The City of Leipzig is to receive a loan of 125 million euros from the Council of Europe Development Bank (CEB) for the expansion of its social infrastructure. The corresponding agreement was signed by Finance Mayor Torsten Bonew (CDU) and CEB Vice Governor Johannes Böhmer, as announced by the development bank. The money will be used to expand and modernize the educational infrastructure and temporary accommodation for refugees and homeless people.
This is the bank's first direct loan to the city. Among other things, new buildings and renovations of schools in socially disadvantaged districts are planned. In total, more than 8,400 pupils are set to benefit. The creation of around 900 temporary accommodations is also planned.
Growth poses a social test for the city
Leipzig's population has reportedly grown by around 25 percent since 2010. The rising population poses major challenges for the city, particularly in the areas of education and housing for vulnerable groups. According to the CEB, it sees the project as an important contribution to the social infrastructure in a growing, diverse city.
The bank had previously worked with Leipzig institutions such as the housing and building society and the St. Georg Municipal Hospital.
The Development Bank through the ages
The Council of Europe, based in Strasbourg, monitors compliance with human rights in its 46 member states. Its development bank is financed by 43 of the states, including Germany. It was founded after the Second World War to finance refugee projects. Today, it supports sustainable growth, the integration of refugees and climate protection projects with loans.
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