ANNOUNCEMENT 10 Jan 2020
In January 2020, KfW established the Africa CIRR export financing programme on behalf of the Federal Ministry for Economic Affairs and Energy (BMWi).
NUMBER OF INTERVENTIONS
KfW, press release of 10 January 2020, KfW launches Africa CIRR export financing programme: https://www.kfw.de/KfW-Group/Newsroom/Latest-News/News-Details_560768.html
KfW, Information Sheet Africa-CIRR, Bank CIRR refinancing of export transactions to Africa: https://www.kfw-ipex-bank.de/PDF/%C3%9Cber-die-KfW-IPEX-Bank/Unsere-Rolle-in-der-Au%C3%9Fenwirtschaftsf%C3%B6rderung/Afrika-CIRR/2020-01-Information-Sheet-Africa-CIRR-2.pdf
In January 2020, the KfW IPEX-Bank, on behalf of the Federal Ministry for Economic Affairs and Energy (BMWi), established the Africa CIRR export financing programme to support German exports to Africa.
On 10 January 2020, the KfW IPEX-Bank announced establishing the Africa CIRR export financing programme on behalf of the Federal Ministry for Economic Affairs and Energy (BMWi). Under the programme, KfW will provide financing in the form of refinancing to eligible banks to cover export loans granted to African buyers of German export goods.
According to the KfW, the loan amount is normally above EUR 85 million, however, smaller loan sizes are not excluded from financial support.
The interest rate of the financed loan is equal to the CIRR rate. The KfW, in this context, noted: "Under the programme, the Commercial Interest Reference Rate (below “CIRR rate”) is applied using funds from the German federal budget. This rate is a fixed interest rate that the OECD sets for its member states on a monthly basis as a minimum reference rate for officially supported financing of capital goods exports and related services. ... The setting of interest rates under the Africa CIRR programme is subject to the minimum rate regulation of the Arrangement on Officially Supported Export Credits (OECD Consensus)."
KfW further noted that the: "Loans which are refinanced with the help of the Africa CIRR contain budget funds which constitute subsidies in the meaning of the German Subsidies Act (SubvG). Relevant for subsidies in the meaning of Section 264 of the German Penal Code (StGB) are such facts as are relevant for granting or maintaining the buyer credit cover provided by the Federal Republic and/or for the use or retention of the budget funds to refinance the export transaction financed by the bank.
A state act in the GTA database is assessed solely in terms of the extent to which its implementation affects foreign commercial interests. On this metric, the investment support granted here is discriminatory.