Press Releases

The Board of Directors re-elected Mr Hans E. Zeuthen, Professor, as Chairman and Ms Helle Bechgaard, Managing Director, as Deputy Chairman for the coming year.

Elections to the Committee of Directors
The Committee of Directors has seven members, of whom five are elected by the Board of Directors. The Board of Directors re-elected Mr Søren Bjerre-Nielsen, Group President, Ms Pia Gjellerup, MP, Ms Kirsten Nissen, Trade Union President, Mr Jens Rohde, MP, and Mr Hans E. Zeuthen, Professor. All are elected for the coming year.

Two members of the Committee of Directors, Mr Michael Dithmer, Permanent Secretary, and Mr Michael Lunn, Permanent Secretary, are appointed by the Royal Bank Commissioner for the period ending in 2006.

At the first meeting the Committee of Directors re-elected Mr Hans E. Zeuthen, Professor, as Chairman and Mr Michael Dithmer, Permanent Secretary, as Deputy Chairman for the period from 1 April 2004 to 31 March 2005.

2 August 2004: Election to the Committee of Directors of Danmarks Nationalbank
Following her maternity leave, Ms Pernille Blach Hansen, MP, has been re-elected to the Committee of Directors of Danmarks Nationalbank, and Ms Pia Gjellerup, MP, who replaced Ms Pernille Blach Hansen on the Committee of Directors in December 2003, has withdrawn. The election to the Committee of Directors by the Board of Directors is valid for the remainder of the term ending on 31 March 2005.

8 September 2004: Election to Danmarks Nationalbank's Board of Directors
Folketinget (Parliament) has elected Ms Rikke Hvilshøj, MP, and Ms Pia Christmas-Møller, MP, to the Board of Directors of Danmarks Nationalbank for the remainder of the current term ending on 31 March 2006. They succeed Mr Kristian Jensen, Minister for Taxation, and Ms Gitte Seeberg, MEP.

9 December 2004: Election to the Board of Directors of Danmarks Nationalbank
The Board of Directors of Danmarks Nationalbank has elected Mr Niels Due Jensen, Group Chairman, to the Board of Directors of Danmarks Nationalbank, replacing Mr Bent le Fèvre, General Manager, for the remainder of the term ending on 31 March 2009.

PUBLICATIONS

13 January 2004: Financial Management at Danmarks Nationalbank
Today Danmarks Nationalbank publishes the book Financial Management at Danmarks Nationalbank. The book provides a description of the principles and methodologies used in connection with management of the foreign-exchange reserve and other portfolios. Danmarks Nationalbank considers it important to provide a comprehensive description of the principles for financial management and to ensure that the principles are available to the general public.

Danmarks Nationalbank is one of the first central banks to publish a full description of the management of the foreign-exchange reserve. The description covers considerations related to the decision-making process and distribution of responsibility as well as risk management and performance measurement. The composition of Danmarks Nationalbank's balance sheet and the financial result is also described.

The cornerstone of financial management is the fixed-exchange-rate policy, although good returns are also an objective to Danmarks Nationalbank. The choice of risk level is characterised by prudence. Management of the individual types of risk reflects that Danmarks Nationalbank seeks to avoid major losses as a result of changes in interest-rate risk and currency risk, and the aim is to completely avoid losses as a consequence of counterparty failure.

The book is available in Danish and English.

This publication is available at Danmarks Nationalbank's website www.nationalbanken.dk or on request from:

Danmarks Nationalbank, Information Desk

Telephone +45 33 63 70 00 (direct)

E-mail: info@nationalbanken.dk

17 March 2004: Danmarks Nationalbank's Report and Accounts for 2003
Report of the Board of Governors
At the meeting of the Board of Directors of Danmarks Nationalbank on 16 March 2004 at 3 p.m. the Board of Governors presented the Report for 2003. The Report was noted.

The Report comprises the following key issues:

• Summary    
• The Danish economy
• Monetary and exchange-rate policy
• Financial markets
• The domestic financial system
• Banknotes and coins
• Payment systems
• International monetary cooperation
• Organisation and tasks of Danmarks Nationalbank
• Report on Danmarks Nationalbank's Accounts

Accounts
The Accounts for 2003 were submitted by the Board of Governors for adoption on the recommendation of the Committee of Directors. The Board of Directors and the Royal Bank Commissioner, the Minister for Economic and Business Affairs Bendt Bendtsen, approved the Accounts.

The net profit for the year was kr. 3,609 million, compared to kr. 6,664 million in 2002.

Net income from interest fell from kr. 4,955 million to kr. 4,454 million in 2003. Value adjustments are negative at kr. 267 million, compared to positive at kr. 2,124 million in 2002.

Expenses rose by kr. 71 million to kr. 576 million.

The profit is allocated as follows:

• Transfer of kr. 267 million – equivalent to the value adjustments for the year – from the Value Adjustment Reserve.
• Allocation of kr. 775 million – equivalent to 20 per cent of the profit after allocation from the Value Adjustment Reserve – to the General Reserves for consolidation of Danmarks Nationalbank.
• The remaining amount of kr. 3,101 million is transferred to the central government. For 2002 the amount transferred was kr. 3,632 million.

The Report and Accounts for 2003 are published today. The publication can be viewed at www.nationalbanken.dk under Publications, and can be obtained from Danmarks Nationalbank.

11 May 2004: Financial stability 2004
Danmarks Nationalbank today publishes its annual report on financial stability in Denmark, "Finansiel stabilitet 2004". The English edition of this publication is expected to be available on Danmarks Nationalbank's website as from 28 May 2004. The printed English edition is expected to be released on 3 June 2004. The publication can be found at www.nationalbanken.dk under Publications.

The purpose is to assess whether the financial system is so robust that any problems in the financial sector do not spread and impede the functioning of the financial markets as efficient providers of capital to companies and households. The approach is to consider the general risks to the financial system, while evaluation on the situation of the individual financial institutions is a task of the Danish Financial Supervisory Authority.

The report is in two parts. The first part starts with an analysis of the development in the financial sector, with emphasis on the banking institutions. This is followed by a chapter on the development in the corporate sector and the households, and finally the developments in the financial markets are reviewed.

In connection with the publication Governor Bodil Nyboe Andersen says, "The analysis in the report shows that the resilience of the Nordic financial groups was unchanged at end-2003 compared to end-2002. The significant capital gains on the sale of Totalkredit to Nykredit have contributed to strengthening the resilience of the Danish banking institutions."

"The corporate sector and the households have benefited from the low level of interest rates in recent years," Bodil Nyboe Andersen continues. "At international meetings regarding financial stability, discussions increasingly focus on vulnerability to rising interest rates."

The second part of the report includes various current topics in relation to financial stability. These are branches of foreign credit institutions, systemic risks in the Danish market for uncollateralised overnight deposits, and market-based risk measures for banks.

"Creating a framework for the single market is an important pillar of the EU," Bodil Nyboe Andersen adds. "The current framework does not sufficiently envisage a situation where a foreign bank has a branch in Denmark which carries significant weight in the Danish banking sector. This will be the case if, as announced, Nordea is converted into a European company with branches in Denmark and other countries. That situation would require more binding cooperation between the authorities in the relevant countries – in this case the Nordic countries – than EU regulation provides for. It is important to put this issue on the European agenda."

Jesper Berg, 44, holds an MSc (econ.). Since August 2000 he has been in charge of the European Central Bank's Division Capital Markets and Financial Structure. Prior to his appointment to the ECB, Jesper Berg was Head of Payment Systems at Danmarks Nationalbank.

20 April 2004: Appointment
The Committee of Directors of Danmarks Nationalbank has appointed Anders Møller Christensen, Director, Head of Economics, to Assistant Governor.

Anders Møller Christensen aged 56 holds an MSc (econ.) and has held positions at Danmarks Nationalbank since 1982.

25 October 2004: Appointment
As of 1 November, Karsten Biltoft, Head of Division, is appointed Head of Danmarks Nationalbank's Secretariat which, among other things, is responsible for external and internal communication.

Karsten Biltoft, MSc (Econ), aged 42, has held positions at Danmarks Nationalbank since 1988, for the last four years as Head of Payment Systems.

The new Head of Payment Systems is Kristian Kjeldsen, Assistant Head of Division, MSc (Econ) and PhD, aged 41. Kristian Kjeldsen has held positions at Danmarks Nationalbank since 1997, for the last three years at Financial Markets.

16 November 2004: Appointment
Danmarks Nationalbank's Committee of Directors has appointed Kristian Kjeldsen, Assistant Head of Division, to Head of Division.

Kristian Kjeldsen, MSc (Econ) and PhD, aged 41, is Head of Payment Systems and has held positions at Danmarks Nationalbank since 1997.

BANKNOTES AND COINS

19 January 2004: New Faroese 200-krone banknote
Today a Faroese 200-krone banknote is issued. This is a new denomination in the Faroese banknote series.

The motif on the face of the 200-krone banknote is a Ghost Moth, Hepialus humuli, printed in intaglio. The Ghost Moth, which spreads its wings across the banknote, is found all over the Faroe Islands. The background is reproduced from a watercolour with blades of grass. The motif of Tindhólmur near Vágar on the reverse of the banknote is also reproduced from a watercolour. The watercolours are by Zacharias Heinesen.

The 200-krone banknote measures 145 x 72 mm and its primary colour is dusty violet.

200 kroner – a new denomination
The introduction of this new denomination in the Faroese banknote series is a natural consequence of the Act on Faroese Banknotes etc., which e.g. states that Faroese banknotes shall have the same sizes and denominations as Danish banknotes. The wish to be able to settle payments using as few banknotes and coins as possible was the background to introducing the Danish 200-krone banknote.

Security features
Like the 100-krone banknote, the 200-krone banknote has a hologram. With the other security features – such as the watermark and the security thread with colour change – it makes Faroese banknotes difficult to counterfeit.

The new banknote series
The remaining two banknotes in the new series are expected to be issued within 1½ years.

Further information
A folder on the new banknote will be distributed to Faroese households from 20 January 2004. For further information, visit Notes and coins at www.nationalbanken.dk.

11 February 2005: Commemorative coin to mark the wedding of HRH Crown Prince Frederik and Miss Mary Donaldson on 14 May 2004
A commemorative coin will be issued to mark the wedding of His Royal Highness Crown Prince Frederik and Miss Mary Donaldson. This is in line with the tradition to issue commemorative coins in connection with special events in the Royal Family.

The coin will be issued in a 20-krone and a 200-krone version. The 20-krone coin will be of the same size and alloy as the ordinary 20-krone coin in circulation. It will be minted in an edition of 1.2 million coins. The 200-krone coin will be 38 mm in diameter and will be minted in fine silver in an edition of 125,000 coins.

The motif on the obverse of the coin is a profile of the Queen, identical to the one used on the most recent 10- and 20-krone coins. The reverse features a twin portrait of His Royal Highness Crown Prince Frederik and Miss Mary Donaldson. The wedding portrait was designed by the sculptor Karin Lorentzen.

Both commemorative coins will be available from banks and coin dealers from 10 May 2004.

30 March 2004: Thematic coin with the Goose Tower
Danmarks Nationalbank will be issuing the fourth coin in its series of thematic coins with towers as the common theme. The Goose Tower in Vordingborg is the motif on the reverse of the coin. The face of the coin shows a profile of the Queen, identical to the one used on the most recent 20-krone coins. The Goose Tower coin will be issued as a 20-krone coin in an edition of 1.2 million coins. It is of the same size and alloy as the ordinary 20-krone coin in circulation and can be purchased at face value from banks and Danmarks Nationalbank from 31 March 2004.

The relief of the Goose Tower was designed by the sculptor Tina Maria Nielsen, who comments on the relief as follows: "The stairway by the Tower has been emphasised, and the goose and the brickwork have been made relatively larger than in real life to make the motif more dynamic. The Tower has been placed slightly to the left of the centre of the coin so that the motif does not become too static."

The Goose Tower is the best-preserved medieval fortification tower in Denmark. It was built in the reign of King Valdemar IV (Atterdag) in the 1360s and is named for the golden goose that adorns the Tower. As the story goes, King Valdemar placed a golden goose on the Tower to mock his arch-enemies, the Hanseatic League, which he referred to as a flock of cackling, but otherwise harmless geese.

"Towers have been chosen as the theme since they represent both national and historical symbols. Unlike e.g. whole buildings they also give the artist a good opportunity to create an interesting coin with depth and a wealth of detail", says Governor Torben Nielsen, Danmarks Nationalbank. The tower motifs on the thematic coins have been chosen from among the many suggestions received by Danmarks Nationalbank. The next coin in the series will be issued later this year.

Pictures can be downloaded from www.nationalbanken.dk – Pressroom, Photo gallery.

30 July 2004: Thematic coin with Svaneke water tower
Svaneke water tower is the motif of the fifth coin in the thematic "tower" series issued by Danmarks Nationalbank. Designed by the architect Jørn Utzon, the characteristic tripod water tower from 1952 has become a symbol of the town of Svaneke. The water tower is no longer used for its original purpose. It was decommissioned in 1988, when Svaneke's water supply was restructured. The building has been listed since 1990.

The sculptor, Professor Morten Stræde is the artist behind the relief of Svaneke water tower. He comments on his work with the coin as follows: "It is a great challenge to work with a building of such geometrical simplicity and still convey a sense of presence. I have therefore chosen to show the tower from a "human" point of view, as an approaching visitor would perceive it. This has given me a broader scope to work sculpturally with the space and proportions of the tower. Above all, it has enabled sculpturally meaningful positioning of the stringent building on the round surface of the coin."

Svaneke water tower was selected from among the many suggestions received by Danmarks Nationalbank. The Svaneke tower coin will be issued as a 20-krone coin in an edition of 1.2 million coins. It is of the same size and alloy as the ordinary 20-krone coin in circulation. The face of the coin shows a profile of the Queen by the sculptor, Professor Mogens Møller. This profile has been used on 10-krone and 20-krone coins since 2001. The coin can be purchased at face value from banks and Danmarks Nationalbank from 2 August 2004.

The next tower coin will be issued in early 2005.

Pictures can be downloaded from www.nationalbanken.dk – Pressroom, Photo gallery.

17 September 2004: Coin Set 2004 – a new design and two versions
The Royal Mint's 2004 Coin Set will be available in a new design and two different versions: an ordinary version and an especially fine version, both including a medal. The medal, depicting the Battle of Køge Bay, is a copy of the largest Danish medal ever minted by the Royal Mint.

The 2004 Coin Set includes the Royal Mint's medal in Nordic gold, the seven ordinary coins in circulation and the 20-krone commemorative coin issued to celebrate the wedding of Denmark's Crown Prince Frederik and Crown Princess Mary. The coins of the Coin Set have a more distinct embossment than the ordinary coins in circulation. They are presented in special packaging, and as from this year in a new design. The 2004 Coin Set is minted in a maximum edition of 35,000.

The especially fine (proof) version of the 2004 Coin Set includes the Royal Mint's medal in silver and the seven coins in circulation in proof quality. The coins are presented in a specially made box. The proof version is minted in a maximum edition of 3,000.

The coin sets do not include the year's thematic coins with towers as the common theme. Instead, a full set of thematic coins will be issued once the tower series is complete.

The coin sets will be available from banks and coin dealers as from 25 October 2004. Some banks and coin dealers already take orders now. The recommended retail price is DKK 200 for the ordinary version and DKK 875 for the proof version.

Any remaining coin sets will be sold from 25 October 2004 from Danmarks Nationalbank, Cashier Services, Havnegade 5, DK-1093 Copenhagen K, opening hour's: Monday-Friday 10.00 a.m. to 1.00 p.m.

For further information about the 2004 Coin Set, please go to Danmarks Nationalbank's website at www.nationalbanken.dk and select Notes and coins/Coin set. Pictures can be downloaded from Press room/Photogallery/Coins.

24 November 2004: New 1,000-krone banknote – new security features, but the same motifs
On 25 November 2004, Danmarks Nationalbank issues a new and more secure 1,000-krone banknote. As something new, the banknote bears a hologram and fluorescent colours. The hologram and the fluorescent colours are security features to make the Danish banknotes even harder to counterfeit.

The motifs on the 1,000-krone banknote remain unchanged. There is still a double portrait of the artists Anna and Michael Ancher on the face of the banknote and a tournament scene on the reverse.

Hologram and fluorescent colours
The motifs in the new hologram are the number "1000", a painter's palette and the Roman numeral for "1000", an "M".

Fluorescent colours, which are visible under ultraviolet light, are printed on the face and reverse of the banknote. On the face a knight appears when the banknote is exposed to ultraviolet light. On the reverse, the orange colour lights up, especially in the number "1000" and in the ring on the right-hand side of the banknote. 

Old banknotes are still legal tender
The old 1,000-krone banknotes remain legal tender, but will be gradually withdrawn from circulation. The two versions of the 1,000-krone banknote will be in parallel circulation for a period of time.

Upgrading continues
Now there is only one banknote denomination left – the 50-krone banknote – before the entire banknote series bears the new security features. A new 50-krone banknote will be issued in summer 2005.

For more information
For more information, please go to Danmarks Nationalbank's website at www.nationalbanken.dk and select Notes and coins. The folder "New Banknote security" can also be seen here. Pictures of the new security features are available at Press room/Photogallery/Danish banknotes.

29 November 2004: New Faroese 500-krone banknote
Tomorrow Danmarks Nationalbank issues a new 500-krone Faroese banknote. The banknote is the fourth in the new Faroese banknote series.

The face of the new 500-krone banknote shows a fragment of a shore crab. The shore crab can be found on every Faroese coast. The motif of the shore crab is printed in intaglio. The background to the shore crab is a reproduction of a watercolour of the sandy seabed viewed through water. The motif on the reverse is a watercolour of Hvannasund. The watercolours are both by Zacharias Heinesen.

The new 500-krone banknote measures 155 x 72 mm and its main colour is dusty green.

Security features
The 500-krone banknote, like the 100 and 200-krone banknotes, has a hologram. With the other security features – e.g. the watermark and security thread with colour change – this will help protect the banknotes from counterfeiting.

The new banknote series
The final banknote in this new series – the 1,000-krone banknote – is expected to be issued in summer 2005. 

Old banknotes are still legal tender
The old 500-krone banknotes remain legal tender, but will be gradually withdrawn from circulation.

For more information
A folder on the new banknote will be distributed to every household in the Faroe Islands from 2 December 2004. For further information, visit www.nationalbanken.dk under Notes and coins.

27 January 2005: Landet Church adorns new thematic coin
On 28 January 2005, Danmarks Nationalbank issues the sixth in its series of thematic 20-krone coins with specially chosen Danish towers as the motif on the reverse.

Seen through chestnut leaves from the grave of Elvira Madigan and Sixten Sparre, the tower of Landet Church on the island of Tåsinge reaches towards the sky on the reverse of the new thematic coin. Landet Church is a traditional Danish village church, built around 1150-1200 in the Age of the Valdemars, with the tower and porch added later. The church tower was built in 1634.

The sculptor Øivind Nygaard is the artist behind the tower motif from Landet Church. The hearts and pistol that Øivind Nygaard has woven into the chestnut leaves around the tower symbolise the tragic love story of Elvira Madigan and Sixten Sparre. "In addition to showing a Danish church tower, the pictorial metaphors seen on the coin, combined with the view of the tower of Landet Church, are intended to tell a story and interpret the history and mythology of the church," Øivind Nygaard explains.

The Landet Church tower coin is issued as a 20-krone coin in an edition of 1.2 million. It is of the same size and alloy as the ordinary 20-krone coin in circulation. The face of the coin shows a profile of the Queen by the sculptor, Professor Mogens Møller.

The new thematic coin can be purchased from banks and Danmarks Nationalbank from 28 January 2005. The next tower coin is expected to be issued in the autumn of 2005.

Pictures can be downloaded from www.nationalbanken.dk – Press room, Photogallery.

3 February 2005: Thematic coins with Hans Christian Andersen's fairy tales
To mark the bicentenary of Hans Christian Andersen, Danmarks Nationalbank is issuing a new series of thematic coins. The first in the series is issued on 31 March 2005 and is a 10-krone coin in three different editions – a gold coin, a fine silver coin and an ordinary 10-krone coin. The gold and silver coins are issued to meet a demand in the collector market. These coins will be sold at a price exceeding the face value, a practice that was customary in Denmark until 1986 and is now standard international practice.

On the reverse of the first Hans Christian Andersen coin, an adult swan is studying its reflection in the lake at Bregentved Manor, where Hans Christian Andersen was inspired to write his famous fairy tale "The Ugly Duckling". The artist is the sculptor Hans Pauli Olsen.

The face of the Hans Christian Andersen coins shows a profile of the Queen by the sculptor, Professor Mogens Møller.

The gold coin will be issued in an edition not exceeding 7,000, while the silver coin will be issued in an edition of up to 75,000. The ordinary 10-krone coin will be issued in an edition of 1.2 million. All Hans Christian Andersen coins are legal tender and can be exchanged at Danmarks Nationalbank at face value.

The Hans Christian Andersen thematic coins can be purchased from banks and coin dealers as from 31 March 2005. Some banks and coin dealers already take orders. The recommended retail prices including Danish VAT are kr. 2,000 for the gold coin and kr. 200 for the silver coin. The coins will also be sold from 31 March 2005 from Danmarks Nationalbank, Banking Services, between 10 am and 1 pm on week-days.

28 June 2004: Three new currencies join ERM II
With effect from Monday, 28 June 2004, Estonia, Lithuania and Slovenia have joined the EU's exchange rate mechanism, ERM II.

The central rates and fluctuation bands of the three currencies have been fixed vis-à-vis the euro and are stated in the press releases from the EU and the ECB.

Danmarks Nationalbank welcomes the new participants in ERM II, in which Denmark has been the only participating member state for a number of years.

The entry of the new member states will not entail any changes in the central rate, fluctuation band and other terms and conditions for the Danish krone in ERM II.

The press releases from the EU and the ECB are available at www.nationalbanken.dk under Monetary Policy – Exchange Rate Mechanism/ERM II.

7 September 2004: Revised version of Danmarks Nationalbank's list of daily published exchange rates
As from 14 September 2004, Danmarks Nationalbank's list of daily published exchange rates will be expanded to include the following currencies:

• Bulgarian lev
• Cyprus pound
• Maltese lira
• Romanian lei
• Slovenian tolar
• Slovakian koruna
• Turkish lira
• South Korean won
• South African rand

Danmarks Nationalbank's complete list of currencies henceforth comprises 29 currencies, including all EU currencies.

30 November 2004: Danmarks Nationalbank's publication of exchange rates
As of 1 January 2005 Turkey introduces the New Turkish Lira (TRY) as its official currency, replacing the old Turkish lira (TRL). The conversion rate between the two currencies is 1 TRY = 1,000,000 TRL. As from 3 January 2005 Danmarks Nationalbank's list of exchange rates will reflect this change: the Turkish lira will be removed from the list and replaced by the New Turkish Lira.

Danmarks Nationalbank's exchange rates are normally listed daily at 2.15 pm on the basis of information from a number of central banks. The exchange rates are published for information only. Currency cannot be bought from or sold to Danmarks Nationalbank at the published exchange rates.

28 September 2004: Rising turnover in the Danish foreign-exchange and derivatives market
According to a survey conducted by Danmarks Nationalbank, turnover in the Danish foreign-exchange market increased by 76 per cent from April 2001 to April 2004, equivalent to USD 41 billion per banking day. Derivatives turnover (foreign-exchange and interest-rate derivatives) has risen by 90 per cent since 2001, equivalent to USD 12 billion per banking day. Allowing for the weakening of the dollar since 2001, turnover has risen by 52 per cent in the foreign-exchange market and by 53 per cent in the derivatives market.

The survey forms part of a triennial international survey of foreign-exchange and derivatives market activity conducted under the auspices of the Bank for International Settlements (BIS). The Danish figures are collected from seven banks that account for more than 95 per cent of the turnover covered by the survey.

Regarding the foreign-exchange market, the rise in turnover is a departure from the declining trend shown by previous surveys. Turnover in FX swaps, which is traditionally used as a money-market product, increased particularly. The increased turnover in the derivatives market confirms the trend shown by previous surveys.

The increase is related especially to the greater use of euro-denominated contracts.

For further information please go to Danmarks Nationalbank's website on www.nationalbanken.dk and select Statistics, Download Statistics – Publications.

At: www.bis.org/publ/rpfx04.htm, the results of the global survey can be found.

20 October 2004: Bjarne Skafte has passed away
Bjarne Skafte, Head of Secretariat at Danmarks Nationalbank, has passed away on 19 October at the age of only 54 after a period of illness. Bjarne Skafte, MSc (Econ), had since 1999 been Head of Danmarks Nationalbank's Secretariat that, among other things, is responsible for the bank's external and internal communication as well as secretariat functions for the Board of Governors.

Bjarne Skafte came to Danmarks Nationalbank from the Danish Ministry of Finance in 1991 in connection with the transfer of the government debt office, where he was Head of Division.

The Board of Governors of Danmarks Nationalbank paid tribute in an announcement.

7 December 2004: New data collection method for Denmark's balance of payments and external debt

Reduction of the reporting burden
With effect from the turn of the year 2004/05, Danmarks National-bank will abolish the duty to report external payments. This will sig-nificantly reduce the administrative burden on the Danish business community.

So far, both private individuals and approximately 25,000 business enterprises have been obliged to inform their bank of the purpose of payments to and from abroad. The information is used to compile Denmark's balance of payments and external debt. Following the transition to a new data collection method, only approximately 2,500 business enterprises will be required to report to Statistics Denmark and Danmarks Nationalbank.

The new method
As from January 2005, the balance of payments and the external debt will be based on reports predominantly from large business enterprises with extensive external economic relations.

The enterprises that are subject to the new reporting requirements were notified accordingly almost a year ago. Since then, a number of information meetings have been held and the enterprises have tested the new data collection system.

Why adopt a new method?
"The new data collection method provides a more reliable and up-to-date basis for the statistics and is in keeping with similar restructuring in other European countries. As an added benefit, the method significantly reduces the administrative burden on banks and especially small and medium-sized enterprises," says Governor Torben Nielsen. The current method has been in existence since the 1930s and is a remainder from the days of foreign-exchange restrictions.

For further information
The restructuring is described in further details at www.nationalbanken.dk under Rules/Statistics – New balance of payments and at www.dst.dk/betalingsbalance.

17 December 2004: Governor Bodil Nyboe Andersen is to retire in October 2005
Governor Bodil Nyboe Andersen has informed the government that she wishes to take her retirement in October 2005 when she reaches 65 years of age.

17 January 2005: Restructuring of Danish Ship Finance as a limited liability company
In 1960-61 Danmarks Nationalbank participated in the establishment of Danish Ship Finance, and since then has been one of its guarantors. Danish Ship Finance, the Danish Ministry of Economic and Business Affairs and Danmarks Nationalbank have now concluded an agreement to restructure Danish Ship Finance as a limited liability company.

Danmarks Nationalbank's participation in Danish Ship Finance should be seen against the background of its involvement during the 1950s and 1960s in the establishment of a number of specialist institu-tions for financing industry, agriculture, housing and shipbuilding. This was done in response to a requirement at that time to strengthen the capital markets, and because there was a need for specialised institutions.

These institutions were set up as foundations, which make it difficult for them to adapt to market conditions. Consequently, they have, one by one, been restructured as limited liability companies.

Danish Ship Finance has been an important instrument in relation to financing and subsidising shipbuilding in Denmark, e.g. via interest-subsidy schemes for ship finance, which were discontinued in 1993. Since then it has granted loans on market terms.

Until 1984, Danish Ship Finance made a profit in connection to borrowers prepayments of interest-subsidised loans. Recognising that the profit from such prepayments would have accrued to the government if the latter itself had handled these lending activities, the parties have agreed to compensate for this profit in connection with the modernisation of Danish Ship Finance. Consequently, Danmarks Nationalbank and the Danish government will receive a total of DKK 1,610 million.

Like the other guarantors, Danmarks Nationalbank will acquire shares in the limited liability company. These shares cannot be sold for at least five years.

The agreement is subject to the Danish Parliament (Folketing) passing the necessary legislation, and to approval of the agreement by the Board of Representatives of Danish Ship Finance and the Committee of Directors of Danmarks Nationalbank.

For further details about the agreement, reference is made to Dan-ish Ship Finance and the Danish Ministry of Economic and Business Affairs.

21 January 2005: Danmarks Nationalbank sells its shares in Grønlandsbanken A/S to the Greenland Home Rule
Danmarks Nationalbank has been a shareholder of Grønlandsbanken A/S since its foundation in 1967. At that time the establishment of a bank in Greenland was considered an important task for society.

It is not normally the role of Danmarks Nationalbank to be a co-owner of a private bank, and Danmarks Nationalbank has gradually reduced its ownership interest over the years.

Today Danmarks Nationalbank has concluded an agreement with the Greenland Home Rule to transfer Danmarks Nationalbank's total shareholding in Grønlandsbanken A/S, nominally DKK 24,666,000. This shareholding constitutes 13.7 per cent of the share capital of Grønlandsbanken A/S and is denominated as 246,660 shares of DKK 100 each.

The agreement is subject to the approval of the Home Rule's acquisition of the shares by the Danish Financial Supervisory Author-ity.

The agreed purchase sum is DKK 89,044,260, equivalent to DKK 361 per share.

9 February 2005: Danmarks Nationalbank has sold its shares in Grønlandsbanken A/S
In a stock-exchange announcement dated 20 January 2005 Danmarks Nationalbank stated that it had sold its total shareholding of nominally kr. 24,666,000 shares in Grønlandsbanken A/S to the Greenland Home Rule.

The shareholding amounted to 13.7 per cent of the total share capital of Grønlandsbanken A/S and was denominated as 246,660 shares of kr. 100 each. The agreement was subject to the approval of the Home Rule's acquisition of the shares by the Danish Financial Supervisory Authority.

The Financial Supervisory Authority has approved the Greenland Home Rule as the purchaser of the shares. The property and voting rights relating to the shares are therefore transferred to the Greenland Home Rule as of 15 February 2005.