EIB and NRW.BANK agree to help German state of house refugees

“The local authorities are greatly committed to providing safe housing for these people,” said Gabriela Pantring, deputy chair of NRW.BANK’s Management Board.

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.