06/28/2017 | Press release | Distributed by Public on 07/03/2017 07:36
PARIS - Malita Investments plc has signed a finance contract with the European Investment Bank and the Council of Europe Development Bank at very competitive rates for a period of 25 years. The financing will go towards the construction of affordable housing units.
The contract was signed at the Ministry of Finance in Valletta by Kenneth Farrugia, Chairman, Malita Investments plc with Rainer Lovato, Principal Country Manager, Council of Europe Development Bank and Miguel Morgado, European Investment Bank director for Malta in the presence of Hon Michael Falzon, Minister for the family, children's rights and social solidarity and Hon Edward Scicluna, Minister for finance.
Through this financing agreement, Malita will develop circa 680 housing units consisting of 1, 2 and 3 bedroom apartments with the total cost of development including finishes amounting to €58 million. The units will be constructed in 16 different sites across Malta and will address a shortage of affordable housing units which are available to persons who cannot afford to purchase their own residential home or lease the above average and high-end quality apartments that are being introduced in the market.
Addressing the signing ceremony Dario Scannapieco, EIB Vice-president responsible for Malta said that, 'The project will contribute to the alleviation of the current shortages in social housing supply in Malta and generate significant positive social benefits in deprived communities. The EIB is proud to be a partner of the Maltese Government, Malita Investments and the Social Housing Authority in this project, which will be the first social housing operation in Malta for the EIB and confirms the commitment of EIB towards housing investment'.
Commenting on the signing, CEB Vice-Governor for Social Development Strategy Rosa María Sánchez-Yebra Alonso said that, 'Providing vulnerable population groups with access to affordable housing is one of the CEB's priority areas of activity. I am very pleased that this loan will increase the supply of housing in Malta, helping in particular those most in need. I am also glad that the new dwellings will meet modern, energy-efficient standards, which will have important environmental benefits'.
Set up in 1956, the CEB (Council of Europe Development Bank) has 41 member states. Twenty-two Central, Eastern and South Eastern European countries, forming the Bank's target countries, are listed among the member states. As a major instrument of the policy of solidarity in Europe, the Bank finances social projects by making available resources raised in conditions reflecting the quality of its rating (Aa1 with Moody's, outlook stable, AA+ with Standard & Poor's, outlook stable and AA+ with Fitch Ratings, outlook stable). It thus grants loans to its member states, and to financial institutions and local authorities in its member states for the financing of projects in the social sector, in accordance with its Articles of Agreement.