CEB and SWSG sign a €63.2 million loan agreement to boost social and affordable housing in Stuttgart
27 July 2020
With a total population of more than 630,000 Stuttgart is the capital and largest city of the State of Baden-Württemberg. In recent years the city has seen its population swell due to a booming economy and job opportunities, leading to higher rents and scarcity of affordable housing, particularly for those on lower incomes. Approximately a quarter of all renting households spend more than 40% of their net income on housing, making Stuttgart the third expensive city in Germany when it comes to renting.
CEB programme loan will part-finance new constructions and the acquisition and renovation of existing buildings, while also protecting and rehabilitating Stuttgart’s historic and cultural heritage, including the Weißenhofsiedlung, part of which is designated a UNESCO World Heritage site.
The programme loan initiates the relationship between the CEB and SWSG and will benefit young families, single parents, elderly persons and students, as well as migrants and refugees.
CEB Governor Rolf Wenzel commented: “We are delighted to partner with SWSG to support inclusive growth in Stuttgart. As a social development bank we place particular emphasis on investing in affordable housing as a means of reducing inequalities and tackling social exclusion of the most vulnerable populations.”
Samir M. Sidgi, Chairman of the Board of Management of the SWSG, said: "CEB and SWSG are working towards the same goal: to improve the living conditions of the less fortunate. This requires strong and reliable partners.”
Set up in 1956, the CEB (Council of Europe Development Bank) has 42 member states. Twenty-two Central, Eastern and South Eastern European countries, forming the Bank's target countries, are listed among the member states. As a major instrument of the policy of solidarity in Europe, the Bank finances social projects by making available resources raised in conditions reflecting the quality of its rating (AA+ with Fitch Ratings, outlook positive, AAA with Standard & Poor's, outlook stable and Aa1 with Moody's, outlook stable). It thus grants loans to its member states, and to financial institutions and local authorities in its member states for the financing of projects in the social sector, in accordance with its Articles of Agreement.