BGK to launch social housing financing platform with EIB

State-owned lender BGK signed a deal with the European Investment Bank to launch an investment platform supporting social and affordable housing projects. By 2021 it will support projects worth PLN 2.1 billion. “Poland needs significant investment in social and affordable housing in the coming years and the availability of public funding and public programs in this area is limited. We are therefore glad that the EIB and our long-time partner BGK will join forces to help close the financing gap by establishing this investment platform. We believe it will help the municipalities with the revitalization of urban areas and efficient urban development. Equally important is that this joint initiative will reduce social exclusion by making housing more accessible. The Investment Plan for Europe also means investing more in social infrastructure and supporting the solidarity economy,” EIB Vice-President Vazil Hudák said. This cooperation will be based on three main pillars, the National Program for Support of Social Housing, which already exists, and receives EIB support in the form of partial funding for projects totaling PLN 800 million. Complementary lending aimed at the largest projects is to be provided through individual loans for an amount up to a total of PLN 400 million from the EIB. And, the last pillar, worth PLN 400 million  of intermediated loans – projects will be financed by BGK, partially or entirely based on EIB funding.