KfW increases its extraordinary promotion of refugee accommodation in municipalities to EUR 500m

• Interest-free loans with terms of up to 30 years and fixed interest rates for 10 years
• Accommodation to be created for up to 50,000 people

The extraordinary promotion "refugee accommodation" is in great demand in municipalities in Germany. The scheme, which was launched on 6 September 2015 with a volume of EUR 300 million, is part of the "Investment Loans for Municipalities" (IKK) programme. KfW is using this scheme to support cities and municipalities in Germany with interest-free loans for investing in new construction, conversion, renovation or acquisition of accommodation for refugees.

Due to high demand, the financing previously offered was exhausted after just a few days. In view of this situation, KfW has now increased the overall volume of financing available to EUR 500 million. In doing so, up to 50,000 spaces can be created, depending on the type of accommodation. 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 ten years at disbursement. As previously, the applications will be dealt with on a first come, first served basis until the extraordinary promotion is exhausted. Demand for the financing is still very high.

The CEO of KfW, Dr Ulrich Schröder said, "By providing and increasing the extraordinary promotion for creating refugee accommodation, KfW is acting responsibly in an exceptional situation. Our goal is to help the municipalities quickly and flexibly in overcoming one of the greatest challenges of recent years."

When the extraordinary promotion is exhausted, KfW will continue to provide attractive financial products and services for municipal investments relating to accommodating refugees, as part of its Investment Loans for Municipalities (Programme 208).