Press Release from 2021-07-23 / Group, Domestic Promotion
KfW launches flood assistance for municipalities, municipal enterprises and non-profit organisations
- EUR 500 million for municipalities to remedy flood damage
- KfW to subsidise interest rate of -1.00% for the municipal investment loan programme
- Loan offering for municipal companies and non-profit organisations
KfW is preparing at short notice an assistance programme of EUR 500 million for municipalities in the German federal states affected by flooding. Starting 28 July, cities and communities in North Rhine-Westphalia, Rhineland-Palatinate, Bavaria and Saxony will receive access to KfW’s “Municipal Investment Loan” with a term of 20 years and an interest rate of -1.00% subsidised by KfW for eliminating damage caused by flooding. Applications from the “IKK Special Programme for Eliminating Flood Damage 2021” can be submitted until 30 June 2022. The programme also provides access to a working capital loan from KfW’s “Investment Loan for Municipal Enterprises” programme with a term of 10 years for municipally-funded companies and non-profit organisations to eliminate flood damage.
KfW’s intention is to supplement the German Federal Government’s support measures for the affected states, which are offered though the respective aide programmes for affected private individuals and companies via the promotional institutions of the federal states.
KfW’s Chief Executive Officer, Dr Günther Bräunig, stated: “I am shaken by the human suffering and enormous material damages caused by this flooding. Overcoming this catastrophe is a challenge for our entire society. In situations like this, it is good that Germany has a highly developed and differentiated support system with its promotional institutions of the federal states, KfW and the German banking system. Now this system once again needs to prove what it is capable of doing. KfW is taking responsibility and is supporting infrastructure reconstruction in the affected municipalities using its own earnings and tailored promotional instruments.”