OREANDA-NEWS. The German Federal Ministry of Family Affairs, Senior Citizens, Women and Youth (BMFSFJ) and KfW Bankengruppe are launching two new promotional programmes with reduced interest rates for expanding childcare provision. Between 2013 and 2015, KfW will provide loans totalling EUR 350 million to municipalities and other daycare centre operators to finance the expansion. The Family Ministry will support the programmes by providing an interest rate reduction. The support is part of the Federal Government's ten-point plan for 2013 aimed at increasing Germany's supply of pre-kindergarten facilities.

Loans from the "Investment Loans for Municipalities - Childcare Expansion" (IKK) programme are available to municipalities which apply for loans directly from KfW. Municipal and non-profit organisations, natural persons and other investors who operate public or private youth welfare facilities or who work as childminders in day facilities and are trained in childcare, apply for loans through the promotional programme "Investment Loans for Municipal Enterprises - Childcare Expansion" (IKU) through their regular bank. The sub-loan interest rates for the IKK begin with 0.10 % p. a. and with the IKU at 1.00 % p.a.

Investments eligible for funding include the construction of new buildings, conversions, reconstructions and refurbishments as well as renovation and modernisation measures and investments in equipment. The purchase of property and real estate in order to build new childcare facilities for children under three year of age are eligible for financing.

In addition, stakeholders in childcare can obtain financing for planned investments under KfW's existing promotional programmes for municipal and commercial enterprises, such as the programme families "Investment Loans for Municipalities" (IKK), "Investment Loans for Municipal Enterprises" (IKU) and "Investment Loans for Social Organisations" (IKS).