KfW turns 65 - Bankkaufmann

Frankfurt (ots) -

- The Law Concerning KfW came into force on 18 November 1948
- A reliable partner of the economy
- Loans totalling EUR 1.3 trillion handed out since foundation

Sixty-five years ago, in November 1948, the economic council of
West Germany enacted a law founding KfW, thus creating the basis for
sustainable and successful business promotion in Germany. Shortly
thereafter, the promotional bank founded when this law came into
force on 18 November 1948, began working in Frankfurt under its then
name, Kreditanstalt für Wiederaufbau (Reconstruction Loan
Corporation). By acting as a conduit for the financial aid donated by
the Allies under the Marshall Plan, the institution played a key role
in the reconstruction of war-ravaged Germany. KfW's main task has
always remained the same. To this day, its remit is to support
structural change and identify, promote and fund forward-looking
developments in business and society. Since its foundation 65 years
ago, KfW has handed out loans of more than EUR 1.3 trillion for this
purpose.

"The history of KfW is closely interwoven with the economic
development of the Federal Republic of Germany, and impressive proof
that the development bank model is a successful concept. It is a
macroeconomic instrument for securing German competitiveness and
prosperity in Germany and across Europe," said Dr Ulrich Schröder,
CEO of KfW. And he added, "Over the decades, the key pillars of our
success have been a stable partnership with the government and close
cooperation with the credit industry. I would therefore like to thank
our partners. Thanks also go to all our current and former employees,
whose daily dedication has played a key role in this process and
helped KfW meet its promotional mission successfully."

In its first few years, KfW was responsible for funding the
reconstruction of the German economy and helping relieve the lack of
housing after the Second World War. But its promotional mandate soon
expanded beyond Germany's borders. As far back as the early 1950s,
the bank was already promoting export. And at the start of the 1960s,
the Federal Government added the funding of aid projects in
developing nations to its remit.

KfW was particularly sought-after in the 1990s following Germany's
reunification. Its tailored promotional programmes supported the
redevelopment of the eastern Germany and aided the structural
realignment of eastern Germany's corporate sector, while its
residential construction programmes helped renovate millions of
apartments in the former GDR. Most recently, KfW has been involved in
special economic programmes designed to cushion the negative effects
of the global financial crisis on the German economy. Its current
activities focus on promoting small and medium-sized companies,
environmental and climate protection, and efforts to tackle the
effects of demographic change both in Germany and around the world.

One decisive factor in KfW's success was that from the very
beginning it gave out money as loans rather than subsidies. This
meant that once the loans were repaid, the money could be used to
provide yet more loans. As a result, KfW still uses Marshall Plan
money to fund promotional programmes for entrepreneurs and SMEs;
so-called "ERP programmes" (ERP = European Recovery Program, the
official name of the Marshall Plan).

KfW is 80% owned by the Federal Government. The remaining 20% is
held by Germany's regional states. The KfW Group now also has two
subsidiaries: KfW IPEX-Bank and DEG. On 30 September 2013, the KfW
Group had a balance sheet total of EUR 476.4 billion, making it one
of Germany's biggest banks.

Last year, the KfW Group handed out loans worth EUR 73.4 billion.
Thanks to an explicit guarantee by the Federal Government, KfW
refinances more than 90% of its loans with bonds purchased on the
capital markets. This enables KfW to offer loans at favourable
conditions. The KfW Law defines the areas in which it may operate.
Some domestic promotional programmes are also sponsored by budget
funds or KfW's own funds. KfW loans are generally distributed through
the borrowers' banks (on-lending principle), which usually also bear
the risk of credit default.

Further information about the creation and history of KfW can be
found at the following address: https://www.kfw.de/65-Jahre.

Pressekontakt:
KfW, Palmengartenstr. 5 - 9, 60325 Frankfurt
Kommunikation (KOM), Christine Volk,
Tel. +49 (0)69 7431 3876, Fax: +49 (0)69 7431 3266,
E-Mail: presse@kfw.de, Internet: www.kfw.de