Central & South America
Denmark Ministry of Foreign Affairs Mixed Credit ProgramDenmark Ministry of Foreign Affairs Mixed Credit Program Contact: Niels Egerup
Denmark Ministry of Foreign Affairs (Danida) Mixed Credit Program is a program that provides interest-free or low-interest loan, typically with 10 years’ maturity aimed at financing supplies of equipment and related services for development projects within a number of sectors, including water and sanitation, renewable energy, transportation, electrification, food processing, health, environment, and education. DKK 350 million is allocated annually for interest subsidy and related financial costs.
The Mixed Credit Programme of Danida is a partially tied interest free or low interest rate loan scheme aimed at financing development and small industrial projects executed by Danish companies in developing countries with per capita GNI of less than USD 2,348 (2003/2004). The programme is regulated by the OECD guidelines for tied aid. Almost all Danish Mixed Credits are tied: this means that the supplier must be Danish. However, it is not required that the goods and services are produced in Denmark. The other type of Mixed Credits is untied: this means that the supplier does not have to be Danish, but may be from any OECD member country.
The contract value must not exceed SDR 2 million (approx. EUR 2.1 million). In least developed countries (LDCs), this limit is not applicable. The minimum contract amount to be financed in LDCs is EUR 1 million.