The Government and the European Investment Bank (EIB) signed on Monday an initial financing of 500 million euros for the construction and rehabilitation of homes under the 1st Right program, aimed at social housing. This amount corresponds to the first tranche of a total line of 1,500 million euros made available by the EIB.
The financing will be granted with lower interest rates and longer grace periods, according to the Executive. However, municipal councils will need to accommodate part of the investment within their local housing strategies. Francisco Gonçalves, vice-president of Oeiras City Council, warned that alongside the EIB boost comes the need for municipalities to assume part of the cost, stating that "there are municipalities that need EU funding just to have a new sidewalk."
The Minister of Infrastructure and Housing, Miguel Pinto Luz, stated that many municipalities identified housing needs that could not be fully financed by the Recovery and Resilience Plan (PRR), and that this partnership with the EIB will enable better financing, more predictable execution, and accelerate the country's housing response. The Minister of Finance, Joaquim Miranda Sarmento, considered the agreement a relevant step towards strengthening the construction and renovation of public housing in Portugal, seeking to ensure better living conditions for the most vulnerable families.
