Germany's KfW lifts renewable energy credit: minister

15/12/2008 - 12:06

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BERLIN (Reuters) - German state bank KfW is raising the upper limit on credit it makes available for small and medium-sized renewable energy projects, Environment Minister Sigmar Gabriel said on Monday.

The KfW, responsible for supplying revenues to the environment ministry to promote renewable energy, is boosting the credit limit to 50 million euros ($67.33 million) from 20 million euros for such projects, Gabriel said.

The state bank would also extend its lending period to 15 years from eight years, the minister said after meeting KfW and banking representatives.

The new credit measures would be financed through a package of measures already agreed to by the government, Gabriel said.

Germany has agreed to a 500 billion euro bank rescue package to restore confidence in the financial sector and has also pushed through measures to boost investment.

However, the government is under pressure to do more to help Europe's biggest economy withstand a recession.

(Reporting by Hans-Edzard Busemann; editing by Sue Thomas)

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