Germany

Germany

Soft loans abroad

Government controlled low interest credit provided by Germany's two national development banks has been a cornerstone of German wind power development (Windpower Monthly, March 2002). Similar financing advantages are available to projects developed abroad through the environment foreign program of the Kreditanstalt für Wiederaufbau (KfW). Not only can the program grant low interest loans to projects across the national border which improve the environment in Germany, but also to projects further abroad undertaken by German companies.

The conditions for environment projects are the same as those for KfW's program for medium sized companies abroad except that interest rates are 0.25% lower for Euro loans and 0.15% lower for loans in other currencies. Companies with an annual turnover of less than EUR 50 million can receive cheap credits amounting to 75% of the investment; those with a turnover exceeding EUR 50 million for up to two-thirds of the investment. Cheap loans are limited to EUR 5 million but can exceed this figure if the applicant has an annual turnover not exceeding EUR 50 million. Effective rates of interest are currently 5.66% for a 10 year loan and 5.73% for 20 years.

Have you registered with us yet?

Register now to enjoy more articles
and free email bulletins.

Sign up now
Already registered?
Sign in

Windpower Monthly Events


Latest Jobs