3 Jul 2020
EUR 60 million
Financial institutions and SMEs
|Date of agreement:||10 Sep 2014|
|Amount in DKK:||DKK 300 million|
|Amount in EUR:||EUR 40.3 million|
|NACE sector / loan type:||Loan programme|
|Business area:||Financial institutions and SMEs|
The funds provided under the loan programme will be onlent for financing environmental and SME projects to the bank’s customers in Greenland, Denmark and the Faroe Islands. The bank’s customer base includes approximately 800 small and medium-sized enterprises in various sectors.
BankNordik is a banking and insurance group founded in 1906 in the Faroe Islands. It is a full-service bank with activities in Denmark, Greenland and the Faroe Islands and insurance activities in the Faroe Islands and Iceland. The Group has 180,000 customers, of which 800 are small and medium-sized enterprises in various sectors.
Competitiveness: The project is expected to alleviate credit constraints, which have been identified as a comparative disadvantage for small and medium-sized companies, and thereby facilitate productivity growth. The projects to be funded should fulfil NIB’s eligibility criteria. Given that SMEs are responsible for a considerable share in aggregate output and employment in the member area, improved access to financing that raises productivity can increase the competitive pressure and efficiency on the market.
Environment: Eligible allocations are expected to lead to either a decrease in CO2 emissions or a decrease in nutrient discharges into the Baltic Sea.
Expected allocations will be of small scale and have a low potential for environmental and social impact.