German flood damage estimated at €12 billion

The European Investment Bank (EIB) “stands ready” to provide over €1 billion in financial support to help reconstruct after wide-spread flooding in Germany, Hungary and the Czech Republic.

According to a forecast from Fitch Ratings, the flooding is estimated to have caused €12 billion of economic damage in Germany alone. Fitch said the damage was likely to be even costlier than the devastating 2002 floods that hit the same region, with insured losses estimated to reach between €2.5 billion and €3 billion.

EIB President Werner Hoyer said the Bank was considering how it could best help to provide support for urgent reconstruction programmes at local and regional levels, as well as for future flood prevention schemes.

After the floods of 2002, the EIB approved financing worth €1 billion, distributed between the relevant countries based on final demand.

“The EIB is willing to go beyond the amount from 2002, depending on investment demands and if needed,” Mr Hoyer said.