Potsdam, Germany  - One of Germany's 16 states is to lend the Jewish community money to build a synagogue in Potsdam, the old royal city that is now an outer suburb of Berlin, officials said Tuesday.

The community will be asked to repay the cost from donations after the 5-million-euro (6.5-million-euro) house of worship is completed at the end of 2012. The state of Brandenburg is to donate a plot of land in the heart of Potsdam, which is its state capital.

The loan-funding plan was approved by the Brandenburg government on Tuesday. The state signed an agreement with the community in 2005, which included a commitment to support the building project.

Making amends for the Holocaust, German authorities have regularly helped Jewish communities rebuild synagogues and schools.

Potsdam was once the main home of the kings of Prussia and the kaisers. (dpa)