News
On visit to Germany CEB Governor underlines the importance of inclusive public housing
08 October 2021
LEIPZIG/PARIS
– The Governor of the Council of Europe Development Bank (CEB), Rolf Wenzel, today
attended a ceremony to mark the construction of social housing units in the
City of Leipzig, Germany, together with the city’s mayor, Burkhard Jung.
Last month the CEB approved an additional loan of €100 million to Leipziger Wohnungs and Baugesellschaft MBH (LWB), one of the largest municipal housing companies in Germany, to finance the construction of new housing units and the renovation of existing ones for disadvantaged and low-income population.
Being one of the fastest growing cities in Germany in terms of economic development and demographic trends, Leipzig is currently facing housing scarcity that is compounded by the past underinvestment in social housing.
In
this context, the latest CEB loan aims to promote a balanced housing policy and
ensure social diversification.
“With Leipzig's population and economy growing, it is important to support the city authorities to meet the increased demand for affordable housing,” Governor Wenzel said. “The CEB is therefore pleased to expand the excellent cooperation with LWB and it stands ready to support the municipal authorities in other sectors, such as health and education.”
The new loan complements the €100 million one issued to LWB in 2019. The direct beneficiaries will be low-income households, including young families, single parents, elderly persons, students, migrants and refugees.
The overall project should be completed by 31 December 2024 when a total of 3 411 residential units for 8 915 final beneficiaries, including 708 places at day-care facilities, is planned to be available.
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 (Aa1 with Moody's, outlook stable, AAA with Standard & Poor's, outlook stable, AA+ with Fitch Ratings, outlook positive and AAA* with Scope 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.
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