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25 years of German unity: KfW provided around EUR 194 billion of funding towards the reconstruction of the new eastern German states
Frankfurt am Main (ots) -
- Every tenth euro invested in Eastern Germany since 1990 came from KfW - Focus on the promotion of companies and start-ups alongside housing refurbishment and environmental investments
The political process that started in the "autumn of change" in 1989 culminated 25 years ago, on 3 October 1990, in the German reunification. At the same time, KfW's founding name "Kreditanstalt für Wiederaufbau" (Reconstruction Loan Corporation) again reflected its aim: redeveloping housing, infrastructure and environment in Eastern Germany, rebuilding the economy and establishing a healthy SME sector were on the agenda. And KfW made a great contribution to this effort: around EUR 194 billion have been invested in the new eastern German states in the past quarter of a century, mainly in the form of low-interest promotional loans.
"We are proud of the fact that KfW made a substantial contribution to rebuilding Eastern Germany and the success of the German reunification. Every tenth euro that has been invested in the new federal states since 1990 came from KfW. Our promotional funds have driven the sustainable structural change in Eastern Germany and played a key role in the historic economic upswing that was achieved there," said Dr Ulrich Schröder, CEO of the KfW Group.
As early as one week after the borders were opened in 1989, KfW had already developed first concepts for a fundamental modernisation of the GDR; the promotional bank initiated a unique reconstruction programme in the shortest possible time.
The majority of KfW funds were used to promote business start-ups and companies in Eastern Germany. There were hardly any private companies in the GDR, but since 1990 tens of thousands of trade businesses, retailers, service companies and commercial SMEs have been established and millions of jobs have been created and secured. In total, KfW has provided around EUR 104 billion in the past 25 years to promote trade and industry in Eastern Germany. Out of this amount, EUR 73 billion pertained to the promotion of start-ups and company investments, EUR 31 billion to industrial pollution control and climate protection measures.
The second of KfW's priority areas was the modernisation and refurbishment of existing housing in Eastern Germany. Around 5 million housing units were repaired using KfW funds, which equates to significantly more than every second home in the new federal states. In summary, promotional loans amounting to roughly EUR 68 billion have been granted since 1990. Repairing the dismal building structures in many eastern German states and maintaining the historic cityscape of entire neighbourhoods, for instance, were only made possible by KfW funding.
The shared infrastructure in Eastern Germany has benefited from a total of EUR 22 billion of KfW funding in the past quarter of a century. These funds were used, for example, for the reconstruction of sewage plants, air pollution control measures, and the rehabilitation of waste water channels and waste disposal sites.
Note: Press material can be downloaded at www.kfw.de/wiedervereinigung.