The German banking group of the state development bank Kreditanstalt fur Wiederaufbau (KfW), KfW Bankengruppe, has joined forces with public-sector regional bank Landesbank Rheinland-Pfalz (LRP) in creating a Ђ15m global loan for small- and medium-sized enterprises (SMEs).
The loan, which will be available through the savings bank, comes in response to the perceived difficulty for SMEs in acquiring loans, although this is said to have eased somewhat.
The maximum amount of the low-interest loans, with maturity periods varying between three and eight years, will be Ђ125,000.
Similar co-operation agreements with other public-sector regional banks (Landesbanken) are expected, with talks reported to be currently under way with Norddeutsche Landesbank (NordLB).
KfW has also indicated that similar arrangements are possible with Germany's private and co-operative banks.
Source: Handelsblatt
