German bank invests EUR 700m in development

21st April 2006, Comments 0 comments

21 April 2006, COLOGNE - Germany's main development-aid lender DEG said Thursday it invested 700 million euros (860 million dollars) last year in developing and newly industrialized nations, mainly in Asia.

21 April 2006

COLOGNE - Germany's main development-aid lender DEG said Thursday it invested 700 million euros (860 million dollars) last year in developing and newly industrialized nations, mainly in Asia.

That represented a gain of 100 million euros on the previous year's new loans.

DEG's entire loan book, comprising both long-term loans and equity investments, grew to 2.75 billion euros (3.39 billion dollars) in 2005, from 2.5 billion euros the year before. DEG is a subsidiary of the federal government's main banking group, KfW.

The Cologne-based bank recorded a surplus of nearly 119 million euros last year, largely thanks to capital gains through sales of shares it held in two projects in Africa and eastern Europe. DEG said its current new business focus is on financial sectors in India and China.

The new companies that DEG was financing would create jobs, improve those countries' tax intake and earn foreign exchange.

DPA

Subject: German news

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