Half a billion euros for tenement flats
ResidentialWith the support of the Investment Plan for Europe, by 2021 social tenement houses will have been granted subsidies totalling app. PLN 2.1 bln (app. EUR 496 mln). Projects financed by the platform will include the construction or furnishing of affordable apartments for renting as well as the construction of such apartments with a subsequent purchase option. The funds will also be used to construct infrastructure, including roads, sewage systems, public buildings and as contributions for non-profit social housing associations.
The vice-president of the EIB, Vazil Hudák, who is responsible for the bank’s operations in Poland, has commented: “In the next few years considerable investment is necessary in Poland in terms of the construction of affordable apartments for renting. The availability of funds and public programmes in this field is limited, however. Therefore we are very pleased that EIB has established this investment platform and that BGK, which is our long-term partner, will be able to jointly fill in this gap in financing. We are convinced that the investment platform will satisfy the needs of administrative districts in terms of the revitalisation and effective development of urban areas. It is equally as important that the joint initiative will reduce social exclusion through increasing the availability of apartments.”
Beata Daszyńska-Muzyczka, the president of the board of BGK, added: “BGK, as a bank that supports the social and economic development of the country, plays a special role in the financing of social housing, though governmental programmes and as part of its own operations. As a state-owned development bank we can offer long-term financing and preferential interest rates, which are needed in projects of this kind. Thanks to this we have financed a total of over 100,000 sqm for less affluent people. EBI is an important partner in providing funds for the government programme. By signing the agreement to launch of the investment platform, we will be able to extend the current range of available housing of cities and social housing associations. The agreement forms part of the Investment Plan for Europe and is the first investment platform of this kind in Poland.”
The cooperation of EIB and BGK will be based on three main pillars. The first already exists – it is the governmental social housing support programme, which involves EIB providing partial funding for projects with a combined value of PLN 800 mln (app. EUR 190 mln). IN addition to that, supplementary loans designated for the execution of the largest projects will be granted by EBI in the form of individual loans with a maximum value of PLN 400 mln (app. EUR 95 mln). The final pillar (also with a total value of EUR 400 mln) includes indirect loans: the projects will be financed by BGK, with the funds coming entirely or partly from loans provided by EIB. The start of the cooperation with BGK under this joint financial instrument will make it possible for the EIB to finance projects carried out by smaller entities.
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