Nursing homes hit by new bank rules, consider issuing bonds

Healthcare institutions are finding it difficult to get financing for investments and 20% have to delay plans because of tough banking rules, radio station BNR said on Monday.

Research by sector organisation Actiz, which at the weekend claimed some 50,000 healthcare jobs are under threat from the government’s decision to decentralise services, shows banks are also more restricted in their lending because of new capital requirements.

‘Until recently, banks did not run many risks,’ said spokeswoman Bernadet Naber on BNR radio. ‘We had enough clients and our care homes were full.That has changed. People are staying home longer, we have lower occupancy rates and have been given more responsibility for financing.’

New projects

For example, the owner of the Roomburgh nursing home in Leiden needs €7.5m to build new accommodation for 30 people currently living in outdated rooms.

‘Banks do not want to lend any money for this sort of project,’ director Ruud Stuurman told the broadcaster.

Naber says care institutions are now looking at alternative sources of funding such as issuing bonds. ‘Bank loans remain essential but some 80% are looking for alternative sources to complete their funding needs. Bonds could be a part of that.’

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