Report on The Ministry of Foreign Affairs' investment funds


Report no. 12/2006

The report deals with the Ministry of Foreign Affairs' international investment funds, which include The Industrialization Fund for Development Countries (IFU) and Investeringsfonden for Østlande (IØ), a fund promoting Danish investments in Central and Eastern Europe. By year-end 2005, the combined equity of the two funds exceeded DKK 3 billion.

The purpose of IFU is to promote industrial development in the development countries in a co-operation with Danish industry and trade. The purpose of IØ is to promote a closer economic co-operation between Denmark and reformist Central and Eastern European countries, benefiting both the general East/West relations and Danish trade and employment. The purpose of both funds is thus to assist the recipient countries by supporting Danish investments.

Rigsrevisionen has evaluated whether the funds promote industrial development in development countries and Central and Eastern European countries in co-operation with Danish industry and trade. Rigsrevisionen has therefore examined whether the funds have resulted in concrete projects in accordance with the purpose of the law. Furthermore, Rigsrevisionen has examined whether the framework of the funds is appropriate and the supervision provided by the Ministry of Foreign Affairs satisfactory.