KfW increases assistance programme for municipalities to accommodate refugees to EUR 500 million

• “Special Refugee Facilities Programme” under the umbrella of the IKK Investment Loans for Municipalities programme (208)
• Maximum loan amount EUR 10 million, reduced interest rate

KfW is increasing its low-interest loan programme by EUR 250 million to help cities and communities to accommodate refugees. This brings the total available volume to EUR 500 million. The programme was launched on 11 March and has been met with high demand. Just a few days after the launch of the programme, KfW received a total of 46 loan applications with a volume of lending totalling around EUR 235 million.

The increased special funding for municipalities runs under the established IKK Investment Loans for Municipalities programme (208) and is furnished with a reduced interest rate, which is currently -0.50%. The term of the special programme is limited and runs until 31 December 2022, unless the programme volume is fully utilised before that point. From 22 March 2022, the maximum loan amount is generally EUR 10 million.

Stefan Wintels, Chief Executive Officer of KfW, said: “As the terrible war in Ukraine continues, more and more people are forced to flee – including to Germany. KfW will not abandon municipalities in their efforts to take in refugees. The high demand for our assistance programme shows that we were right to act quickly and to now increase the volume so as to provide financial support on a broader basis.”

More information can be found at:
IKK Investitionskredit Kommunen (available in German only)