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    Kommuninvest Launches Loans for Social Sustainability

    Stockholm (NordSIP) – Following the announcement of their creation at the end of August, Kommuninvest officially launched its Loans for Social Sustainability this week. According to an interview with Björn Bergstrand, head of sustainability at Kommuninvest, the first such loans were provided to Botkyrkabyggen and AB Eidar, the real estate company of the city of Trollhättan in Västra Götaland County. Kommuninvet is also processing two more loan applications.

    The initial loans are still part of the pilot phase, according to the municipal agency. If the trial phase is successful, Kommuninvest hopes to start offering Loans for Social Sustainability will be offered to all of its members of Kommuninvest.

    According to Bergstrand, the Botkyrkabyggen loan will be used to fund renovations of 380 homes in Fittja and Storvreten. For other investments that will now be financed with Loans for Social Sustainability, the primary goal is to increase housing for socio-economically vulnerable groups and increased tenant influence, with zero tolerance for illegal subletting. Eidar’s loan will be used to fund the construction of housing company’s head office, which has been moved to the Lextorp district to create a positive environment around Granngården Centrum, which has been deserted several years and has become unsafe as a result. According to Bergstrand, Eidar’s choice to establish itself in the area has improved security conditions in the area, which has allowed revitalised the area, which now includes a health centre, pharmacy, and restaurant and is now hosts hundreds of workers.

    The challenge with the social sustainability loans was to create a structure that is flexible and easy to handle but at the same time ensures high quality, Bergstrand explains. Inevitably the process is more demanding than traditional loans and requires more dialogue between Kommuninvest, its members and other partners, he explains.

    Image Courtesy of Kommuninvest

    Filipe Albuquerque
    Filipe is an economist with 8 years of experience in macroeconomic and financial analysis for the Economist Intelligence Unit, the UN World Institute for Development Economic Research, the Stockholm School of Economics and the School of Oriental and African Studies. Filipe holds a MSc in European Political Economy from the LSE and a MSc in Economics from the University of London, where he currently is a PhD candidate.

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