The European Investment Bank (EIB) said it has approved a €1.34 billion framework loan to support the construction and renovation of around 12,000 affordable housing units in Portugal.
The EIB and the Republic of Portugal have signed the first €450 million tranche of the landmark €1.34 billion framework loan approved by the EIB to co-finance the massive investment programme.
“This strategic agreement marks a major step forward in addressing Portugal’s housing challenges while promoting social inclusion, territorial cohesion, and environmental sustainability,” said the EIB.
“The total EIB´s approved framework loan will support the construction and renovation of approximately 12,000 affordable rental housing units across the country, helping to establish a long-term housing stock with rents below market prices.
“Investments will be aligned with energy efficiency and climate resilience criteria, ensuring that the new and refurbished housing stock supports Portugal and the EU environmental goals.”
The signing ceremony for the first €450 million tranche took place at the residence of the Prime Minister of Portugal in the Palácio de São Bento, Lisbon.
“Providing a solution to housing challenges is an absolute priority for this Government, which counts on the EIB as a key partner in this area that is so important for the country,” said Miguel Pinto Luz, Portugal’s Minister for Infrastructure and Housing.
“With this €1.34 billion in financing, we have another tool at our disposal for public housing in Portugal. This means approximately 12,000 more affordable homes, at below market prices, which we want to make available to families in our country as quickly as possible.”
Portugal’s Minister of State and Finance, Joaquim Miranda Sarmento, said: “Today a very important step has been taken in financing the construction and renovation of public housing in Portugal, to which the Government has been committed since the beginning of its term, with the support of entities such as the European Investment Bank (EIB), which play a vital role in this process.
“I would also like to commend the extraordinary role that the EIB has played in Portugal’s development over the last 40 years, financing and supporting hundreds of public and private projects.”
EIB Vice President Ioannis Tsakiris said: “At the European Investment Bank, we believe that everyone should have access to a safe, sustainable, and affordable home.
“Affordable housing is essential not only for social cohesion but also for economic competitiveness, climate resilience, and sustainable urban development.
“With this new financing agreement, we are strengthening our strategic partnership with the Government of Portugal to deliver thousands of homes, to expand access to affordable housing, and Portugal´s efforts to build a more inclusive economy, promote balanced territorial development and contribute to climate action through energy-efficient living.”