The European Investment Bank (EIB) is considering the possibility of providing Ukraine with a loan of €200 million for the implementation of a project aimed at building social rental housing and supporting its sustainable financial model. The main goal of the initiative is to provide financial support to cities affected by armed aggression from the Russian Federation or hosting a significant number of internally displaced persons, in order to create affordable, energy-efficient, and resilient state-owned housing.
This is reported by Finway
Conditions for financing and project implementation
According to the project, the loan funds are to be provided in the form of sub-loans or sub-grants, as well as in combination with investment grants for designated communities. These funds will be channeled through central government authorities to support the development of social housing infrastructure. In addition to financial assistance, it is planned to provide advisory support regarding the development of the regulatory and institutional framework for the establishment of a social housing fund in accordance with EIB requirements and European Union standards.
Project prospects and guarantees
The total cost of the project is €400 million, of which half—€200 million—may be financed by the EIB. It is expected that the loan program will be secured by a guarantee from the European Union. It was previously reported that the EIB is already assessing a pilot project in the field of social housing, and the signing of the first financing agreement could take place as early as this year.
The European Investment Bank (EIB) is considering a project to provide Ukraine with a loan of €200 million for the construction of social rental housing and support for its financial model. Thus, it is planned to provide financial resources to cities affected by the war or hosting a large number of internally displaced persons (IDPs) for the construction of affordable, energy-efficient, and financially sustainable state-owned housing.