Annex 1

The Nationalbank's Press Releases

Interest-rate changes

In view of the development in European interest rates the Nationalbank's discount rate will be raised by 1/4 per cent to 31/2 per cent with effect from October 10, 1997. Likewise, the rate of interest on the banks' current accounts with the Nationalbank is raised by 1/4 per cent to 31/2 per cent.

On October 10, the rate of interest on sale of certificates of deposit will be raised by 0.25 per cent to 3.75 per cent.

New 500-krone note

On September 12, 1997 the Nationalbank will issue a new 500-krone note. It is the second in the series of new banknotes which was introduced on the issue of the 200-krone note in March 1997.

The new note series is being issued because new developments in graphic technology have made it necessary to improve the special features which protect the notes against counterfeiting.

The faces of all the banknotes in the new series show portraits of Danish men and women who have made a contribution to art or science. The motifs on the reverse are inspired by old stone reliefs in Danish churches.

The face of the 500-krone note bears a characteristic portrait of the nuclear physicist Niels Bohr, one of the leading Danish scientists of the 20th century. The motif on the reverse is inspired by a motif from the font of Lihme Church in Salling.

The principal colour of the new note is blue. It is 1 centimetre longer than the 200-krone note. All notes in the new series are of the same height. The dimensions of the 500-krone note are 155 x 72 mm.

The new 500-krone note will be presented at a press conference at Danmarks Nationalbank shortly before it is issued. In connection with the issue a folder will be distributed to all households in Denmark with information on the security features of the note. The folder will also be available at banks. Information will also be presented in radio and TV spots.

The old 500-krone notes will remain legal tender, but will be withdrawn from circulation as they are returned to the Nationalbank. There are approximately 12 million 500-krone notes in circulation, for a value of kr. 6  billion. The circulation of 500-krone notes has increased significantly in recent years. One reason is that at the beginning of the 1990s the banks began to use the 500-krone note in cash dispensing machines.

200-krone silver commemorative coin to mark Queen Margrethe's silver jubilee

The silver 200-krone coin issued on January 6, 1997 to mark Queen Margrethe's silver jubilee on January 14, 1997 will be minted in a maximum edition of 60,000, as previously announced.

The silver coin has been in such high demand that all coins have now been sold by The Royal Mint.

Abolition of limits on current-account deposits

With effect from May 1, 1997 the limits on the banks' interest-bearing current-account deposits will be abolished. In future all of the deposit on a bank's current account will earn interest at the current-account rate. The limits were introduced together with the current monetary-policy instruments in April 1992. The objective was to develop a more efficient money market. Today the money market is well-functioning, with the participation of all major banks. This provides the basis for the abolition of the limits.

Publication of a money-market interest rate on very short-term uncollateralized inter-bank loans

With effect from May 2, 1997 the Nationalbank will on a daily basis calculate and publish a tomorrow/next inter-bank lending rate. The calculation is made on behalf of the 14 banks which report interest rates. This corresponds to the Nationalbank's role in the calculation of CIBOR.

The tomorrow/next rate is the day-to-day interest rate from tomorrow to the day after. The rate is calculated as a weighted average of the tomorrow/next rates of the 14 reporting banks. The interest rates are weighted together with the money-market loans issued by the banks concerned. The reported interest rates are based on the reporting banks' actual money-market lending in the inter-bank market.

Information on the weighted interest rate will be published via DN News and via major news agencies. The tomorrow/next rate of the previous banking day is published daily at 12.00 noon.