KfW, Germany’S Development Bank Will Provide Loan Support to Metro System for Nagpur [ Current Affairs ]

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About Germany’s bank KfW: KfW is German government owned developmental bank located in Frankfurt. KfW stands for Kreditanstalt fur Wiederaufbau that means Reconstruction Credit Institute.

  • It was established after World War II in 1948.
  • Banking group of KfW insurances over 90 % of its appropriating needs in the capital markets, mainly through bonds which guaranteed by its federal government.

Groups of KfW:

  • KfW Forderbank (Promotional Bank): aimed for protection of houses and environment in Germany.
  • KfW Mittelstandsbank: aimed to translate small and medium enterprises.
  • KfW Entwicklungsbank (development Bank): aimed to provide finance to government.
  • KfW IPEX-Bank is working in project finance and corporate finance for German and European export businesses.

Achievements of KfW Bank:

  • KfW named in “World’s 50 Safest Banks 2014” by Global Finance.

About providing loan to metro system:

  • KfW, Germany’s Development Bank will provide loan of Rs. 3750 crore for the present metro system for Nagpur of India.
  • This loan agreement was signed by S. Selvaraj who is Joint Secretary of Department of Economic Affairs and Roland Siller who is Director General of KfW in New Delhi.
  • This loan period is decided for 20 years with a suspension of 5 years and expense will be based on the progress of the project over three years.
  • This project will be executed by Nagpur Metro Rail Corporation Limited with total estimate of 8, 680 crore rupees.

- Published on: April 4, 2016