CEB signs €100 million loan agreement with ISB to finance social housing and public infrastructure projects
30 November 2017
PARIS – The Governor of the Council of Europe Development Bank (CEB), Rolf Wenzel, signed today a €100 million loan agreement with Investitions- und Strukturbank Rheinland-Pfalz (ISB) to finance social housing for low-income persons and improve living conditions in the State of Rhineland-Palatinate.
The agreement was signed at the CEB’s headquarters. Signing on behalf of the ISB, which is fully owned by the State of Rhineland-Palatinate, was Ulrich Dexheimer, Chair of the Management Board. Governor Wenzel also signed today the first disbursement of this loan (€20 million).
The funds provided by the CEB will be used to facilitate access to social housing for low- and medium-income persons. The programmes will benefit in particular vulnerable population groups such as refugees, elderly persons, single mothers, and persons with disabilities.
In addition, the loan provided by the CEB will finance public infrastructure investments made by municipalities and municipal companies in Rhineland-Palatinate. This will help to improve living conditions in urban and rural areas in the region, support the integration of refugees at municipal level, and benefit, among others, the elderly and those exposed to flood hazards.
The State of Rhineland-Palatinate has received close to 5% of all refugees and asylum-seekers arriving in Germany since the beginning of 2015, which amounts to over 50,000 persons, and has also been experiencing strong mobility into urban centres and a slower construction activity in recent years. This has made access to affordable housing more difficult.Commenting on the signing of the loan agreement, Governor Wenzel said: “I am pleased that this loan provided by the CEB will increase the supply of affordable housing for those who need it the most, while also supporting social investments in Rhineland-Palatinate. I am especially happy that CEB funds will contribute to the integration of refugees in the region. Social housing and refugee integration are among the CEB’s priority areas of operation in accordance with the Bank’s social mandate. This loan reaffirms our commitment to supporting all our member countries in these important areas.”
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 positive 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.