Mixed credit can be used to support Danish delivery to development projects in a large number of sectors including infrastructure, water and sanitation, energy, health, environment and education. A mixed credit is made up of a normal export credit supplemented by interest support. In Denmark an interest subsidy is provided by Danida while an export credit is provided by Eksport Kredit Fond. Typically this is a 10 year interest free loan under export credit conditions. Where Danida pays the interest, the principal loan by EKF may include a cash down payment reducing the total loan.
There is an annual figure for mixed credits of DKK 350 million for interest support and related financial costs.
The mixed credits comprise both a tied and an untied scheme. The tied scheme is available for Danida programme countries and other relatively credit safe developing countries with a BNI / head of population not greater than USD 3.156 (2011).
The untied scheme is only available for Danida programme countries and South Africa.
Both schemes are in principal based on the same principles and conditions.