News
CEB finances social housing programme in Hesse, Germany
17 October 2016
PARIS - The Council of Europe Development Bank (CEB) and Wirtschafts- und Infrastrukturbank Hessen (WIBank) signed today a € 230 million loan agreement to support WIBank’s rented social housing programme in the state of Hesse. The loan was approved by the CEB Administrative Council on 17 March 2016.
The agreement was signed in the CEB’s headquarters in Paris. Signing on behalf of the CEB was Rolf Wenzel, CEB Governor, and on behalf of WIBank Gottfried Milde and Michael Reckhard, Chairman and Member of the Management Board respectively.
CEB funds will be used to part-finance investments undertaken by Hesse authorities as part of a programme aimed at supporting the economic development of financially weaker municipalities, including municipalities operating reception centres for refugees. The focus will be on the provision of social housing, which is one of WIBank’s core business segments and a key priority for the government of Hesse in light of demographic changes.
More specifically, the CEB loan will finance the construction, renovation and conversion of buildings to be used for social housing rentals made available to low-income persons throughout Hesse, especially in high-rent areas.
The programme is expected to benefit a large number of people experiencing problems accessing housing, including migrants and refugees, persons with disabilities, elderly individuals, persons who are unemployed or receiving benefits, and families in financial difficulties.
Commenting on the signing, Governor Wenzel said: “Financing social housing projects aimed at providing affordable home to low-income persons and families is central to the CEB’s social mission. The loan agreement we signed today is testament to the fruitful cooperation between the CEB and WIBank and will allow us to reach a vulnerable segment of the population in Hesse.”
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.