Home » Business » Thuringia’s Development Bank to Expand Loan Programs with Increase in Equity Capital

Thuringia’s Development Bank to Expand Loan Programs with Increase in Equity Capital

Erfurt (dpa/th) – Thuringia’s development bank should be given more financial leeway to expand its loan programs. The state should now work to ensure that more low-interest loans are available for municipal investments, restructuring the economy and families building and purchasing their own homes, explained the parliamentary managing director of the CDU parliamentary group, Andreas Bühl, on Monday in Erfurt.

The equity capital of the development bank is to be increased by 50 million euros. The red-red-green government coalition and the opposition CDU parliamentary group agreed on this during the negotiations on the 2024 state budget.

According to Bühl, the increase in equity capital enables the development bank to activate a loan volume of around half a billion euros. “In times when public finances are becoming tighter, this is an important stimulus,” he explained. The aim of the CDU parliamentary group, which had submitted a corresponding application to the state parliament, was, among other things, a municipal investment fund. Municipal infrastructure projects should be supported through low-interest loans and non-repayable allocations, according to the CDU demand. This is also a reaction to the investment backlog in cities, municipalities and districts, which amounts to around one billion euros annually.

According to Bühl, investments by companies in converting their energy supply or increasing energy efficiency should also be supported. Families who want to own their own home or have created their own home in recent years should be given the option of reduced-interest loans.

© dpa-infocom, dpa:240101-99-460323/2

2024-01-01 11:42:35
#CDU #Thuringian #development #bank #receives #capital #state

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.