It is hereby declared to be in the public interest and to be the policy of the state to foster and promote by all reasonable means the provision of adequate markets and facilities for borrowing money by governmental units, as defined herein, for the financing of their public improvements and other municipal purposes from proceeds of bonds or notes issued by such governmental units, and to assist such governmental units in fulfilling their needs for such purposes by creation of indebtedness and to the extent possible to encourage continued investor interest in the bonds or notes of such governmental units as sound and preferred securities for investment. It is in the public interest and it is the policy of the state to encourage its governmental units to continue their independent undertakings of public improvements and new municipal purposes and the financing thereof and to assist them therein by making funds available at reduced interest costs for orderly financing of such public improvements and other municipal purposes, particularly for those governmental units not otherwise able readily to borrow for such purposes at reasonable rates of interest. It is further declared that credit and municipal bond market conditions require the exercise of the powers of the state in the interest of its governmental units to further and implement such policies by authorizing a state instrumentality to be created as a body corporate and politic to have full powers to borrow money and to issue its bonds and notes to make funds available through the facilities of such instrumentality at reduced rates and on more favorable terms for borrowing by such governmental units through the purchase by such instrumentality of the bonds or notes of such governmental units in fully marketable form and by granting broad powers to such instrumentality to accomplish and to carry out the aforesaid policies of the state which are in the public interest of the state and of its taxpayers and residents.