State development bank Banco Português de Fomento will launch a €1.5 billion credit guarantee line this month to support commercial bank loans for affordable housing projects. The program provides financing guarantees for terms up to 30 years to housing cooperatives and construction companies developing homes for sale or rent. Executive board member Teresa Fiúza announced the initiative to increase access to credit and expand residential construction.
Banco de Fomento Allocates €1.5 Billion for Affordable Housing
Thursday, 5 November 2026AI summary
Context & Explainers
The Development Bank in Portugal refers to the state-backed development institution, Banco Português de Fomento (Portuguese Development Bank), which provides financing tools, guarantees and co-investment for strategic public-interest projects. In the housing context it can issue guarantees and support loans for construction or refurbishment of affordable homes and for housing cooperatives, so budgeted sums from the bank directly affect affordable housing schemes.
