Kreditanstalt fur Wiederaufbau (KfW), the German public agency rated Aaa/AAA by Moody's Investors Service and Standard & Poor's, respectively, said last week that it plans to continue its Euro benchmark program on top of the EURO15 billion it had already forecasted to launch next year; and as part of the plan the agency intends to increase its use of both the Promise and Provide securitization programs, for a combined total of EURO12 billion.

In recognition of the need for standardization of synthetic securitization products, KfW created the PROMISE program. Through it KfW entices German banks to securitize their Mittelstand loans (loans made to small- and medium-sized companies) by offering banks a standard structure, which offers risk-transfer with maximum regulatory relief.

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