Danish Love

The government on Monday signed up for US$ 60 mn worth of aid from the Kingdom of Denmark to finance key development projects.
Around 35 percent of the aid comes as grant money, while the rest is interest free with a 10-year repayment period after commissioning the project, Finance Minister K N Choksy told a news conference.rn

rnProjects earmarked for funding include Oluwil Harbour, repairing Colombo sewerage lines and revamping the Milco dairy plant.rn

rnThe agreement allows for Danish capital goods to be imported through commercial export. The Danish commercial banks will extend the credit, with an export credit guarantee from the Danish Export Credit Fund covering a minimum of 95 percent of the credit. The Danish government will pay the guarantee premium.rn

rnTreasury Secretary Charitha Ratwatte and Danish Ambassador Michael Sternberg signed, the agreement on behalf of both governments. Danish Honorary Consul, Harry Jayawardene was also present.rn