German development bank to invest €10bn in sustainable housing
Germany's state-owned development bank KfW plans to create more affordable and sustainable housing as the country struggles with a growing shortfall of such housing.
More than €10 billion ($10.8 billion) were earmarked for this in the 2024 federal budget, the bank announced on Wednesday - around €5 billion more than was spent last year.
"The creation of sustainable and affordable housing is one of our priorities in 2024," said chief executive Stefan Wintels.
Specifically, this involves new funding for the construction of affordable housing for people who do not benefit from social housing.
According to Wintels, the German government has made €1 billion available for this purpose this year and next year. Details of the funding are currently being worked out.
Following the exceptional year of 2022, the banking group's promotional volume decreased last year. The volume of new business totalled €111.3 billion - compared to €166.9 billion in the previous year.
In 2022, the billions that the government decided to spend on securing energy supplies and relieving the burden on households and companies after the start of the Russian war on Ukraine had caused KfW's promotional volume to skyrocket.
The institute, 80% of which is owned by the German government and 20% by the federal states, provides low-interest loans to small and medium-sized companies, house builders and students in its traditional promotional business.
It also provides export and project financing, promotes developing and emerging countries and the subsidiary KfW Capital for investments in start-ups.
