED BY THE MEMBERS OF THE BANK<br> (with amendments reflecting the accession of Bulgaria (28.05.94), Slovenia (1.02.94), Lithuania (8.01.96),<br> Romania (5.03.96), Croatia (24.06.97), North Macedonia (15.12.97), Hungary (10.03.98), Estonia (1.04.98), Republic<br> of Moldova (4.05.98), Poland (17.08.98), Latvia (14.09.98), Slovak Republic (22.12.98), Czech Republic (12.02.99),<br> Albania (24.06.99), Bosnia and Herzegovina (18.12.2003), Serbia (23.04.2004), Ireland (30.11.2004), Georgia<br> (10.01.2007), Montenegro (19.11.2007), Kosovo (4.11.2013), Andorra (26.05.2020) and Ukraine (15.06.2023))**

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| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;MEMBER STATES | &nbsp;&nbsp;% | &nbsp;&nbsp;MEMBER STATES | &nbsp;&nbsp;% |
| &nbsp;&nbsp;Albania | &nbsp;&nbsp;0.247 | &nbsp;&nbsp;Liechtenstein | &nbsp;&nbsp;0.030 |
| &nbsp;&nbsp;Andorra | &nbsp;&nbsp;0.091 | &nbsp;&nbsp;Lithuania | &nbsp;&nbsp;0.232 |
| &nbsp;&nbsp;Belgium | &nbsp;&nbsp;3.033 | &nbsp;&nbsp;Luxembourg | &nbsp;&nbsp;0.641 |
| &nbsp;&nbsp;Bosnia and Herzegovina | &nbsp;&nbsp;0.179 | &nbsp;&nbsp;Malta | &nbsp;&nbsp;0.187 |
| &nbsp;&nbsp;Bulgaria | &nbsp;&nbsp;1.153 | &nbsp;&nbsp;Montenegro | &nbsp;&nbsp;0.122 |
| &nbsp;&nbsp;Croatia | &nbsp;&nbsp;0.395 | &nbsp;&nbsp;Netherlands | &nbsp;&nbsp;3.669 |
| &nbsp;&nbsp;Cyprus | &nbsp;&nbsp;0.367 | &nbsp;&nbsp;North Macedonia | &nbsp;&nbsp;0.235 |
| &nbsp;&nbsp;Czech Republic | &nbsp;&nbsp;0.794 | &nbsp;&nbsp;Norway | &nbsp;&nbsp;1.288 |
| &nbsp;&nbsp;Denmark | &nbsp;&nbsp;1.655 | &nbsp;&nbsp;Poland | &nbsp;&nbsp;2.367 |
| &nbsp;&nbsp;Estonia | &nbsp;&nbsp;0.235 | &nbsp;&nbsp;Portugal | &nbsp;&nbsp;2.568 |
| &nbsp;&nbsp;Finland | &nbsp;&nbsp;0.725 | &nbsp;&nbsp;Republic of Moldova | &nbsp;&nbsp;0.101 |
| &nbsp;&nbsp;France | &nbsp;&nbsp;16.901 | &nbsp;&nbsp;Romania | &nbsp;&nbsp;1.106 |
| &nbsp;&nbsp;Georgia | &nbsp;&nbsp;0.182 | &nbsp;&nbsp;San Marino | &nbsp;&nbsp;0.090 |
| &nbsp;&nbsp;Germany | &nbsp;&nbsp;16.901 | &nbsp;&nbsp;Serbia | &nbsp;&nbsp;0.477 |
| &nbsp;&nbsp;Greece | &nbsp;&nbsp;3.033 | &nbsp;&nbsp;Slovak Republic | &nbsp;&nbsp;0.350 |
| &nbsp;&nbsp;Holy See | &nbsp;&nbsp;0.003 | &nbsp;&nbsp;Slovenia | &nbsp;&nbsp;0.227 |
| &nbsp;&nbsp;Hungary | &nbsp;&nbsp;0.827 | &nbsp;&nbsp;Spain | &nbsp;&nbsp;11.023 |
| &nbsp;&nbsp;Iceland | &nbsp;&nbsp;0.187 | &nbsp;&nbsp;Sweden | &nbsp;&nbsp;1.446 |
| &nbsp;&nbsp;Ireland | &nbsp;&nbsp;0.892 | &nbsp;&nbsp;Switzerland | &nbsp;&nbsp;0.559 |
| &nbsp;&nbsp;Italy | &nbsp;&nbsp;16.901 | &nbsp;&nbsp;Türkiye | &nbsp;&nbsp;7.166 |
| &nbsp;&nbsp;Kosovo | &nbsp;&nbsp;0.121 | &nbsp;&nbsp;Ukraine | &nbsp;&nbsp;1.059 |
| &nbsp;&nbsp;Latvia | &nbsp;&nbsp;0.236 |  |  |
|  |  | &nbsp;&nbsp;TOTAL | &nbsp;&nbsp;100.00 |

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