European Investment Bank to finance 12,000 new homes

The European Investment Bank is to finance the construction of 12,000 new affordable homes through a €1.3Bn credit line.

The announcement was made this week by the Prime Minister, Luís Montenegro, in Castelo de Vide without going into further details.

According to the business daily Negócios the credit line will finance the construction of new homes and the renovation of existing ones (most of them are new homes), at affordable prices, with an investment line of €1,340 million (€1.3Bn) bringing the total cost to €1,789 million (€1.7Bn).

In other words, the EU is financing 74.9% of the total foreseen with the rest financed from national sources.

The houses will be put on te rental market at affordable prices with the project being approved on 10 June by the EU.

The EIB says the project is part of the government’s Programa Accessível (Accessible Programme) – a nationwide public programme aimed at financing housing at affordable rates and create a hosing stock of social housing for below-market value rents.