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Support for the German shipbuilding industry

We manage the CIRR Ship Financing Programme on behalf of the German Federal Government. CIRR stands for "Commercial Interest Reference Rate". The programme supports German shipyards in global competition and strengthens Germany as a shipbuilding location. The top 13 German shipyards alone employ more than 15.000 people.

Such programmes are common around the world including in France, Italy and Finland. With the consent of the German Government, KfW delegated this mandate to the Credit Operations Department of KfW IPEX-Bank on the basis of its expertise and many years of experience in ship financing.


Fixed rate loans based on the CIRR for ships built at a German shipyard

Under the CIRR Ship Financing Programme, buyers of ships may obtain a fixed-rate loan based on the CIRR which applies for the entire tenor of the loan. This minimum interest rate is prescribed by the OECD for officially supported financings in order to ensure competitive neutrality. In order to qualify, buyers must order the ships from a German shipyard.

Optional refinancing from KfW

For the financing bank, the CIRR Ship Financing Programme provides the following incentives: First, the interest rate risk of the loan is borne by the Federal Republic during the entire term. Second, this programme gives the bank access to favourable refinancing from KfW without straining its own liquidity. Although the possibility to refinance itself through KfW is optional, it is generally exercised by the banks.

The experts at KfW IPEX-Bank advise the shipping companies, shipyards and financing banks already in the pre-financing stage. They analyse the applications and conclude the interest make-up and/or refinancing agreements.

Structure of ship financing CIRR