Sustainable Urban Development: The Role and Effects of the Urban Development Fund in Slovenia

The urban development fund is planned to finance sustainable urban projects in Slovenia with financial instruments such as loans, guarantees, shares and mezzanine loans. The purpose of the fund is to meet the needs for investments in urban development, which would not be profitable on the market, but have significant development potential. The fund can work in different ways, including a combination of EU funds. The fund will finance projects such as site restoration, water supply, waste management, sustainable mobility, digitization, restoration of cultural heritage, etc. Financing will be provided through various sources, including the capital market, EU funds and cooperation with banks and investors. The effects of the fund include an increase in economic activity, employment and growth in government revenue. Despite the costs of operating the fund, the public financial impact should be positive, as the investments will increase state revenues and improve the financial position of small and medium-sized enterprises. The Urban Development Fund can play an important role in promoting sustainable urban development and increasing economic activity in Slovenia.