KfW and Federal Ministry of Family Affairs – Over 27,000 additional places at German childcare centres

• Successful conclusion of KfW loan programme for childcare centres for under threes
• Loans totalling EUR 550 million extended
• Over 27,000 additional places financed

The KfW loan products with reduced interest rates sponsored by the German Federal Ministry of Family Affairs, Senior Citizens, Women and Youth (BMFSFJ) for expanding pre-kindergarten facilities for children aged under three, are about to be exhausted – ahead of time. Loans totalling approx. EUR 550 million have been granted to municipalities, municipal and non-profit organisations and private operators since the products were launched on 1 February 2013. In doing so, more than 27,000 places at childcare centres have been financed. A total of EUR 350 million was initially available when the product was launched. Due to high demand, and as agreed with the BMFSFJ, the volume was increased to approx. EUR 550 million.

"The KfW products are a key element of successfully expanding childcare provision," explains Kristina Schröder, Federal Minister for Family Affairs, Senior Citizens, Women and Youth. "A large number of cities and municipalities have participated in the programme offered by KfW and the German Federal Ministry for Family Affairs. I am very pleased with this, as it has certainly aided many municipalities to speed efforts up as the deadline for the legal entitlement of childcare provision has approached."

"As a promotional bank we were able to cater for the rush of applications from municipalities and private daycare centre operators, and in doing so make our contribution towards expanding childcare provision. And now, after the programmes for the special products have expired, municipalities and private operators can still apply for favourable financing for childcare facility expansion via our standard programmes," says Dr. Ulrich Schröder, Chief Executive Officer at KfW.

Both of the loan product programmes for municipalities and municipal operators which have now expired, are an integral part of the Federal Government's ten-point plan aimed at increasing Germany's childcare provision in 2013. The programmes were directed at supporting municipalities in fulfilling their legal obligation to provide parents of children under three with a place for their child at a pre-kindergarten facility, as of 1 August 2013.

KfW, as a reliable promotional bank, still offers attractive financing products for investments in childcare provision after the conclusion of the federal reduced interest rate loan programme for childcare expansion. For municipalities, the interest rates for the KfW product no. 208 "Investment Loans for Municipalities" (IKK), currently start at an effective 1.44%. Municipal operators and non-profit organisations can also obtain financing for childcare facility expansion with KfW's product no. 148 "Investment Loans for Municipal and Social Enterprises" (IKU), starting at a current effective rate of 2.27% (as at: 19.11.2013).

For more detailed information on the promotional products please go to www.kfw.de/infrastruktur.