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