"An imaginary company
Hjalmar Schacht formed the limited liability company Metallurgische Forschungsgesellschaft, m.b.H., or "MEFO" for short. The company's "Mefo bills" served as bills of exchange, convertible into Reichsmark upon request. "MEFO had no product, service or operation. It was solely a balance sheet entity.
Mefo bills were issued to mature in six months, but with a provision for indefinite 90-day extensions at the government's behest. To further entice investors, Mefo bills carried an annual interest rate of 4%, higher than that of other trade bills at the time."