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Brandenburg Launches 1% ILB Loans for Municipal Projects Through 2029

The state will pay interest above 1% to lower borrowing costs for towns, cities and counties.

Overview

  • The program provides ILB loans capped at 1% interest with a total volume of up to €500 million running until 2029.
  • Municipalities may borrow up to €10 million per year, while districts and independent cities may borrow up to €15 million.
  • Standard maturities are 10 years with repayment, extendable to a maximum of 20 years.
  • Eligible investments include bridges, roads, cycle paths, climate projects, childcare facilities, schools and public transport.
  • The package complements the federal infrastructure special fund, with about €1.5 billion earmarked for municipalities and €50 million in state grants planned.