IFRRU 2020: Financing Requests Reach €750m

12 February 2018

A little more than a month and a half after applications were opened for the Financial Instrument for Urban Rehabilitation and Revitalization (IFRRU) 2020, the total number of requests for funding has already reached approximately 750 million euros.

According to the Institute of Housing and Urban Rehabilitation (IHRU), the outstanding loan applications to the participating banks account for roughly 200 rehabilitation projects in urban centres in regions throughout the country.

Of these, 15 applications for financing have already been formalised, amounting to 65 million euros, of which two contracts have already been finalised.

The first urban rehabilitation project to receive financing, in the amount of 645,000 euros, is located in the parish of Santa Maria Maior, in Funchal.

The IFRRU 2020 program is expected to extend a total of €1.4 billion in loans for interventions aimed at the complete rehabilitation of buildings aged 30 years or more, abandoned spaces and industrial units. Also included are projects that envisage the complete reconstruction of private social housing.

The financial instrument aims at the concession of loans on more advantageous terms than those offered in the market (i.e. interest rates, maturities and grace periods). Of the total amount, €700 million comes from public (national and Community) funds and the remaining €700 million are to be made available by three banks (Santander Totta, BPI, Millennium BCP).

The financing amounts have a limit of 20 million euros and include extended deadlines – 20-year maturities for rentals and seven for sale – and grace periods of up to four years.

Original Story: Construir

Translation: Richard Turner