About Merkur Development Loans Ltd.
The main purpose of Merkur Development Loans Ltd. is to assist ecologically sustainable economic development in developing countries. Loans are extended to small and medium-sized enterprises (SME), as well as cooperatives that face difficulties obtaining loans on fair terms.
In 2016 it has been decided to begin winding up Merkur Development Loans Ltd as the existing loans are repaid. No new loans will be provided.
Businesses that wish to take out loans with Merkur Development Loans Ltd. must have a certification, or be in the process of being certified, in the fields of organic or biodynamic business, fair trade, or responsible forest management. Loans for the advancement of renewable energy are also granted.
Merkur Development Loans Ltd. was founded in 2009 and is a partnership between Merkur Cooperative Bank and the Investment Fund for Developing Countries (IFU).
Merkur Cooperative Bank is Denmark's leading financial institute with special emphasis on environmental, social and ethical aspects, and possesses more than twenty six years of experience in lending to projects aimed at sustainable development in Denmark. In 2005, Merkur Cooperative Bank started extending credits to ecologically sustainable producers in developing countries.
The Investment Fund for Developing Countries (IFU) advises Danish companies and invests with them in developing countries and emerging markets. Investments are carried out on commercial terms by issuing capital stock or extending loans. Since 1967, IFU has invested more than DKK 19 billion (€ ~2.5 bill.) in more than 1,200 companies in Latin America, Asia and Africa.
Supporters include a number of private investors and companies, who have bought shares in the company. Merkur Development Loans Ltd. has at its disposal a share capital of DKK 15 mill. (Euro 2 mill.).