The Thüringer Aufbaubank (TAB) has been granted a EUR 100 million global loan from the European Investment Bank (EIB) to fund the upgrading of municipal infrastructure in the Thuringia region. The finance contract was signed in Erfurt today by EIB Vice-President Matthias Kollatz-Ahnen and TAB’s two-man board, Matthias Wierlacher and Michael Schneider.
“In our talks with local authorities, we sense a great deal of uncertainty regarding the financing of their investment”, said Matthias Wierlacher. “We believe that TAB has an important role to play in making municipal projects happen. And in the EIB we have a strong partner for this”. The loan will serve to finance the refurbishment or construction of schools and investment in crèches, sports facilities, museums and municipal buildings. Transport, water and sanitation projects will also be supported. Schemes costing between EUR 40 000 and EUR 25 million will be eligible for financing.
In the words of EIB Vice-President Matthias Kollatz-Ahnen: “TAB has been a dependable partner of the EIB for many years and plays a key role in financing local and regional development in Thuringia. Promoting convergence remains a top priority in the EIB’s lending as targeted support for the weaker regions strengthens the EU’s overall economic and social cohesion.”
In 2008 and 2009 TAB received EIB global loans totalling EUR 125 million, which were onlent to 40 borrowers and disbursed in full. Projects financed included the restoration of the Church of Our Lady of the Mountain and the Hausmann tower in Bad Frankenhausen, the Rieth sports hall in Erfurt and a water and sanitation scheme in the Thüringer Holzland region.
Background information:
The EIB is the European Union’s bank. Its purpose is to promote EU objectives by providing long-term loans for viable projects. In 2010 EIB lending amounted to EUR 72 billion, including EUR 7.04 billion for projects in Germany.
Headquartered in Erfurt, Thüringer Aufbaubank is the development bank of the Free State of Thuringia. Its business lines include economic and rural development, infrastructure financing, lending to municipalities and the promotion of housing construction. In 2010 it committed subsidies and loans totalling EUR 920 million, including EUR 337 million in lending to municipalities and infrastructure projects.
Press contact: Thüringer Aufbaubank: Website: http://www.aufbaubank.de/