CEB signs €100 million loan agreement with Investitionsbank Berlin to finance social housing

The agreement was signed at the IBB’s headquarters in Berlin. Signing on behalf of the IBB was Jürgen Allerkamp, Chairman of the Board of Management.

The €100 million loan, which was approved by the CEB’s Administrative Council in March this year, will be used to provide housing for refugees and low-income persons, including students. The funds will cover the construction of new housing units and the renovation and modernisation of existing dwellings, including energy efficiency improvements. Temporary housing units set up for refugees will be designed so they can later be upgraded to long-term housing units.

The city-state of Berlin, which has received a large number of refugees since 2014, has seen its population grow by 200,000 persons over the last few years. With unemployment at 10 percent, much higher than the national average rate, Berlin is struggling to meet the demand for affordable housing. The IBB, which is Berlin’s state-owned public development bank, has made the development of social housing one of its priorities.

Commenting on the signing of the loan agreement, Governor Wenzel said: “I am glad that this CEB loan will help to improve Berlin’s public infrastructure and increase the supply of affordable housing for those who need it the most, such as refugees and displaced persons, low-income families, and students. I am especially pleased that CEB funds will contribute to the integration of refugees, which is one of the CEB’s priority areas of operation and a major part of the Bank’s social mandate.”