Government bilateral loans


To support economic stabilisation, the Danish central government granted bilateral loans to Iceland and Ireland.

Early redemption of loan to Iceland

In cooperation with the other Nordic countries, Denmark granted a bilateral loan to Iceland in 2010. In July 2014, the remainder of the loan, which was due to expire in 2021, was redeemed prematurely. In the days just before the redemption, Iceland had issued a 6-year loan in euro at a rate of interest which was approximately 1 percentage point lower than the rate of interest on the loans from the Nordic countries.

Early redemption of loan to Ireland

In November 2010, the EU member states and the IMF granted Ireland an 85 billion euro loan facility. Together with Sweden and the UK, Denmark has committed itself to a bilateral loan facility. In 2013 Ireland received the third and fourth disbursements of the bilateral loan facility from Denmark. Ireland thus made full use of the loan facility from Denmark of kr. 400 billion euro. Each disbursement has a maturity of 7.5 years at a rate of interest corresponding to 3-month Euribor + 1 percentage points. ​In December 2017, Ireland redeemed the total loan amount.

Following the early redemptions, the central government has no bilateral loans to other sovereign states.