The European Investment Bank (EIB) has earmarked €200 million to finance small and medium-sized infrastructure projects in Germany.
The funds will reach their recipients thanks to a loan agreement signed with Deutsche Kreditbank (DKB), a subsidiary of state-backed lender Bayerische Landesbank, which will onlend the funds to small and medium-sized private sector enterprises, municipalities and public sector entities.
“This offering is consciously targeting multiple sectors to give a sustainable boost to growth and employment,” said Wilhelm Molterer, EIB vice president, in a statement.
“Urban renewal and healthcare projects are often particularly labour-intensive and create jobs. But sustainable economic development is also dependent on viable education projects.”
The EIB said that a broad range of projects, including public-private partnerships, will be eligible for financing. Funds will be used to cover up to 50 percent of the cost of individual projects.
“We focus our business on selected areas such as health, education and renewable energies and are pleased to be obtaining further EIB funds at favourable interest rates for these sectors in particular under this agreement. We will pass on the funding advantage to municipalities and businesses in full for investment in welfare provision,” said DKB executive Rolf Mähliß.
He added that eligible projects could include energy-related assets, including the building of wind farms or the extension of supply networks, as well as social infrastructure such as the construction or refurbishment of schools and day nurseries.