EIB backs €125 million of financing for affordable housing in Barcelona

Barcelona (ACN).- The European Investment Bank (EIB) approved on Tuesday a €125 million loan to the Council of Barcelona to build 2,198 affordable houses. The money will help to finance 23 promotions from all over the city and will cover 50% of the projects budget. The rest will be paid through the Council own resources (31%) and other financial sources, including public and private institutions (19%).

Gerardo Pisarello, from the Barcelona Council, said that the EIB loan will help the city save up to €45 million in interests, as the financing conditions set by the European Investment Bank are much more favourable than those of other banks. “The loan is a clear backing to Barcelona and to the social policies of the Council, which are clearly socially orientated and energy efficient”, stated Pisarello.

The Council of Barcelona is planning to build 8,800 affordable flats until 2025, and the project financed by the EIB represents a quarter of those. The flats will be offered to older people and families struggling to pay market-set rents. Tenants will pay a rent price based on their income.

Before becoming mayor of Barcelona, Ada Colau was a housing activist famous for her activities with the anti-eviction platform PAH. That is why housing is one of the priorities of her mandate.