KfW helping municipalities finance accommodation for refugees

• Extraordinary promotion of "refugee accommodation" offers interest-free loans with terms of up to 30 years and fixed interest rates for 10 years
• Total available volume of EUR 300 million
• Accommodation provided for up to 30,000 people

KfW is helping German municipalities accommodate refugees at short notice with the extraordinary promotion of "refugee accommodation". Effective immediately, cities and municipalities can take out interest-free loans from KfW to invest in the new construction, conversion, renovation or acquisition of accommodation for refugees. The total volume of extraordinary promotion available amounts to EUR 300 million. Depending on the type of accommodation, this can be used to provide spaces for up to 30,000 people. KfW is using its existing "Investment Loans for Municipalities” (IKK) programme for this extraordinary promotion. The municipalities can opt for terms of 10, 20 or 30 years. The interest rate on all of the loans is 0.0%, and is set for 10 years. Loans are approved in the order that the applications for them are received. KfW will make a decision on providing additional financing for the programme based on the level of demand.

The CEO of KfW Dr Ulrich Schröder said, "The high number of people seeking refuge in Germany also represents a financial challenge for our country. At the same time, however, appropriate accommodation forms the basis for integration into society. That is why KfW is helping the municipalities provide suitable accommodation for refugees."

KfW has already used special programmes in the past (for example its economic programme) to quickly and effectively help overcome particular challenges.