Laurent de Mautort, Western Europe Financing Operations Director at the European Investment Bank (EIB), and Alain Lemaire, CEO of BPCE in charge of the Caisses d’Epargne network, signed a memorandum of understanding on 11 September 2009 which provides for up to EUR 125 million  to be made available to the Caisses d’Epargne for social housing loans. This agreement forms part of the France Logement Social programme launched in 2007 towards which the EIB is committed to providing up to EUR 500 million. To date, EUR 125 million has been made available to the Caisses d’Epargne from an initial tranche of EUR 250 million.

The new EUR 125 million agreement has been concluded by BPCE on behalf of the Caisses d’Epargne. The criteria for social housing lenders’ eligibility to use this resource have been widened, enabling such lenders to finance their investments beyond the building and upgrading of social housing. The profile of these subsidiary financings will be adapted to the characteristics of the operations and the financing terms will be particularly favourable.

The broadening of the overall programme goes with the grain of public policies on developing the stock of rental accommodation at the heart of the Economic Stimulus Plan and helps meet the social housing lenders’ funding requirements. The memorandum of understanding confirms the commitment of the EIB and the Caisses d’Epargne to supporting the expansion of long-term investment in housing, the urban environment and social cohesion.

The France Logement Social programme underpins the French Government’s policies and contributes to improved territorial balance. It meshes with European policies on the urban environment, sustainable urban growth and social cohesion. This cohesion also needs to be promoted by creating jobs and setting up services and economic activities in struggling urban areas with high rates of unemployment.

Briefing Note:

About the EIB

The European Investment Bank (EIB) is the European Union’s long-term financing institution. Its remit is to grant long-term loans for sound investment projects, whether public or private, that further the European Union’s integration, cohesion and development objectives. These translate into six policy priorities: economic and social cohesion; protecting the natural and built environment; research and innovation; supporting SMEs; developing trans-European transport and energy networks; and promoting sustainable, competitive and secure energy sources. In 2008, the EIB provided a total of EUR 57.6 billion in financing, of which EUR 51.5 billion went to projects carried out in the European Union.

About BPCE

BPCE is the central body of the new banking group that sprang from the merger of the Banque Populaire Group and the Caisse d’Epargne Group. This operation was completed on 31 July 2009 with the transfer to BPCE of the principal businesses of BFBP and CNCE, and BPCE became effectively operational on Monday 3 August 2009. The BPCE Group ranks as France’s second largest banking group and comprises two autonomous and complementary retail bank networks: that of the 20 Banques Populaires and that of the 17 Caisses d'Epargne. The new group has around 37 million customers and wide coverage in France with more than 8 200 branches, 120 000 employees and over 7 million members.