Press releases

INTEREST-RATE CHANGES

17 February 2006: Interest-rate increase
With effect from 17 February 2006 the lending rate and the rate of interest for certificates of deposit are raised from 2.40 per cent to 2.50 per cent. The discount rate and the rate of interest on banks' current accounts with Danmarks Nationalbank are unchanged at 2.25 per cent.

The increase by 10 basis points is due to an outflow of foreign exchange in February, among other things as a result of Danish institutional investors' purchase of foreign shares and other securities. In accordance with the fixed-exchange-rate policy Danmarks Nationalbank has intervened to support the krone. The interest-rate increase is intended to make placements in kroner more advantageous. Danmarks Nationalbank emphasises that the outflow of capital does not reflect a weakening of the Danish economy.

2 March 2006: Interest rate increase
The discount rate and the interest rate on the banks' current accounts with the Nationalbank are raised by 0.25 per cent to 2.50 per cent. The Nationalbank's lending rate and the rate of interest on certificates of deposit are raised by 0.25 per cent to 2.75 per cent. The increase will have effect as from 3 March 2006.

The interest rate increase is a consequence of the raising by the European Central Bank of the minimum bid rate on the main refinancing operations by 0.25 per cent to 2.50 per cent.

8 June 2006: Interest rate increase
The discount rate and the interest rate on the banks' current accounts with the Nationalbank are raised by 0.25 per cent to 2.75 per cent. The Nationalbank's lending rate and the rate of interest on certificates of deposit are raised by 0.25 per cent to 3.00 per cent. The increase will have effect as from 9 June 2006.

The interest rate increase is a consequence of the raising by the European Central Bank of the minimum bid rate on the main refinancing operations by 0.25 per cent to 2.75 per cent.

3 August 2006: Interest rate increase
The discount rate and the interest rate on the banks' current accounts with the Nationalbank are raised by 0.25 per cent to 3.00 per cent. The Nationalbank's lending rate and the rate of interest on certificates of deposit are raised by 0.25 per cent to 3.25 per cent. The increase will have effect as from 4 August 2006.

The interest rate increase is a consequence of the raising by the European Central Bank of the minimum bid rate on the main refinancing operations by 0.25 per cent to 3.00 per cent.

5 October 2006: Interest rate increase
The discount rate and the interest rate on the banks' current accounts with the Nationalbank are raised by 0.25 per cent to 3.25 per cent. The Nationalbank's lending rate and the rate of interest on certificates of deposit are raised by 0.25 per cent to 3.50 per cent. The increase will have effect as from 6 October 2006.

The interest rate increase is a consequence of the raising by the European Central Bank of the minimum bid rate on the main refinancing operations by 0.25 per cent to 3.25 per cent.

7 December 2006: Interest rate increase
The discount rate and the interest rate on the banks' current accounts with Danmarks Nationalbank are raised by 0.25 per cent to 3.50 per cent. Danmarks Nationalbank's lending rate and the rate of interest on certificates of deposit are raised by 0.25 per cent to 3.75 per cent. The increase will have effect as from 8 December 2006.

The interest rate increase is a consequence of the raising by the European Central Bank of the minimum bid rate on the main refinancing operations by 0.25 per cent to 3.50 per cent.

THE BOARD OF DIRECTORS AND THE COMMITTEE OF DIRECTORS

21 March 2006: Elections to the Board of Directors and Committee of Directors of Danmarks Nationalbank
Elections to the Board of Directors
The five-year terms of 13 of the 25 members of the Board of Directors expire on 31 March 2006. The following elections and appointments have been made for the five-year term running from 1 April 2006 to 31 March 2011:

The Folketing (Parliament), which elects eight members, has re-elected Ms Elisabeth Arnold, MP, Ms Pia Christmas-Møller, MP, Mr Kristian Thulesen Dahl, MP, Mr Svend Erik Hovmand, MP, Mr Henrik Sass Larsen, MP, Mr Jens Rohde, MP, Mr Villy Søvndal, MP and Ms Helle Thorning-Schmidt, MP.

The Minister of Economic and Business Affairs, who appoints two members, has re-appointed Mr Michael Dithmer, Permanent Secretary, and Mr Michael Lunn, Permanent Secretary.

The Board of Directors of Danmarks Nationalbank elects 15 members, of whom three are elected by rotation every year. The Board of Directors has re-elected Mr Johannes Fløystrup Jensen, Director, and Ms Kirsten Nissen, Trade Union President, and has elected Mr Hans Jensen, President of the Trade Union Federation, to replace Mr Finn Thorgrimson, former President of the Trade Union Federation, who retired due to age.

The Board of Directors of Danmarks Nationalbank has elected Mr Peter Bjerregaard, Managing Director, as a member of the Board. He replaces Mr Knud Koch-Jensen, Engineer, for the remaining part of his term, which expires on 31 March 2008.

The Board of Directors re-elected Professor Hans E. Zeuthen as Chairman and Ms Helle Bechgaard, 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 Kirsten Nissen, Trade Union President, Mr Jens Rohde, MP, Ms Helle Thorning-Schmidt, MP, and Professor Hans E. Zeuthen. All are elected for the coming year.

Pursuant to the Danmarks Nationalbank Act, the two members of the Board of Directors appointed by the Minister of Economic and Business Affairs are also members of the Committee of Directors.

Mr Michael Dithmer, Permanent Secretary, and Mr Michael Lunn, Permanent Secretary, have thus been re-appointed for five-year terms running until 2011.

At its first meeting, the Committee of Directors re-elected Professor Hans E. Zeuthen as Chairman and Mr Michael Dithmer, Permanent Secretary, as Deputy Chairman for the period from 1 April 2006 to 31 March 2007.

8 June 2006: Election to Danmarks Nationalbank's Board of Directors
Folketinget (Parliament) has elected Mr Lars-Emil Johansen to the Board of Directors of Danmarks Nationalbank as from 1 October 2006 until 31 March 2011. He succeeds Mr Henrik Sass Larsen.

13 October 2006: Election to Danmarks Nationalbank's Board of Directors
Folketinget (Parliament) has elected Mr Troels Lund Poulsen to the Board of Directors of Danmarks Nationalbank as from 12 October 2006 until 31 March 2011. He succeeds Mr Jens Rohde.

6 December 2006: Election to the Committee of Directors of Danmarks Nationalbank
The Board of Directors has elected Mr. Troels Lund Poulsen, MP, as a new member of the Committee of Directors for the remainder of the term ending on 31 March 2007. Mr. Troels Lund Poulsen succeeds Mr. Jens Rohde.

PUBLICATIONS

21 March 2006: Danmarks Nationalbank's Report and Accounts for 2005
At the meeting of the Board of Directors of Danmarks Nationalbank on 20 March 2006 the Board of Governors presented the Report and Accounts for 2005.

The Report, which presents recent trends in the Danish economy, the monetary and foreign-exchange policy, and the financial and foreign- exchange markets, as well as a review of international monetary cooperation, together with Danmarks Nationalbank's other areas of operation and its organisation, was noted.

Danmarks Nationalbank's Accounts for 2005 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, Mr Bendt Bendtsen, Minister of Economic and Business Affairs, approved the Accounts.

Accounts
The net profit for the year was kr. 4,902 million, compared to kr. 2,844 million in 2004.

Net income from interest totalled kr. 3,616 million, which is kr. 338 million less than in 2004. Value adjustments are positive at kr. 1,210 million. In 2004 they were negative at kr. 662 million.

Total expenses increased by kr. 254 million to kr. 804 million mainly as a consequence of a special payment of kr. 200 million to Danmarks Nationalbank's Pension Fund subject to winding-up.

Allocation of profit:

• Transfer of kr. 1,210 million – equivalent to the value adjustments for the year – to the Value Adjustment Reserve.
• Allocation of kr. 738 million – equivalent to 20 per cent of the profit after allocation to the Value Adjustment Reserve – to the General Reserves for consolidation of Danmarks Nationalbank.
• The remaining amount of kr. 2,954 million is transferred to the central government. For 2004 the amount transferred was kr. 2,805 million.

The Report and Accounts for 2005 are published today and can be viewed at www.nationalbanken.dk under Publications, or obtained from Danmarks Nationalbank, Information Desk.

23 May 2006: Financial stability 2006
Danmarks Nationalbank today publishes its annual report on financial stability in Denmark, " Finansiel stabilitet 2006" . The English edition is expected to be available on Danmarks Nationalbank's website as from 1 June. The printed English edition is expected to be released on 8 June. The publication will be available at www.nationalbanken.dk under Publications.

The most significant risks to the financial system are analysed in the report, including situations that are very unlikely to arise, but which might have major consequences for the economy. It is assessed whether the overall financial system is sufficiently robust for any problems experienced within the sector not to spread and prevent the financial markets from functioning as providers of capital and financial services. It is the task of the Danish Financial Supervisory Authority to ensure that each financial institution is sufficiently robust.

In connection with the report's publication Governor Nils Bernstein says: " The favourable economic conditions are reflected in the earnings of the financial sector, and our assessment is that the financial institutions are still robust. Overall we cannot see any immediate clouds on the horizon that might pose a threat to financial stability in Denmark."

" However, the resilience of the banking institutions has declined a little due to very strong growth in lending and a minor decrease in capital adequacy," Nils Bernstein adds.

An analysis of homeowners' interest-rate exposure shows that mort-gage-credit interest expenses will on average increase by 1.2 per cent of the household's gross income on an increase in interest rates by 1 percentage point. For a family with a household income of kr. 500,000 this would entail an annual increase in mortgage-credit expenses by kr. 6,000 before tax. However, considerable dispersion is seen, and some homeowners' interest expenses will rise by more than 3 per cent of their gross income.

" The households' favourable economic conditions have contributed significantly to the strong economic growth. There are some exposed groups of households, but in overall terms the development in the households' interest-rate exposure poses no threat to the functioning of the financial system and consequently to financial stability," Nils Bernstein concludes.

The publication 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 chapters on the development in the corporate sector and the households and in the financial markets, and a chapter on framework conditions for the financial system.

The second part of the report considers various current topics in relation to financial stability. These are the use of advanced approaches to calculating capital requirements under Basel II, the liquidity of the banking institutions, and securing settlement in Danish payment and settlement systems.

APPOINTMENTS

21 March 2006: Appointment
Danmarks Nationalbank's Committee of Directors has appointed Niels Christian Andersen, Assistant Head of Division, to Head of Division. Niels Christian Andersen is assistant head of Legal Department.

Niels Christian Andersen, 37, holds a Master of Law and a Dip.Econ. (HD) in finance. He has held positions at Danmarks Nationalbank since 1999.

22 August 2006: Appointments
Danmarks Nationalbank's Committee of Directors has appointed Senior Adviser Dan Knudsen to Head of Division and Head of Department, Hugo Frey Jensen to Director.

Dan Knudsen, MSc (econ), holds a position within Economics. Dan Knudsen, 55, has held positions at Danmarks Nationalbank since 1985.

Hugo Frey Jensen is Head of Financial Markets and holds an MSc (econ). Hugo Frey Jensen, 48, has held positions at Danmarks Nationalbank since 1984.

30 January 2007: Appointments
Danmarks Nationalbank's Committee of Directors has appointed Niels Christian Beier, Niels Lynggård Hansen and Tom Wagener to Head of Division.

Adviser Niels Christian Beier, 35, holds a PhD and an MSc (econ). Niels Christian Beier holds a position within Secretariat and has held positions at Danmarks Nationalbank since 2000.

Assistant Head of Division Niels Lynggård Hansen, PhD and MSc (econ), holds a position within Economics. Niels Lynggård Hansen, 41, has held positions at Danmarks Nationalbank since 1994.

Assistant Head of Division Tom Wagener, 39, holds an MSc (econ). Tom Wagener is Assistant Head of IT and has held positions at Danmarks Nationalbank since 1996.

BANKNOTES AND COINS

1 February 2006: New tower coin with Gråsten Palace
On 15 February 2006, Danmarks Nationalbank issues a new tower coin with the Bell Tower of Gråsten Palace as its motif. This is the eighth in the series of tower coins, of which the first was issued in 2002.

The motif for the new tower coin is designed by the sculptor and graphic artist Sys Hindsbo.

Can be used as an ordinary 20-krone coin
The Gråsten Palace coin is issued in an edition of 1.2 million. The tower coin, which bears a portrait of the Queen on the obverse, can be used as an ordinary 20-krone coin.

Different parts of Denmark
On selecting the towers for the coin series, importance has been attached to choosing towers with different functions from different regions of Denmark. This is evident from the list of towers, which – besides the Bell Tower of Gråsten Palace – includes Nólsoy Lighthouse in the Faroe Islands, Landet Church on the island of Tåsinge, Svaneke Water Tower on Bornholm, the Goose Tower in Vordingborg, Christiansborg Palace Tower, the Old Copenhagen Stock Exchange (Børsen) and Aarhus City Hall Tower.

Series to be completed in 2007
The next tower coin is expected to be issued in the autumn of 2006, and the last of the 10 coins in 2007.

Photo gallery
Pictures of this and earlier tower coins can be downloaded from www.nationalbanken.dk – Press room, Photogallery.

16 February 2006: Coin Set for Children
On 28 February 2006, Danmarks Nationalbank for the first time issues a coin set especially for children.

The coin set unfolds like a picture book, from the stag on the front cover to the medal's happy little beetle with antlers and a crown. The motifs are inspired by animals of the forest and drawn in an imaginative style by the illustrator Cato Thau-Jensen.

Silver medal with space for a child's name
On the inside of the coin set, there is space for such information as a child's name, date of birth and christening date. A child's name can be engraved on the silver medal. It is up to the buyer of the coin set to arrange this, as Danmarks Nationalbank does not provide this service.  

Besides the medal, the coin set comprises Denmark's coin series, i.e. 25- and 50-øre coins and 1-, 2-, 5-, 10- and 20-krone coins minted in 2006. This year's coin set for children is issued in a maximum edition of 10,000.

The coin set is on sale from 28 February 2006
The recommended retail price is kr. 250.00. The coin set can be purchased from banks, coin dealers, gold and silver smiths, and from Danmarks Nationalbank, Banking Services, Havnegade 5, DK-1093 Copenhagen K. The opening hours are Monday-Friday from 10.00 a.m. to 1.00 p.m.

Information and pictures, etc.
Pictures of the coin set can be downloaded from www.nationalbanken.dk under Press room, Photogallery, and details are available under Notes and coins, Coin set.

5 April 2006: " The Shadow" – a fairy tale in gold and silver
The artist Bjørn Nørgaard has interpreted Hans Christian Andersen's fairy tale " The Shadow" . The result is the beautiful and exciting coin that is issued on 24 April 2006. The obverse of the coin shows a profile of the Queen.

The coin is a 10-krone coin issued in three versions – a gold coin, a silver coin, and an ordinary 10-krone coin. The gold and silver coins are minted in editions not exceeding 5,000 and 50,000, respectively. The ordinary 10-krone coin is issued in an edition of 1.2 million.

The third fairy tale coin
" The Shadow" is the third in a series of five coins with fairy tales as their common theme. The first two coins were inspired by " The Ugly Duckling" and " The Little Mermaid" . The next fairy tale coin will be issued in the autumn of 2006.

On sale from 24 April 2006
The fairy tale coin can be purchased from banks, coin dealers and Danmarks Nationalbank as from 24 April 2006. Some banks and coin dealers already take orders now.

The recommended retail prices including Danish VAT are kr. 2,000 for the gold coin and kr. 200 for the silver coin.

The coins are legal tender and can be exchanged at Danmarks Nationalbank at face value.

Photo gallery
Pictures of the coin can be downloaded from www.nationalbanken.dk – Press room, Photogallery.

20 July 2006: " The Snow Queen" – a fairy tale in gold and silver
A little less than 162 years after Hans Christian Andersen published his famous fairy tale " The Snow Queen" , the same fairy tale is now the motif on a new coin issued by Danmarks Nationalbank. The fairy tale coin will be issued on 30 August 2006. Sculptor Øivind Nygård has created the motif to the new fairy tale coin.

"The Snow Queen is a fairy tale full of metamorphoses. Images are recreated and transformed into other images. This principle has also been applied to the coin, which progresses from snow crystals – to the figure of a woman – to shards of glass" , says Øivind Nygård, who also created the motif to the tower coin with Landet Church.

"The Snow Queen" is the fourth in a series of five coins with fairy tales as their common theme. The obverse of the coin is similar to the ordinary 10-krone coin and shows a profile of the queen.

Gold and silver coins in limited editions
The fairy tale coin is a 10-krone issued in three versions – a gold coin, a silver coin, and an ordinary 10-krone coin. The gold and silver coins are minted in editions not exceeding 4,000 and 40,000, respectively. The ordinary 10-krone coin is issued in an edition of 1.2 million. All fairy tale coins are legal tender and can be exchanged at Danmarks Nationalbank at face value.

Where to buy the fairy tale coin
The Royal Mint has become its own website www.royalmint.dk. As from 20 July 2006 you can order the coins on this website. On the website you can find information about the other fairy tale coins, the tower coins, medals, production of coins and more.

"The Snow Queen" can also be purchased from banks, coin dealers and Danmarks Nationalbank. Some banks and coin dealers already take orders now.

The recommended retail prices including Danish VAT are DKK 2,000 for the gold coin and DKK 200 for the silver coin.

The fairy tale continues
The fifth and final fairy tale coin will be issued in the spring of 2007.

Pictures of the coin can be downloaded from www.nationalbanken.dk or from The Royal Mint's new website www.royalmint.dk.

17 August 2006: New tower coin with cairns from Greenland
The cairns called Nukariit (Three Brothers) on Greenland are the motif on the ninth in the series of tower coins issued by Danmarks Nationalbank. The new tower coin is issued on 27 September 2006 and will be presented at a press conference in Nuuk, Greenland.

The Three Brothers are three stone cairns that mark the sheltered water route off the west coast of Greenland. For several hundred years the cairns have been an important landmark for navigators. The motif is designed by the Greenlandic artist Niels Motzfeldt as a depiction of the three cairns with Greenland's rock rose symbol in the background.

First coin with a motif from Greenland
Three Brothers is the first Danish circulating coin with a motif from Greenland.

The tower coins are a series of ten different 20-krone coins with towers as their common theme. The coins are of the same size and alloy as the ordinary circulating 20-krone coins, but are distinguished by a tower motif on the reverse. As always, the obverse carries a portrait of the Queen in profile.

Coin set in spring 2007
The new Three Brothers tower coin is minted in an edition of 1.2 million and as from 27 September can be purchased from banks in Denmark and Greenland and from Danmarks Nationalbank. The coin can also be ordered from The Royal Mint's website www.royalmint.dk.

The next – and last – coin in the series will be issued in the spring of 2007, when Danmarks Nationalbank will also issue a coin set of all ten tower coins.

Press photos
Photos of the coin can be downloaded from www.nationalbanken.dk – under Press room, Photogallery or from The Royal Mint's website www.royalmint.dk.

4 September 2006: Coin Set 2006 from The Royal Mint
The maritime is the theme of the coin set of this year, issued on 16 October 2006. In addition to the seven ordinary coins in circulation, the coin set includes a copy of a medal from the year 1691 with the Floating Dock in the Sound off Copenhagen as motif. The medal recalls a time when the skills of its Navy were the pride of Denmark. The Floating Dock was in use until 1713, after which it became part of the foundation of the coast battery " Prøvestenen" .

The coin set is minted in two versions
The ordinary version of the coin set includes the seven ordinary coins in circulation and the medal of Nordic gold. The coins are minted with two strokes. This is one stroke more than the coins in circulation. The more strokes, the more distinct the embossment. This version of the set is minted in an edition of maximum 35,000.

The proof version includes the medal in silver and the coins in circulation in an especially fine quality minted with three strokes. The proof version is minted in an edition of maximum 2,500.

Where to buy the coin sets
On the new website of the Royal Mint www.royalmint.dk the coin sets can be ordered from 4 September 2006. Banks and coin dealers also take orders. The retail price is DKK 200 for the ordinary version and DKK 875 for the proof version.

The coin sets can also be purchased from Danmarks Nationalbank, Banking Services, Havnegade 5, DK-1093 Copenhagen K, from 16 October 2006. The opening hours are Monday-Friday from 10.00 a.m. to 1.00 p.m.

More information and pictures
See www.nationalbanken.dk and www.royalmint.dk for further information and pictures.

30 January 2007: Two artists chosen for banknote design
Danmarks Nationalbank has asked the artists Kaspar Bonnén and Karin Birgitte Lund to elaborate on their respective draft proposals for the design of a new Danish banknote series. They have been chosen among the eight draft proposals published by Danmarks Nationalbank on 11 January. On the basis of the detailed proposals, Danmarks Nationalbank will take the final decision on which of the two proposals is most appropriate for a new Danish banknote series.

The draft proposals from Kaspar Bonnén and Karin Birgitte Lund both have great potential, but neither can be used as it stands. In the period until 1 May 2007, the two artists will therefore elaborate on their proposed designs.

Shortly afterwards, Danmarks Nationalbank will announce which of the two artists it has chosen to design the new Danish banknote series.

The eight draft proposals are exhibited in Danmarks Nationalbank's lobby on weekdays between 9.00 a.m. and 4.00 p.m. until 2 February.

22 February 2007: New coin series with Polar theme
To mark the International Polar Year, Danmarks Nationalbank launches the first coin in a new series of polar coins on 26 March 2007.

The new Polar series will comprise three coins, which will be issued in the period 2007 to 2009. 

The motif of the first coin is a polar bear. The polar bear is chosen because of its great importance to the Greenland culture. On the coin you will see the polar bear standing on a split ice floe. The motif is designed by the Greenland artist Niels Motzfeldt, who also designed the motif on the tower coin " Three Brothers" . The obverse of the coin carries a portrait of the Queen in profile.

The Polar coin is minted as a 10-krone coin in 1.2 million copies and will be part of the ordinary coin circulation. The Polar coin will also be issued as collector coins in fine silver and gold. The silver version will have the face value of 100 kroner, while the gold coin will have a face value of 1,000 kroner. The recommended retail prices including Danish VAT are DKK 2,500 for the gold coin and DKK 300 for the silver coin. The gold and silver coins are minted in a number not exceeding 6,000 and 50,000, respectively. 

The gold coins are minted in gold originating from Greenland. Danmarks Nationalbank has acquired the gold from the Nalunaq Gold Mine by Nanortalik in the South of Greenland. This goldmine also delivered the gold to the wedding rings of the Danish Crown Prince and Crown Princess. It is the first time that a coin is minted in gold originating from Greenland. The legend on the gold coin also shows a small polar bear, which is used as a symbol for gold originating from Greenland. 

The Polar coins can be purchased from banks, coin dealers and Danmarks Nationalbank from 26 March. The coins can also be acquired from the website of the Royal Mint, www.royalmint.dk, where orders can be placed as from today. Pictures of the coin can also be downloaded from this website.