The agreement was signed on Monday, 22 June 2020 by Ahmed Shide, Ethiopia’s Minister of Finance and Mr. Jelsper B. Petterson and Olaf S. Mark Sachet, Director and Associate Director of Danske Bank A/S, respectively.
The total amount of the project is €146 million, of which €117 million loans will be covered by the Danske Bank A/S, according to a statement issued by the Ethiopian Ministry of Finance.
The Danida Business Fund (DBF), administered by the Investment Fund for Development Countries on behalf of the Government of Denmark, committed to contributing a €28.70 million cash grant for the project.
In addition, DBF will subsidize the interest rate, Bank Margin, and EKF premium expenses of amounting €66 million euro. The DBF total support in terms of the grant, including the cash grant, is €94.7 million.
The financial support for the project is part of the Danish development assistance to Ethiopia, the statement added.