This is mainly because this business activity did not take place under market conditions within the protected area of a development bank secured by the German state and thus created an inadmissible competitive advantage.

Under the terms of the agreement, the KfW may use the refinancing benefits in the form of federal guarantees only for its original promotional activities as defined in a list of tasks.

All other activities were, according to the agreement, spun off until the beginning of 2008 into a privately organized credit institution, which operates under the competitive conditions of the market.

The focus is on the provision of medium and long-term earmarked financing to support the export economy, the development of economic and social infrastructure, and environmental and climate protection projects.

[4] The KfW IPEX-Bank is active in the business sectors Basic Industry, Manufacturing, Telecommunications, Trade & Health, Energy & Environment, Shipping & Ports, Aviation & Airports, Rail & Road, Construction & PPP.

The Energy and Environment, Industry and Services and Aviation, Mobility & Transport business lines accounted for the largest share of on-balance sheet lending volume, totalling EUR 15.2 billion (56%).