Contents

Highlights of Government Debt Policy

MAIN PRINCIPLES

1.      MAIN PRINCIPLES OF GOVERNMENT DEBT MANAGEMENT
1.1     Responsibilities of Government Debt Management
1.2     Objectives and Strategy
1.3     Government Debt Management Portfolios
1.4     Domestic and Foreign Funding Rules
1.5     Framework of Government Debt Management in Denmark
1.6     Information on the Central-Government Debt

REPORT SECTION

2.      DEVELOPMENTS IN THE FINANCIAL MARKETS
2.1     The Liquidity Crisis
2.2     The Credit Crisis
2.3     The Market for Government Securities

3.      BORROWING IN 2008
3.1     Development in Interest Rates
3.2     Domestic Borrowing
3.3     Buy-Backs
3.4     Foreign Borrowing
3.5     The Central Government's Account
3.6     Ownership Distribution of Danish Government Securities
3.7     Evaluation of Government Transactions

4.      STRATEGY 2009
4.1     Issuance Strategy in the Coming Years
4.2     Issuance Strategy in 2009

5.      GOVERNMENT DEBT AND INTEREST COSTS
5.1     Pronounced Decline in Government Debt in Recent Years
5.2     Falling Government Debt has Reduced Interest Costs
5.3     Other Public Debt Measures

6.      ISSUANCE AND TRADING IN DANISH GOVERNMENT SECURITIES
6.1     Primary Dealer Systems for Danish Government Securities
6.2     Issuance and Buy-Back of Domestic Government Securities in 2008
6.3     Market Making in 2008
6.4     Turnover in Danish Government Securities

7.      MANAGEMENT OF THE GOVERNMENT FUNDS
7.1     The Social Pension Fund
7.2     The Advanced Technology Foundation and the Preventive Measures Fund

8.      RE-LENDING AND GOVERNMENT LOAN GUARANTEES
8.1     Purpose and Framework
8.2     Re-Lending
8.3     Loan Guarantees
8.4     Development of Loan Guarantees and Re-Lending

9.      RISK MANAGEMENT IN 2009
9.1     Interest-Rate Risk
9.2     Exchange-Rate Risk
9.3     Credit Risk
9.4     Operational Risk

SPECIAL-TOPIC SECTION

10.    THE ROLE OF GOVERNMENT DEBT MANAGEMENT OFFICES IN THE LIGHT OG THE FINANCIAL CRISIS
10.1    The Consequences of the Crisis for the Role of DMOs
10.2    Implications for the Market for Government Securities
10.3    Changes in the Role of the Danish DMO

11.    CONSOLIDATED RISK MANAGEMENT BY THE GOVERNMENT
11.1   ALM as a Risk-Management Principle
11.2   Risk Management by the Danish DMO
11.3   Management of Public-Sector Risk
11.4   Central-Government ALM in Other Countries
11.5   Joint Risk Management by the Central Government and Danmarks Nationalbank

APPENDIX

Information on government borrowing and debt

Principles for management of credit risk on government swaps

Terms for the Securities Lending facilities of the central government and the social pension fund

APPENDIX OF TABLES

1. Central-Government Debt, Year-End 1998-2008
2. Service on Central-Government Debt as of 31 December 2008
3. The Central Government's Current, Investment and Lending Balance, Net Cash Balance andGross Deficit, 1998-2008
   
4. Issuance of Central-Government Securities, 2008
   
5. Central-Government Currency Swap Transactions, 2008
   
6. Central-Government Debt as of 31 December 2008
   
7. Central-Government Interest-Rate Swaps as of 31 December 2008
   
8. Kingdom of Denmark's Rating of Central-Government Debt
   
9. Rating of Selected Countries' Central-Government Debt, January 2009

GLOSSARY