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Denmark ignores OECD warning on use of aid as export subsidy

News November 20, 2006
Denmark will continue to use aid as export subsidises to its companies selling capital goods to poor countries financed by so-called tied mixed credits. An article published in Development Today earlier this year revealing the Danish practice caused several donor countries to voice their concerns to the OECD headquarters in Paris. In a sharp letter to the Danes, the Chair of the OECD/DAC says this is a violation of a donor agreement from 2001 that abolishes this practice.

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