IMPLEMENTATION LEVEL

NFI

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
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Inception date: 08 Jul 2016 | Removal date: open ended
Still in force

State loan

KfW announced it would provide a loan together with the private banks BayernLB and Landesbank Baden-Württemberg for the German IT company T-Systems for the construction of a data centre. The press release did not provide the amount financed by KfW but the overall loan is in the "triple-digit million euros". The deal has a leasing structure and will have a duration of 17 years.

The financing falls under KfW's Energy Efficiency Programme and comes after the increased " need for cloud solutions that comply with German data protection legislation". The project will increase the data centre's capacity by 45,000 serves while fulfilling "most stringent requirements in terms of data security and energy efficiency". The standing of the beneficiary in the international market was specifically mentioned in the accompanying press release, casting doubt on any claims that this measure would not have cross-border consequences. 

The CEO of T-Systems was quoted in the press release saying " The financing for it from the banking consortium that was established (...) is a key element."

A state measure in the GTA database is assessed solely in terms of the extent to which its implementation affects the extent of discrimination against foreign commercial interests. On this metric, this trade finance affects the conditions of competition and foreign firms competing in the overseas market in question.

AFFECTED COUNTRIES

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TABLE
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AFFECTED SECTORS AND PRODUCTS

831 Management consulting & management services; ITC services
842 Internet telecommunications services

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