Reykjavik approves 25 million euro loan for school repairs

Reykjavik city council has approved borrowing up to €25 million from the Council of Europe Development Bank to fund maintenance at schools and other facilities, mbl.is reported. The sum is equivalent to about 3.4 billion Icelandic krónur.

The borrowing will draw on a credit line under an agreement signed with the bank in 2024 for maintenance work at primary schools, preschools and after-school facilities. The agreement allows the city to borrow up to €100 million in total.

Since 2023, the city has invested about 21.6 billion krónur in the programme, according to a statement by representatives of the governing majority on the city council. It has so far drawn €35 million from the credit line: €16 million in December 2024 and €19 million in December 2025. That leaves €65 million available under the agreement.

The mayor’s proposal says investment in the maintenance programme totalled 4.8 billion krónur in 2023, 5 billion in 2024 and 6.8 billion in 2025. About 5 billion krónur has been invested so far this year.

The governing majority said the loan would make use of favourable financing to improve school buildings and provide a safe environment for children and staff. The borrowing is included in the city’s financial plan.