EBI to subsidize public housing projects via credit agreement with BGK

Today the European Investment Bank will sign an zl. 800 million credit agreement with Bank Gospodarstwa Krajowego (BGK), to promote housing development. The money will be granted by BGK, via the Domestic Housing Fund (KFM), as preferential credits thanks to which housing co-operatives and council housing associations will develop so-called urban renovation projects to offer affordable subsidized housing. The credit from EBI is the most significant financial support ever received by KFM. Last year the fund obtained a zl.630 million credit from the European Council Development Bank. "From this (last year's) credit we have spent zl. 400 million, and zl. 230 million will go to this year's credit fund," said BGK spokesperson Magdalena Marchlewska. Financing credits granted by KFM has been permitted since 2001, when an amendment to the law on support for housing development was adopted. The KFM was previously financed only from the budget, and on a much smaller scale. (Prawo i Gospodarka, p. 6) M.T.