Peru needs more housing, especially for medium and low-income households. According to the National Institute for Statistics, the country is lacking more than one million housing units. To combat this shortage, KfW is supporting a “green” social housing programme with a promotional loan of EUR 45 million.
The French development agency Agence Française de Développement (AFD) is contributing EUR 105 million to the overall financing, while the EU will supply EUR 10 million in the form of grants. This represents the first co-financing project between KfW and AFD in Latin America to be based on the Mutual Reliance Initiative – MRI. The cooperation is instead based on mutual trust in the processes of the other party. For the partners, this reduces transaction costs and facilitates cooperation with European development banks acting within a unified approach.
“The programme combines environmental protection with social responsibility, which means it fits in perfectly with our goals,” says Senior Project Manager Markus Rühling, explaining the basis for KfW Development Bank’s involvement in the project.
Original source: KfW
Published on 02 July 2019
