Commerzbank and Kfw join forces to launch fund

COMMERZBANK and the German state development bank KfW are planning to launch a massive fund for Germany’s critical small and mid-sized companies dubbed collectively the Mittelstand.

The administrative council of the KfW is due to meet on 10 June to decide on the fund, whose volume would be between €300m-€500m, according to the Financial Times Deutschland.

“We view it positively, since it would close a financing gap for the Mittelstand,” a spokeswoman from the German Economy Ministry said. KfW is entirely owned by the state, while a quarter of the shares in Commerzbank are owned by Germany.