Prime Minister Pedro Sánchez has announced the creation of a sovereign fund called “España Crece” (“Spain Grows”). This is a large-scale attempt by the state to address the housing crisis using the leverage of the Official Credit Institute (ICO) and private capital.
🏗 Goal: Financing the construction of 15,000 new affordable housing units per year.
💰 Budget: Up to €23 billion is expected to be mobilized.
Structure: ICO will receive a capital injection (partly from European funds) to issue €14 billion in loans, which is expected to attract an additional €9 billion from private investors.
🤝 “Red carpet” for investors: Sánchez stated that the state will roll out the “red carpet” for private capital, with one condition: “not for speculation on the constitutional right to housing, but to create homes.”
🏦 Role of ICO: The institute will be transformed into a full-fledged national development bank. It will offer preferential financing terms (maturities, interest rates) for projects that meet social criteria.
🏗 Goal: Financing the construction of 15,000 new affordable housing units per year.
💰 Budget: Up to €23 billion is expected to be mobilized.
Structure: ICO will receive a capital injection (partly from European funds) to issue €14 billion in loans, which is expected to attract an additional €9 billion from private investors.
🤝 “Red carpet” for investors: Sánchez stated that the state will roll out the “red carpet” for private capital, with one condition: “not for speculation on the constitutional right to housing, but to create homes.”
🏦 Role of ICO: The institute will be transformed into a full-fledged national development bank. It will offer preferential financing terms (maturities, interest rates) for projects that meet social criteria.
