>@EIB/To be defined

The European Investment Bank (EIB) has provided a loan of EUR 50 million to Instituto da Habitação e Reabilitação Urbana, IP (IHRU), a Portuguese public institute responsible for ensuring the implementation of the Government’s policies in the areas of housing and urban rehabilitation. Among other activities, IHRU provides finance for housing and urban rehabilitation programmes through grants, loans and interest subsidies, and manages a sizeable stock of housing units.

EIB Vice-President Román Escolano and the President of IHRU, Vítor Reis, signed the finance contract for the first tranche of EUR 25 million during an event which was also attended by the Minister of Environment, Spatial Planning and Energy, Jorge Moreira da Silva, and the Secretary of State for Spatial Planning and Nature Conservation, Miguel de Castro Neto.

VP Escolano highlighted the importance of this loan which “supports an investment programme focused on the refurbishment of buildings dedicated to rental housing under a conditional rent regime, thus fostering economic and social cohesion, urban rehabilitation and sustainable development, which are key priorities of the European Union.”

The investment programme – 50% funded by the EIB – comprises refundable support (loans) to owners of buildings in designated areas of Portugal’s major cities, and it is estimated that it could fund 300 buildings or 2 000 housing units. Final beneficiaries will be owners of the buildings and units eligible for rehabilitation – public or private entities and individuals.

The funds provided by the EIB will promote the rehabilitation of housing buildings and units and will enhance quality and attractiveness for living and conducting business in the neighbourhoods. The programme will also facilitate better access to rental housing and create employment, especially for SMEs in the construction sector.

Since 2007, the EIB has already backed IHRU’s initiatives with two previous loans, supporting its social housing and rehabilitation programmes. This operation provides complementary EIB financing, increasing EIB support for urban regeneration.