Document background
The Credit Agreement Letter is a fundamental document in Danish financial transactions, used when a financial institution extends credit to individuals or businesses. It serves as both a formal offer of credit and, when accepted, a binding agreement under Danish law. The document must conform to the Danish Credit Agreements Act (Kreditaftaleloven) and related financial regulations, including EU-derived requirements for consumer protection and information disclosure. The letter format is particularly suitable for straightforward credit arrangements where a full facility agreement might be excessive, while still ensuring all legally required terms are properly documented. It typically includes credit amount, interest rates, repayment terms, conditions precedent, and any security requirements, structured to meet both regulatory requirements and practical business needs.
