KfW Bankengruppe
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Infrastructure Investment Offensive started on 1 April 2009
EUR 3 billion for municipalities in structurally weak areas
KfW Bankengruppe has started its infastructure investment offensive, which is part of Federal Government's package of measures entitled "Job security through more growth". In this framework KfW Bankengruppe extends reduced-interest loans to finance the municipal and social infrastructure of municipalities in structurally weak regions. Loan applications may be submitted directly to KfW.
In the framework of the investment offensive KfW Bankengruppe also offers the programmes "Municipal Investment"and "Social Investment", which are on-lent through commercial banks and address enterprises in predominantly municipal ownership such as municipal utilities and non-profit organisations such as hospital operators.
The infrastructure investment offensive has a total loan volume of EUR 3 billion for the years 2009 and 2010. Federal budget funds are provided to reduce the interest rate during the first five years.
Overview of the programmes that are part of the infrastructure investment offensive:
Municipal Loan Programme – Infrastructure Investment Offensive
- Applicants: Local and municipal authorities, legally dependent companies owned and operated by municipal authorities, special-purpose municipal associations
- Loan term/grace years/fixed-interest period (years): 30/5/5
- Loan volume/maximum loan amount: 100% of the investment costs eligible for financing/no maximum loan amount
- Loan purpose: all investments in the municipal and social infrastructure in structurally weak municipalities (i.e. all municipalities that belong to the Joint Task “Improvement of the Regional Economic Structure” (Joint Task areas) or whose budget is in financial distress or is being put on a sound financial footing).
Social Investment Programme – Infrastructure Investment Offensive
- Applicants: All non-profit organisations including churches
- Loan term/grace years/fixed-interest period (years): 30/5/5
- Loan volume / Maximum loan amount: 100% of the financeable investment costs / EUR 10 million
- Loan purpose: All investments in the municipal and social
infrastructure in the eastern federal states and in den Joint Task
areas in the western federal states including Berlin
Municipal Investment Programme – Infrastructure Investment Offensive
- Applicants: Companies that are majority-owned by municipal
authorities and companies in the context of forfeiting models
Loan term/grace years/fixed-interest period (years): 30/5/5 - Loan volume / Maximum loan amount: 75% of the financeable investment costs / EUR 10 million.
- Loan purpose: All investments in the municipal and social infrastructure in the eastern federal states and in the Joint Task areas in the western federal states including Berlin
1 April 2009
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