Organisation

In 1998 work on a new electronic reporting system for payments between Denmark and abroad was concluded.

The establishment of the Nationalbank's Information Desk and Internet website have given easier access to statistics and information on the Nationalbank.

The Nationalbank's computer systems have been adjusted and tested as part of the Nationalbank's Year 2000 Project.

The number of employees fell by 13 to 566.

Changes in tasks

Collection and publication of statistics
Together with the Danish Bankers Association, the currency traders and their computer centres the Nationalbank in 1998 implemented a new electronic reporting system for payments to and from abroad.

For securities transactions the new system was introduced on 20 April 1998. For such transactions the system is based on automatic reporting via the currency traders' trading and settlement systems. All other payments from and to abroad which are settled via the currency traders became part of the electronic reporting system as from 5 October 1998.

For the currency traders and their customers the reporting system has eased the reporting burden. A balance of payment codification has been prepared for application to statistics for payments between Denmark and abroad. The system improves the basis for more detailed statistics.

As described in the 1997 Annual Report the Nationalbank has expanded and amended its publication of statistics. The first step was the issue of a new statistics publication series, Nyt (News), in January 1998. It comprises regular publication within eight topic groups: Interest and exchange rates, The banks' balance sheet, The mortgage-credit institutes' balance sheet, The Nationalbank's balance sheet, Securities, Central-government finance and debt, External payments and Direct investments. Moreover, the annual compilation of Denmark's external debt is published.

In addition to Nyt the Nationalbank as from June 1998 has published the Monthly Financial Statistics, which has been revised and significantly expanded in relation to the previous Monthly Financial Statistics. The new Monthly Financial Statistics is a statistical reference which in contrast to the Nyt series does not include text commentaries. Instead, the emphasis is on providing an overview of the development in statistics for recent years as an extended time series. The Monthly Financial Statistics partly replace the Appendix of Tables in the Annual Report.

Cash supply
In 1998 changes were made in the handling of the cash-supply system, cf. p. 71ff.

New methods of providing information and communicating
On 1 January 1998 the Nationalbank established an Information Desk at the Secretariat. This unit will help provide a better service to people contacting the Nationalbank with enquiries. In 1998 the Information Desk received approximately 7,000 enquiries. In 1999 it was made possible to send questions in writing to: info@nationalbanken.dk the Information Desk's e-mail address.

Since the Nationalbank's website opened on 25 May 1998 the number of visitors to www.nationalbanken.dk has been rising. From approximately 5,500 visitors in June 1998, at the beginning of 1999 the number had increased to 20,000 per month. Statistics for the most visited pages show that mainly professional enquirers use the Nationalbank's information pages and electronic publications. The most visited pages are:

• Official interest rates under Markets
• Money-market rates under Markets
• Exchange rates under Markets
• Press releases
• The new banknote series
• The "Nyt" (News) series under Statistics
• The tasks of the Nationalbank
• The Monetary Review
• Positions vacant at the Nationalbank

A new design has been created for the Nationalbank's publications. A graphic design standard has been chosen which ensures a uniform presentation of all publications. The new graphic design has two main colours, and a third colour signifying the publication category.

Information to the Faroe Islands on monetary and foreign-exchange issues
As an element of the agreement of 10 June 1998 between the government and the Faroese Home Rule the Nationalbank briefs the Faroese Home Rule on current monetary and foreign-exchange conditions. At a meeting on 18 September 1998 with representatives from the Faroese Home Rule the guidelines for this provision of information were set out. It will take place at one or several annual meetings between the Nationalbank's Board of Governors and Home Rule representatives, as well as via the Nationalbank's publications, press releases and other information material.

Withdrawal from Finance for Danish Industry A/S (FIH)
TheNationalbankisintheprocessofdivestingits shareholding in Finance forDanishIndustryA/S(FIH).In1958theNationalbankcontributedtoestablishingFIH,thepurposeofwhichwastopromoteindustrialisationbyextendingmedium-termloansforindustryandsmalltrades.Thislendingisnowincompetitionwithotherfinancialinstitutions.TheNationalbank therefore no longer found it appropriate to be a joint owner. In connection with structural adjustments at FIH the Nationalbank has therefore decided to withdraw. One half of the share portfolio was sold in 1998.

Year 2000 project

Since 1997 the Nationalbank has worked to improve its systems in preparation for the millennium change. The Year 2000 Project is expected to be carried out as planned.

The project comprises review and testing of computer systems and computer hardware, as well as installations and infrastructure such as access control and surveillance.

The work of safeguarding the bank's computer systems takes place in close cooperation with Bankernes Edb Central (BEC), which is the Nationalbank's computer centre.

In 1998 all computer systems used by the Nationalbank at BEC were inspected to discover any year 2000 problems. The systems were analysed, adjusted and tested. After testing and approval by the Nationalbank the production of the adjusted programs was initiated. In the 4th quarter of 1998 BEC then performed integration testing, i.e. testing of whether the systems can operate together. Integration testing took place in a special year 2000 environment which simulates the millennium change as well as dates after 1 January 2000.

In the first half-year of 1999 the Nationalbank participates in a sector test together with the financial sector in order to ensure that the financial sector's settlement and clearing systems can communicate in the year 2000. The sector test is expected to be completed in mid-June 1999, although the ECB has planned the testing of the interface to the ECB's TARGET system to continue into September 1999.

During the same period a number of the Nationalbank's systems which are not affected by the sector testing will also be tested for year 2000 compatibility in the special year 2000 environment. Here, it is also possible to choose specific dates for test runs, as well as to test the effect of the millennium change on systems and data.

The Nationalbank has requested supplier declarations for all standard systems used on the bank's local network. The programs which have not been given a year 2000 declaration are mainly older programs which are being phased out. Testing of programs developed by the Nationalbank itself is planned to be concluded in mid-1999.

With regard to installations and infrastructure which may be affected by year 2000 problems the Nationalbank in 1998 initiated an extensive survey. It included telephone systems, alarm systems, access control and time registration systems, box systems, and various equipment related to production of banknotes and coins, etc. For systems for which this was possible testing of year 2000 functionality was carried out. In some cases supplierguaranteeswereobtained.Preparationofinstallationsandinfrastructurefor the year 2000 is planned to be concluded in April/May 1999.

Before the end of the first half of 1999 plans will be drawn up for emergency procedures for critical operational systems in order to safeguard the ongoing operation of the Nationalbank in the event of year 2000 problems.

In order to meet any increasing demand for cash supplies up to the millennium change, like other central banks the Nationalbank has ceased destruction of old banknotes, so as to ensure an extra supply of cash.

The Nationalbank's management

The Royal Bank Commissioner
The Minister of Economic Affairs and for Nordic Cooperation Ms. Marianne Jelved is the Royal Bank Commissioner.

Board of Directors
The Board of Directors re-elected Mr. Knud Koch Jensen, Mr. Erik B. Rasmussen and Mr. Helge Sørensen, who resigned by rotation, for a new five-year term from 1 April 1998. Mr. Erik B. Rasmussen takes his retirement on 31 March 1999.

After the parliamentary elections on 11 March 1998 the Folketing (Parliament) elected new members of the Board of Directors. Mr. Jacob Buksti, MP and Ms. Gitte Seeberg, MP were elected as new members of the Board of Directors to replace former Minister Mr. Torben Lund, MP and Ms. Karen Højte Jensen, MP who both left Parliament after the election.

In February 1999 the Folketing (Parliament) elected Mr. Jan Petersen, MP as new member of the Board of Directors to replace Mr. Ove Fich, who left Parliament.

The Board of Directors re-elected Professor Hans E. Zeuthen as Chairman and Ms. Helle Bechgaard as Deputy Chairman for the period 1 April 1998 to 31 March 1999.

Box 12 THE BOARD OF DIRECTORS OF DANMARKS NATIONALBANK, 1 MARCH 1999

Chairman: Hans E. Zeuthen, Professor Deputy Chairman: Helle Bechgaard, Senior Vice President, Ph.D. (Pharm.) Elected by the Folketing for the period ending 31 March 2001: Jacob Buksti, MP Pia Christmas-Møller, MP Uffe Ellemann-Jensen, MP Jørgen Estrup, MP Jes Lunde, MP Jan Petersen, MP Anders Fogh Rasmussen, MP Gitte Seeberg, MP Appointed by the Royal Bank Commissioner for the period ending 31 March 2001: Michael Dithmer, Permanent Secretary, Ministry of Economic Affairs Karsten Olsen, Former Deputy Permanent Secretary
Elected by the Board of Directors:	For periods ending 31 March
Bent le Fèvre, General Manager		1999
Jens Rostrup-Nielsen, Director, R&D Division, dr.techn.		1999
Hans E. Zeuthen, Professor		1999
Helle Bechgaard, Senior Vice President, Ph.D. (Pharm.)		2000
B. Frank Nielsen, General Manager		2000
Kirsten Stallknecht, Chairman of ICN		2000
Harry Nicolaisen, Farmer		2001
Finn Thorgrimson, Former President of the Trade Union Federation		2001
Margit Vognsen, Vice-President of the Danish Trade Union of Public Employees		2001
Jette W. Knudsen, Managing Director		2002
Kjeld Larsen, Farmer		2002
Kirsten Nielsen, President of the Consumer Council		2002
Knud Koch Jensen, Engineer		2003
Erik B. Rasmussen, General Manager, Civil Engineer		2003
Helge Sørensen, Civil Engineer		2003

The Board of Directors of the Nationalbank on 1 March 1999 is shown in Box 12.

Committee of Directors
For the period 1 April 1998 to 31 March 1999 the Board of Directors re-elected Mr. Uffe Ellemann-Jensen, Mr. Erik B. Rasmussen, Ms. Margit Vognsen and Professor Hans E. Zeuthen. Mr. Torben Lund was likewise re-elected to the Committee of Directors even though he left the Folketing after the election on 11 March 1998 and therefore was also to resign from the Nationalbank's Board of Directors and Committee of Directors. Shortly thereafter the Folketing elected new members of the Board of Directors, and the Board of Directors elected Mr. Jacob Buksti as member of the Committee of Directors to succeed Mr. Torben Lund.

Two members of the Committee of Directors, Mr. Michael Dithmer and Mr. Karsten Olsen, are appointed by the Royal Bank Commissioner until 31 March 2001.

The Committee of Directors re-elected Professor Hans E. Zeuthen as Chairman and Mr. Michael Dithmer as Deputy Chairman for the period 1 April 1998 to 31 March 1999.

The Nationalbank's Committee of Directors on 1 March 1999 is presented in Box 13.

Board of Governors
As Governor by Royal Appointment Ms. Bodil Nyboe Andersen is Chairman of the Board of Governors. The two other members are Mr. Torben Nielsen and Mr. Jens Thomsen.

Box 13 THE COMMITTEE OF DIRECTORS OF DANMARKS NATIONALBANK,
1 MARCH 1999

Chairman: Hans E. Zeuthen, Professor Deputy Chairman: Michael Dithmer, Permanent Secretary, Ministry of Economic Affairs Elected by the Board of Directors for the period ending 31 March 1999: Jacob Buksti, MP Uffe Ellemann-Jensen, MP Erik B. Rasmussen, General Manager, Civil Engineer Margit Vognsen, Vice-President of the Danish Trade Union of Public Employees Hans E. Zeuthen, Professor Appointed by the Royal Bank Commissioner for the period ending 31 March 2001: Michael Dithmer, Permanent Secretary, Ministry of Economic Affairs Karsten Olsen, Former Deputy Permanent Secretary

Auditors
The Royal Bank Commissioner re-appointed State-Authorised Public Accountant Mr. John Gath and State-Authorised Public Accountant Mr. Svend Ørjan Jensen to be the Nationalbank's external auditors for the year ending 31 March 1999.

Administration

The Nationalbank has 15 departments, including the Note Printing Works and the Royal Mint. No changes have been made to the organisation chart in 1998, cf. p. 102. The chart includes the managers of each department.

Staff
During 1998 the Nationalbank's staff decreased by 13 to 566.

The number of employees has decreased at the Note Printing Works, the Royal Mint and in the "Other" group which includes cleaning and canteen personnel, service assistants, craftsmen, etc. The decrease in the number of employees at the Royal Mint is mainly due to changes in the handling of coins, cf. the 1997 Annual Report, p. 66. The number of bank and clerical staff has increased by eight.

In 1998 14 employees left the bank under severance agreements.

At the close of 1998 24 employees were on leave, primarily working for international organisations, of whom nine at the ECB.

Four employees were on leave under statutory leave schemes.

Organisation chart 1 March 1999

Representation in international organisations

As an element of the international foreign-exchange and monetary-policy cooperation Danmarks Nationalbank participates in a number of committees, sub-committees and working groups, of which the most significant are:

The European Union, EU
The Economic and Financial Committee:
Governor Jens Thomsen (with Michael Dithmer, Permanent Secretary, Ministry of Economic Affairs).
Niels Bartholdy, Head of Department, is an alternate member of the Committee (with Henrik Fugmann, Deputy Secretary, Ministry of Economic Affairs).

The Economic Policy Committee:
Hugo Frey Jensen, Head of Department (with Per Bremer Rasmussen, Deputy Secretary, and Lise-Lotte Teilmand, Special Adviser, Ministry of Economic Affairs, and Per Callesen, Deputy Secretary, Ministry of Finance).

The Banking Advisory Committee:
Benny Andersen, Assistant Director (with Torben Garne, Director, Ministry of Economic Affairs, and Henrik Bjerre-Nielsen, Director General, the Financial Supervisory Authority).

The Working Group of Mint Directors:
Laust Grove, Director, the Royal Mint, and Ulrikke Ekelund, Head of Section.

The European Central Bank, ECB
The General Council:
Governor Bodil Nyboe Andersen.

The Nationalbank participates partly in the following ECB committees:

International Relations Committee:
Governor Jens Thomsen and Niels Bartholdy, Head of Department.

Payment and Settlement Systems Committee:
Governor Torben Nielsen and Tobias Thygesen, Head of Section.

Banking Supervision Committee:
Benny Andersen, Assistant Director, (with Henrik Bjerre-Nielsen, Director General, the Financial Supervisory Authority).

Monetary Policy Committee:
Hugo Frey Jensen, Head of Department, and Hanne Lyngesen, Head of Section.

Market Operations Committee:
Frank Nielsen, Head of Department.

Information Technology Committee:
Leif Kjærgaard, Head of IT, and Jørgen Petersen, Assistant Head of Department.

Legal Committee:
Kirsten Rohde Jensen, Head of Department and Louise Mogensen, Head of Section.

Accounting and Monetary Income Committee:
Henrik Larsen, Assistant Director, and Allan Damm Christensen, Head of Section.

Banknote Committee:
Hans Kloch, Director, and Tage Heering, Head of Department.

Statistics Committee:
Jørgen Ovi, Assistant Governor.

Internal Auditors Committee:
Peter Jochimsen, Chief Auditor, and Stephan Green Löwe, Head of Section.

External Communications Committee:
Bjarne Skafte, Head of Department

The International Monetary Fund, IMF
Governor Bodil Nyboe Andersen is the Danish member of the IMF's Board of Governors. (Michael Dithmer, Permanent Secretary, Ministry of Economic Affairs, is an alternate member of the Board).

Kai Aaen Hansen, Director, is Executive Director for the Nordic/Baltic countries at the IMF until 31 December 1999.

Organisation for Economic Cooperation and Development, OECD
The Economic Policy Committee:
Governor Jens Thomsen (with Michael Dithmer, Permanent Secretary, Ministry of Economic Affairs, and Anders Eldrup, Permanent Secretary, Ministry of Finance).

Nordic Council of Ministers
Nordic Financial Committee:
Governor Jens Thomsen and Niels Bartholdy, Head of Department (with Henrik Fugmann, Deputy Secretary, Ministry of Economic Affairs).

Danmarks Nationalbank's anniversary foundation of 1968

In 1998 the Foundation's honorary grant was awarded to Mr. Hans Jørgen Brøndum, Publisher, Brøndums Forlag og Grafiske Værksted, and to Mr. Ejnar Pedersen, Master Carpenter, PP Møbler ApS, who each received kr. 100,000 kr.

The purpose of the Foundation is to extend financial support for the promotion and development of the artistic design and presentation of Danish products and to support other artistic areas, mainly decorative art, architecture and design, but also music and dance. In 1998 total grants amounted to kr. 5.6 million. Of 1,349 applications, 159 were granted. In addition, seven grants without prior application were made.

On 1 March 1999 the Board of the Foundation comprised Governor Bodil Nyboe Andersen (Chairman), Professor Hans E. Zeuthen (Deputy Chairman), Ms. Bodil Busk Laursen, Ms. Bente Scavenius, Mr. Teit Weylandt and Mr. Mads Øvlisen.

The nationalbank's guest apartments at Nyhavn 18

The Nationalbank has seven guest apartments at Nyhavn 18 which are made available to foreign scientists and artists. Residence in the guest apartments is free and granted from three months up to one year. In 1998 the guest apartments at Nyhavn 18 were allocated to 11 visitors.

The Committee formed to advise on the allocation of the apartments consists of Professor Ole Feldbæk (Chairman), Dr. Else Marie Bukdahl and Professor Niels I. Meyer.

The Erik Hoffmeyer travel grant foundation

The establishment and objective of the Foundation are described in the 1995 Annual Report.

In 1998 the Erik Hoffmeyer Travel Grant Foundation awarded grants for the third time. Two grants of kr. 45,000 each were made to the poet, writer and dramatist Naja Marie Aidt and to the architect, sculptor and artist Khaled D. Ramadan. Both received the grant for further studies abroad.

On 1 March 1999 the Board of the Travel Grant Foundation comprised Professor Hans E. Zeuthen (Chairman), former Governor Erik Hoffmeyer and former Chief Rabbi Bent Melchior.