DIGHPO Box 611

1200 AP HilversumThe Netherlands

+31 (0)35-6268383www.digh.nl

Central and Eastern European experiences on financing social housing programs

Marie-Odile ZandersProject Coordinator CEE

‘Market’ for DIGH finance

affordable housing-new/reconstruction

-rental/owner occupied

SEE/CEE NEEDS ON HOUSING MARKET

EXISTING FINANCINGCAPACITY

middleincomes

topmortgages

Some countries:subsidy on Interest level

Some countries:LimitedState budget financing

THREE CORNERSTONES

CONSTRUCTIONCOSTS (per m2)

FINANCIALARRANGEMENTS

AFFORDABILITY

THREE CORNERSTONES

HOUSINGPOLICY

CONSTRUCTIONCOSTS (per m2)

FINANCIALARRANGEMENTS

AFFORDABILITY

What does DIGH do?• supports urban regeneration, affordable housing and

energy efficiency activities benefiting middle and lower income families outside the Netherlands

• ‘gets the wheel turning’ for affordable housing sector

• finances or guarantees land, development cost, infrastructure, construction, mortgages, energy efficiency

• current loan portfolio of 55 million Euro (backed by AAA guarantees from Dutch social housing inst.)

DIGH in CEE region: 2004 - now

• Portfolio worth EUR 13,5 M covering 18 projects

• Focus on: New built housing (social rental / for sale)Renovation(energy-efficiency / basic

upgrade)

• Loans provided in: Armenia, Bulgaria, Croatia, Hungary, Latvia, Macedonia, Montenegro, Romania and Ukraine

DIGH borrowers for energy efficiency projects

• Individual / groups of condominiums

• Energy Servicing Companies (ESCO’s)

• through micro-finance institutions (MFI’s)

• in partnership with local banks (with back-up from IFI’s: IFC / KFW / USAID-DCA)

Residential EE renovation: experiences in Ukraine through ESCO-model

Residential EE renovation: experiences in Latvia through ESCO-model

Basic residential EE renovation: through NGO-MFI model

Key issues for sustainable project implementation

• Status institutional framework: legal, financial, etc.

• Who develops a pipeline of projects and how are they financed?

• Who gains the benefits of the renovation?

THANK YOU & Feel free to contact us!

General DIGH issues

+ 31 35 626 8383 or info@digh.nl

For Central & Eastern Europe

marie-odile.zanders@digh.nl