The EIB backs up Greece in social housing financing solutions
The EIB backs up Greece in social housing financing solutions

The EIB backs up Greece in social housing financing solutions

In the context of the developing a new pan-European financial platform.
Share Copy Link
RE+D magazine
23.07.2024

The European Investment Bank is discussing financing possibilities for social and affordable housing projects in Greece.

The move is especially strong following the adoption of the EIB's new strategic map last month, which includes housing among the Bank's eight key priorities.

This issue was discussed at a working breakfast held this morning by the vice-president of the EIB, Yiannis Tsakiris, with executives of public benefit institutions at the EIB's offices in Vasilissis Sofias, including the Bodosaki Foundation, the Laskaridis Foundation, the Captain Vassilis and Carmen Konstantakopoulos Foundation, the Athena Martinou Foundation, as well as the TIMA Charitable Foundation. The financing arm of the EIB is also in discussions with the regions, as well as DYPA, with the aim of supporting - on extremely preferential terms - the construction of new houses and also the change of use of buildings in order to be used for affordable housing with the system of the so-called " social compensation".

Mr Tsakiris oversees housing for all of Europe on the EIB's Steering Committee, which last week organized a conference with more than 300 stakeholders and experts in the sector to discuss solutions to an issue that has become a flame throughout the E.U. and especially in big cities and tourist destinations. It was preceded, on Thursday, by the programmatic statements of the President of the Commission, Ursula von der Leyen, in the European Parliament, which include the creation of a new pan-European financing platform for social and sustainable housing in collaboration with the EIB.

For Greece, the EIB is reportedly in discussions to finance housing for civil servants in island and tourist destinations, where rents have skyrocketed, but also in Athens, on land to be allocated for this purpose by public bodies or institutions and with the assistance of private funds. Discussions are also ongoing for the construction of houses for flood victims in Thessaly, while negotiations for the financing of student residences are at a more advanced stage.

The EIB Group, which thanks to its excellent credit rating and its non-profit nature, offers long-term financing with extremely favorable interest rates, is particularly interested in three sectors in the housing sector:

First in funding innovation in housing, including new technologies and materials. Secondly, in financing the energy upgrading of buildings, including residences.

And thirdly, in funding social housing, especially for vulnerable groups and the underprivileged, as well as students.

In the meantime, within the week the announcement of two large projects by the EIB for the financing of small and medium enterprises, in cooperation with Greek banks, as well as a large investment in the clean energy sector is expected.