GREENLAND: USD 93 million bailout for "Royal Greenland"

Royal Greenland, a company employing more than two thousand people and fully owned by Greenlands Home Rule Governement has received a bailout package of DKK (Danish Kroner) 500 million (USD 93 million).

The new government in Greenland has injected DKK 250 million (USD 46.5 million) in equity and granted a soft loan for a similar amount to the ailing, 100% publicly owned company. Royal Greenland is a large producer of shrimps.

It seems that the Home Rule Parliament agreed with the package on Sunday 28 June 2009.

An interesting feature of Greenland is that Denmark represents this territory in many international fora. With regard to the WTO, it appears that a Greenlandic Delegation joins the Danish Delegation at Ministerial meetings.

It is also worth noting that Greenland has a fisheries agreement with the EU. I copy here an extract from the information available at the EU website on this agreement:

"The Fisheries Partnership Agreement concluded between the Community and Greenland covers the period 1.1.2007 – 31.12.2012 with a financial contribution [annually] of 15 847 244 € including a financial reserve of 1 540 000 € for additional capelin and/or cod quotas and 3 261 449 € for defining and implementing a sectoral fisheries policy in Greenland.

This fisheries agreement allows Community vessels mainly from Germany, Denmark, UK, Spain, Portugal to fish in Greenland waters and is the only FPA concluded with a non-ACP States."

Here is a link to an article on the Royal Greenland bailout:

http://www.cphpost.dk/news/national/88-national/46021-on-the-path-to-self-rule.html

And here a link to the EU's website with details about the EU-Greenland fisheries agreement:

http://ec.europa.eu/fisheries/cfp/external_relations/bilateral_agreements/greenland_en.htm