EIB promote affordable housing in Austria

The European Investment Bank (EIB) is providing Erste Bank with EUR 100m in financing to support affordable housing in Austria. Erste Bank will add a further EUR 100m of its own funds to the EIB financing, enabling it to invest a total of EUR 200m in social housing over the next three years.

The aim of the agreement is to facilitate the provision of investment resources with fixed interest rates and terms of up to 28 years. For the first time in Austria, the EIB financing will make it possible to secure the current, historically low-interest rates for newly built rental housing over almost three decades.

The funds are expected to be used in urban areas where demand for affordable housing is particularly high. An initial EUR 50m tranche from the EIB was already signed in March 2019, while the second EUR 50m tranche was signed by Erste Bank CEO Stefan Dörfler and EIB Vice-President Andrew McDowell in Vienna on May 20.

Original source: EIB
Published on 21 May 2019