Faroese finance chair questions cost advantage of Danish state loan for Suðuroy tunnel

A Danish state loan for the Suðuroy tunnel may not be cheaper than borrowing from the Faroese treasury, the chair of the Faroese Economic Council said Thursday.

Johnny í Grótinum’s remarks follow the Danish government’s announcement that it would explore the possibility of a state-backed loan for the underwater tunnel project. While Faroese Prime Minister Bárður Nielsen has welcomed the option, í Grótinum told public broadcaster KVF that a Danish loan would not necessarily offer better terms than conventional financing.

The Economic Council chair did not rule out the loan but stressed that cost comparisons would be essential before proceeding.