Dundee University is to receive a £22 million emergency funding package.
The lifeline support will be made available to addres the immediate financial challenges, the Scottish Funding Council (SFC) confirmed.
The body – responsible for directing higher education funding – says it will be provided as a low-cost loan and capital grant.
The SFC says it was first made aware of the significant financial challenges in November, and had been engaged closely since then on a potential rescue.
‘Welcome support’
On Wednesday, acting court chair Tricia Bey said the university was facing a “grave crisis” and without the “welcome support” it would run out of cash by June.
Commenting on the support package, SFC chief executive Francesca Osowska said: “We recognise the significant uncertainty and anxiety that staff and students are experiencing at the University of Dundee.
“Given the important role that the university plays in the city and the surrounding region, we also acknowledge the concerns of the wider community.”
She added: “We are committed to supporting the university, and the funding approved by the SFC board today will support the university as it develops its financial recovery plan to return to a position of financial health.”
The university previously welcomed the support after it was indicated by government.
Interim principal Professor Shane O’Neill said: “We are extremely grateful to the Scottish Government and the Scottish Funding Council as this funding is vital in ensuring our ongoing sustainability and giving us the time and space to work towards a full recovery plan to address the serious financial challenges we are facing.
“We will continue to work with the SFC and a wide range of partners in that work.”
Dundee West MSP Joe FitzPatrick said: “I welcome the SFC being absolutely clear that this support is not to be used to fund any job losses, but is instead to support the university paying staff wages and meeting their immediate costs.
“I have been clear that it would not be acceptable for this support to fund job cuts in Dundee.
“Given the worrying evidence MSPs heard from the university at the Scottish Parliament this week, it’s also very welcome that the funding requires the university to co-operate with an independent investigation.
“The answers given to MSPs by the university were completely unsatisfactory.”
‘No time for delay’
North East Labour MSP Michael Marra said the cash would “keep the lights on and wages paid until summer”.
He added: “The Scottish Government response started with negligence, was followed by hesitancy and remains inadequate.
“There must be a new version of a recovery plan within two weeks that can be funded and delivered. This is now incredibly urgent and there is no more time for delay or diversion from either the university or the Scottish Government.”
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