The rate of borrowing for the implementation of energy-efficient renovations in school facilities is now fixed at 0% thanks to an agreement between the European Investment Bank (EIB) and Luxembourg state.
In the framework of the financial cooperation between the EIB and Luxembourg, the two sides signed a financing contract worth €300 million in December 2015.
The first instalment of €150 million was subsequently paid on 18 July 2017. The capital will be repaid on 18 July 2022. In accordance with the agreement concluded with the EIB, the financing is intended for the energy-efficient renovations of educational infrastructures in Luxembourg.
Luxembourg Minister of Finance Pierre Gramegna commented that: “Thanks to the agreement with the EIB, the Luxembourg state is diversifying its sources of financing and is now borrowing at a fixed rate of 0.00%, compared with 4.56% loan of 132 million signed in 2007 and which has just been repaid in May 2017. The government is thus pursuing a responsible management of public finances while continuing to maintain investments in infrastructure at historically high levels.”
The operation forms part of the implementation of the COP21 agreements.