- Most-populous German state benefits from a €200 million EIB loan to NRW.BANK
- North Rhine-Westphalia will expand and upgrade refugee homes
- Initiative involves building, refurbishing and extending residential buildings
The European Investment Bank (EIB) and NRW.BANK have agreed to help the German state of North Rhine-Westphalia house refugees. The EIB will provide NRW.BANK with a €200 million framework loan to finance the construction, refurbishment and extension of residential buildings for temporarily or permanently housing refugees across North Rhine-Westphalia.
The EIB funds will be channelled through an NRW.BANK refugee programme in the form of loans with particularly favourable terms to local authorities in the state, which is Germany’s populous with around 18 million inhabitants. Part of the financing will be via the EIB’s €4 billion Ukraine support package for EU municipalities that have hosted Ukrainian refugees since Russia’s full-scale invasion of their country.
“Together with NRW.BANK, we are pleased to support local authorities in North Rhine-Westphalia in tackling the challenge of housing refugees,” said EIB Vice-President Nicola Beer, who oversees financing in Germany. “Suitable accommodation is the foundation for the ongoing integration in Germany of those seeking protection from war and persecution.”
Refugees continue to arrive in North Rhine-Westphalia in large numbers. Many municipalities are reaching the limits of their housing capacity. In addition to Ukraine, the refugees come from countries including Syria, Afghanistan, Iran and Iraq.
“The local authorities are greatly committed to providing safe housing for these people,” said Gabriela Pantring, deputy chair of NRW.BANK’s Management Board. “They can count on the support of NRW.BANK. Through this agreement, we are channelling funds from the EU bank to North Rhine-Westphalia to relieve the burden of financing accommodation on local authorities.”
NRW.BANK has been working with the EIB since 2006 in areas such as education, infrastructure and the environment. For example, both sides had a cooperation agreement covering the “NRW.BANK. Gute Schule 2020” funding programme. EIB framework loans used by NRW.BANK to date amount to around €1.9 billion.
Background information
EIB
The European Investment Bank (EIB) is the long-term lending institution of the European Union, owned by its Member States. It finances sound investments that contribute to EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality. The EIB Group, which also includes the European Investment Fund (EIF), signed a total of €88 billion in new financing for over 900 projects in 2023. These commitments are expected to mobilise around €320 billion in investment, supporting 400 000 companies and 5.4 million jobs.
Since the start of Russia’s full-scale invasion in 2022, the EIB has provided a total of €1.7 billion in emergency relief to Ukraine to help repair the ravaged infrastructure. The EU bank also provided €4 billion to support the integration of refugees from Ukraine in EU countries. Through the EU for Ukraine initiative and its fund, the Bank remains committed to stepping up its activities in Ukraine, in line with the mandate given by EU leaders and in close cooperation with the European Commission, the European Parliament, EU Member States and international partners.
NRW.Bank
NRW.BANK is the promotional bank of North Rhine-Westphalia. In close partnership with its owner, the federal state of North Rhine-Westphalia, the bank helps to strengthen SMEs and startups, create affordable housing and improve public infrastructure. NRW.BANK offers tailor-made financing and advisory services to individuals, businesses and local authorities in North Rhine-Westphalia. It cooperates with its financing partners, in particular all banks and savings banks, on a competition-neutral basis. In order to accelerate transition processes, it provides targeted funding incentives for a sustainable, climate-neutral and digital North Rhine-Westphalia.
