CEB approves € 150 million social housing loan to Caisse des Dépôts et Consignations

03 October 2016

PARIS – The Council of Europe Development Bank (CEB) has approved a €150 million loan to Caisse des Dépôts et Consignations (CDC) to finance a social housing project for young persons.

The CEB loan will finance CDC investments in the “Young Workers’ Hostels” (Foyers de jeunes travailleurs) and will be used for the renovation and extension of some 170 units or 13 000 dwellings.

The “Young Workers’ Hostels” are collective social housing facilities run mostly by non-profit associations. They provide temporary accommodation to young persons aged 15 to 25 years, including young professionals, job-seekers, trainees and also young persons who have broken with their families or have left home. The programme offers accommodation to nearly 100 000 young persons every year, an estimated 80% of whom at the moment are living below the poverty line.

The renovation work will help to improve the safety, weatherproofing and energy efficiency of the buildings concerned. It will also contribute to the upgrading of the heating, sanitary facilities and building structure.

Commenting on the approved loan, CEB Governor Rolf Wenzel said: “Job insecurity, particularly among young persons, poses a major obstacle to accessing affordable housing and building a decent life. By financing the renovation of hostel buildings through this loan, CEB funds will assist some 13 000 young persons. This housing project is entirely consistent with the CEB’s social mission and I am pleased that we are joining forces with Caisse des Dépôts et Consignations, a key player in French public financing.”

Set up in 1956, the CEB (Council of Europe Development Bank) has 41 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 (Aa1 with Moody's, outlook stable, AA+ with Standard & Poor's, outlook stable and AA+ with Fitch Ratings, 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.