1961 KfW Law revised, extending its range of objectives to the development and promotion of the economy. Expands a self-funding program. A great many small and medium enterprises are eligible, being those with sales of DM 1.0 billion or less. Other schemes are available for larger companies. The total amount of financing KfW provided in 1998 was DM 62.4 billion.
State governments have lending and guarantee systems, and they also use industrial revenue bonds.
Industrial revenue bonds that state governments and public institutions issue to raise funds for designated projects carry advantages that a certain percentage of tax will be deducted from investors' interest income, and that interest rates of issuance can be set low. Because they are part of the credit system of the country, private financial institutions too have a public role to play. They are private enterprises, however, whose aim is primarily to pursue profits. On the other hand, the mission of DBJ, an organization established exclusively with government funds, is not to seek profits, but to enhance social welfare by supporting important policy-based finance projects. Classification is based on the location of projects receiving loans.