The European Investment Bank (EIB) has approved a loan of EUR 250 million to Société Wallonne du Logement (SWL) for the upgrading and renovation of social housing in Wallonia. The finance contract covering an initial tranche of EUR 150 million and the agreements on the provision of security were signed on 24 June 2004 by EIB President Philippe Maystadt along with Michel Daerden, Vice-President of the Walloon Government and Housing and Budget Minister, and SWL's General Manager Alain Rosenoer.
The loan will go towards financing the first phase of the EUR 1 billion investment programme announced by SWL and the Walloon Government. This plan for the 5-year period 2004-2008, affecting more than 36 000 low-income homes in the five Walloon provinces and particularly in regional development areas such as Hainaut and Liège, will rehabilitate one third of the housing stock managed by SWL. Apart from demolition and reconstruction of some 1 750 dwellings, the works will centre mainly on the renovation and upgrading to safety standards of the housing stock. The programme of works to be assisted by the EIB loan will also include certain district renewal projects, which will contribute to a better urban environment.
The support so provided by the EIB - the European Union's financing institution - will enable Société Wallonne du Logement, which manages the Walloon social housing stock, to diversify part of the external financing requirements for its investment programme on favourable terms, particularly as regards maturity.
When signing the agreements, Philippe Maystadt expressed satisfaction at the cooperation between the EIB, SWL and the Walloon authorities, indicating also that the EIB might similarly consider supporting the second half of SWL's programme.
This loan to SWL, plus its operation with Vlaamse Huisvestingsmaatschappij financing social housing in the Flemish Region, will bring the amount that the EIB has devoted to this sector in Belgium to EUR 425 million. The EIB President commented that the Bank's objective in assisting these investment programmes is to help to improve the living conditions of the occupants of these dwellings and to support the continuity and development of social housing in the face of increasing social demand. Philippe Maystadt sees such lending as forming part of the Bank's policy of helping to foster sustainable urban development.
Its commitment to this is manifested in the aggregate figure of some EUR 23 billion that the EIB has channelled over the past five years into projects having a direct impact on improving the environment and the quality of urban life in Europe: nearly 3 billion for specifically social housing projects, 10 billion for development, renovation, modernisation and improvement schemes concerning districts, buildings and infrastructure and 10 billion for urban public transport.