Report and Accounts 2003

Interest-rate changes

6 March 2003 on interest rate reduction
The discount rate and the rate of interest on the banks' current accounts with Danmarks Nationalbank are lowered by 0.25 per cent to 2.50 per cent. Danmarks Nationalbank's lending rate and the rate of interest on certificates of deposit are lowered by 0.25 per cent to 2.70 per cent. The reduction will have effect as from 7 March 2003.

The interest rate reduction is a consequence of the lowering by 0.25 per cent to 2.50 per cent in the European Central Bank's minimum bid rate on the main refinancing operations.

6 June 2003 on interest rate reduction
The discount rate and the rate of interest on the banks' current accounts with Danmarks Nationalbank are lowered by 0.50 per cent to 2.00 per cent. Danmarks Nationalbank's lending rate and the rate of interest on certificates of deposit are lowered by 0.50 per cent to 2.15 per cent. The reduction will have effect as from 6 June 2003.

The interest rate reduction is a consequence of the lowering by 0.50 per cent to 2.00 per cent in the European Central Bank's minimum bid rate on the main refinancing operations.

The Board of Directors and the Committee of Directors

19 March 2003 on Report and Accounts for 2002 and elections to the Board and Committee of Directors

At the meeting of the Board of Directors of Danmarks Nationalbank held today the Board of Governors presented the Report for 2002. The Report was noted.

The Accounts for 2002 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.

Accounts
The net profit for the year was kr. 6,664 million, compared to kr. 4,794 million in 2001.

Net income from interest fell from kr. 5,479 million to kr. 4,955 million in 2002, while value adjustments rose from kr. 124 million to kr. 2,124 million.

Expenses were by and large unchanged at kr. 505 million. Other ordinary income amounted to kr. 101 million.

The profit is allocated as follows:

Transfer of kr. 2,124 million – equivalent to the value adjustments for the year – to the Value Adjustment Reserve.
Allocation of kr. 908 million – or 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. 3,632 million is transferred to the central government. For 2001 the amount transferred was kr. 3,269 million.

The Report and Accounts for 2002 are published today. The publication can be viewed at www.nationalbanken.dk under Publications, and can be obtained from Danmarks Nationalbank as from 24 March 2003.

Elections to the Board of Directors
The five-year terms of three of the 25 members of the Board of Directors expire on 31 March 2003. The Board of Directors re-elected Mr. Søren Bjerre-Nielsen, Group President and Mr. Knud Koch Jensen, Engineer, and elected Mr. Niels Boserup, Managing Director to succeed Mr. Helge Sørensen, Consulting Civil Engineer, who could not be re-elected on grounds of age.

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. Pernille Blach Hansen, 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, Ministry of Economic and Business Affairs, and Mr. Michael Lunn, Permanent Secretary, Ministry of Justice, are appointed by the Royal Bank Commissioner for the period ending in 2006.

31 March 2003 on election of Chairman and Deputy Chairman of the Committee of Directors of Danmarks Nationalbank
The Committee of Directors of Danmarks Nationalbank has re-elected Professor Hans E. Zeuthen as Chairman and Permanent Secretary Michael Dithmer as Deputy Chairman for the term running from 1 April 2003 to 31 March 2004.

10 December 2003 on election to the Committee of Directors of Danmarks Nationalbank
Ms. Pernille Blach Hansen, MP, has withdrawn from the Committee of Directors. The Board of Directors has elected Ms. Pia Gjellerup, MP, as new member of the Committee of Directors for the remainder of the term ending on 31 March 2004.

Publications

14 May 2003: Financial Stability 2003
Danmarks Nationalbank today publishes its annual report on financial stability in Denmark, "Financial Stability 2003". 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 business enterprises and households. The approach is to consider the general risks to the financial system, and not the situation of the individual financial institutions. That is the task of the Danish Financial Supervisory Authority.

In connection with the publication Governor Bodil Nyboe Andersen says:

"The Danish banking institutions' earnings are still good, and losses and provisions have even declined. Capital adequacy has generally increased slightly in 2002, which is in harmony with the greater uncertainty concerning the economic development. Our analysis shows that the banking institutions are slightly more resilient to losses than one year ago. The uncertainty is instead associated with the economic outlook."

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.

"Developments in the financial markets with falling stock prices and interest rates had negative consequences, especially for the pension sector," Bodil Nyboe Andersen continues. "There have been capital losses on stocks, and the capital gains on the bond portfolios are not sufficient to cover the need for further provisions for pension commitments. Overall, however, the pension companies have been able to increase their reserves due to changed accounting rules."

The second part of the report includes four current topics in relation to financial stability. These are pension companies, cross-border groups, the capital structure of banking institutions, and CLS and payment-system stability.

20 June 2003: Danmarks Nationalbank publishes new edition of book on monetary policy
Today Danmarks Nationalbank publishes a new edition of "Monetary Policy in Denmark". The first edition was published in 1999 (in Danish only).

The aim of the book is to offer interested parties a comprehensive presentation of the Danish approach to monetary policy and of the relation between monetary policy in theory and practice.

Chapter 1 describes Denmark's fixed-exchange-rate policy vis-à-vis the euro, and Danmarks Nationalbank's setting of the short-term interest rate. Chapter 2 presents an overview of the Danish money and foreign-exchange market. Chapter 3 considers the factors influencing Danish interest and exchange rates, as well as the significance of fluctuations in interest and exchange rates for the Danish economy. Finally, Chapter 4 outlines the strategy for Danish monetary policy compared to monetary policy in other countries.

An English translation will be published in autumn 2003.

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.

Appointments

9 May 2003
As of 1 June 2003 state-authorised public accountant Jan Birkedal has been appointed Chief Auditor and taken over the management of Danmarks Nationalbank's Audit department. Jan Birkedal succeeds Peter Jochimsen, who has taken up a position outside Danmarks Nationalbank. Jan Birkedal, aged 55, was previously employed by firm of accountants Grant Thornton since 1989.

On the retirement of Hans Kloch, GeneraI Manager of the Banknote Printing Works, the management of the Banknote Printing Works is taken over by Ejner Petersen. In this connection the Committee of Directors of Danmarks Nationalbank has appointed Ejner Petersen to Director as of 1 August 2003. Ejner Petersen, aged 58, has held positions at Danmarks Nationalbank since 1969, most recently as Head of Facility Services.

The new Head of Facility Services is Erik Lundgreen Hansen, previously Head of Division. Erik Lundgreen Hansen, aged 53, has held appointments at Danmarks Nationalbank since 1976.

10 December 2003
The Committee of Directors of Danmarks Nationalbank has appointed Winnie Jakobsen, Assistant Head of Division, to Head of Division. Winnie Jakobsen is assistant head of the Secretariat and her tasks include external and internal communication.

Winnie Jakobsen, 43, holds an MSc (Econ) and has held positions at Danmarks Nationalbank since 1991.

27 January 2004
New Head of Market Operations as from 1 April 2004

As from 1 April 2004, Jesper Berg, Head of Division, is appointed Head of Market Operations. Jesper Berg will replace Hans Denkov, who will be assigned to project-related tasks.

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.

Banknotes and coins

16 January 2003 on new Faroese 100-Krone Banknote
Today a new 100-krone banknote is introduced on the Faroe Islands. The banknote is the second in the new series of Faroese banknotes.

The motif on the face of the banknote is a fragment of a cod. Behind the motif is a watercolour with sea elements. The motif on the reverse of the banknote is a view of Klaksvík – one of the most important Faroese fishing ports – reproduced from a watercolour by Zacharias Heinesen.

The new 100-krone banknote measures 135x72 mm and its primary colour is dusty yellow.

A new security feature
Compared to the 50-krone banknote, issued in 2001, the 100-krone banknote has the additional security feature of a hologram. With the existing security features – such as the window thread with colour change and the watermark – it makes Faroese banknotes even more difficult to counterfeit.

The new banknote series
The other three banknotes in the new series are expected to be issued during the next two years. All of the banknotes in the new series depict fragments of Faroese fauna as the key motifs on the face of the notes. On the reverse, the banknotes reproduce watercolours of Faroese landscapes by Zacharias Heinesen.

Old banknotes are still legal tender
The old 100-krone banknote remains legal tender, but will be gradually withdrawn from circulation.

More information
A folder on the new banknote is distributed to all Faroese households as from 20 January 2003. A press conference has been held to present the banknote. More information is available under Notes and coins at www.nationalbanken.dk.

8 April 2003 on new 200-krone banknote – new security features, but same motifs
On 9 April 2003 Danmarks Nationalbank will issue a more secure 200-krone banknote with a hologram and fluorescent colours. The motifs remain unchanged, i.e. the portrait of the actress Johanne Luise Heiberg on the face of the banknote and a lion on the reverse. The lion is also featured on the new hologram and in the invisible motif which becomes visible under ultraviolet light. The new enhanced security features will make the Danish banknotes even harder to counterfeit.

Old banknotes still legal tender
The old 200-krone banknotes are still legal tender, but will be withdrawn from circulation on an ongoing basis. For a period the two varieties of the 200-krone banknote will be in parallel circulation.

The upgrading continues
The next banknote with new and enhanced security features will be the 500-krone banknote to be issued later in the year. The 100-krone banknote was the first to be upgraded, and it was issued in November 2002. The entire banknote series is expected to be upgraded with the new security features within the next two years.

More information
The information folder "New banknote security", which was distributed to all households last year concurrently with the issue of the first upgraded banknote, is available at www.nationalbanken.dk under Notes and coins where you can also read more about the new 200-krone banknote and the new security features.

30 April on thematic coin with Børsen's dragon spire
The characteristic spire of the old Copenhagen Stock Exchange, Børsen, with four intertwined dragon tails, is the motif for the second coin

in Danmarks Nationalbank's series of thematic coins that have towers as their common theme. Børsen was built in 1618-1624 by King Christian IV to mark Copenhagen's increasing importance as a trading centre. The dragon tails were said to protect Børsen against fire and foe.

The thematic coin is issued as a 20-krone coin, and the motif on the face of the coin is the Queen in profile, facing right, as on the ordinary 10- and 20-krone coins in circulation. The coin is of the same size and alloy as the circulating 20-krone coin. It will be minted in an edition of approximately one million coins, and can be used as an ordinary 20-krone coin. The coin can be purchased at face value from banks and Danmarks Nationalbank as from 1 May 2003.

Governor Torben Nielsen motivates Danmarks Nationalbank's decision to issue thematic coins and explains why towers were chosen as the theme:

"The reason for issuing a series of thematic coins is the wish to introduce new artists to the work of designing coins, so that Denmark will have more artists that master this special art. New motifs also stimulate interest in coins among the general public. 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."

The sculptor Karin Lorentzen designed the relief of Børsen, and comments on her work with the coin:

"The tower is a beautiful symbol of artistic extravagance and richness which is not designed to impress by being largest and most authoritative, but which charms us with its delicate, sophisticated form and artful dragons. I have stressed this by shifting the position of the tower in relation to the central vertical axis of the coin, and by placing emphasis on the gaps. It is possible to look through the tower chamber below the dragons, which underlines the lightness of the tower."

The first thematic coin had Aarhus City Hall Tower as its motif and was issued in December 2002. Towards the end of 2003 the third coin in the series will be issued, featuring the tower of Christiansborg Palace.

The motifs for future thematic coins will be chosen on the basis of the many suggestions submitted to Danmarks Nationalbank by the public. Importance will be attached to achieving a certain geographical distribution, as well as architectonic and graphical diversity.

21 August 2003 on 20-krone coin with new reverse
On 21 August 2003 Danmarks Nationalbank issues the 20-krone coin with a new reverse side. The reverse still depicts the small coat of arms, comprising three lions and nine hearts under a crown. On the new version the lions are now more distinct. The crown has been made lighter and simpler, but still contains fine details. It now rests on four oak leaves. The oak leaves emphasise the connection between the lions and the crown.

This is the first time that the 20-krone coin is given a new reverse side since the coin was put into circulation 13 years ago. The portrait on the obverse of Queen Margrethe has been changed twice during that period.

The new reverse side of the coin creates a stylistic relation between the obverse and reverse sides of the coin. The new reverse is the work of the sculptor, Professor Mogens Møller, who also designed the portrait of Queen Margrethe.

The coins with the new reverse will be included in the year's coin set from The Royal Mint. Coins with the existing reverse side may still be used. As from 2004 the new reverse side will also be used on the 10-krone coins.

4 September on coin set 2003
The Royal Mint's 2003 coin set will be available from banks and coin dealers from 1 October 2003, although many of these already take orders now.

The coins in the coin set have a more distinct embossment than the ordinary coins in circulation, since they are minted with two strokes. Ordinary coins are minted with only one stroke. The coins are packed in special packaging intended for collectors.

This year's coin set includes two thematic coins: the 20-krone coin with Århus City Hall Tower and the 20-krone coin with the dragon spire of

the old Copenhagen Stock Exchange. The 20-krone with the new reverse is also included in the set, together with the 1-krone, 50-øre and 25-øre coins. The 2003 coin set is minted in an edition of approximately 35,000 sets.

Recommended retail price: DKK 170.00.

Any remaining coin sets will be sold from 1 October 2003 from Danmarks Nationalbank, Banking Services, Havnegade 5, DK-1093 Copenhagen K. To order the coin set by post, please pay the amount – DKK 170.00 plus postage of DKK 80.00 per package, in total DKK 250.00 – to account no. 1005 0006353-9. Please state name and full address.

24 September 2003 on new 500-krone banknote – new security features, but same motifs
On 24 September 2003 Danmarks Nationalbank will issue a more secure 500-krone banknote with a hologram and fluorescent colours. The motifs remain unchanged, i.e. the portrait of the nuclear physicist Niels Bohr on the face of the banknote and a knight fighting a dragon on the reverse.

Hologram and fluorescent colours
The motifs of the new hologram are the figure 500, an atom and a "D" (Roman numeral for 500). The face and reverse feature fluorescent colours which shine under ultraviolet light. The knight from the reverse also appears on the face of the banknote, but is only visible under ultraviolet light. The orange colour on the reverse also shines under ultraviolet light.

The new enhanced security features will make the Danish banknotes even harder to counterfeit.

Old banknotes still legal tender
The old 500-krone banknotes are still legal tender, but will be withdrawn from circulation on an ongoing basis. For a period the two varieties of the 500-krone banknote will be in parallel circulation.

The upgrading continues
Most of the banknotes in the series have now been upgraded with the new security features. The remaining two banknotes – 50- and 1,000-kroner – are expected to be upgraded within 1½ years.

Further information
At Danmarks Nationalbank's website, www.nationalbanken.dk, under Notes and coins, you will find further information, including the folder "New security for banknotes". Pictures of the new security features are also provided under Press room/Photogallery/Banknotes.

20 November 2003 on thematic Coin with Christiansborg Palace Tower
A festive Christiansborg Palace Tower decorated with flags is the motif of the third thematic coin. The coin is issued by Danmarks Nationalbank on 20 November 2003. The Palace was built after a fire had destroyed its predecessor in 1884. The characteristic tower with three crowns and a weather-vane is a later addition. Christiansborg Palace houses the Danish Parliament, the Folketing, as well as the Royal Reception Rooms, the Danish Supreme Court and the Prime Minister's Office.

The relief of Christiansborg Palace Tower was designed by the Faroese sculptor Hans Pauli Olsen. He comments on his work on the coin: "It has been an exciting and challenging task to design the coin. After many remodellings I am proud to present the result. This is the first time I have made something that so many people will hold in their hands."

Governor Torben Nielsen comments on Danmarks Nationalbank's decision to issue thematic coins: "New motifs stimulate interest in coins among the general public. 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."

The Christiansborg coin is issued as a 20-krone coin with the sculptor Professor Mogens Møller's portrait of the Queen on its face. The coin is of the same size and alloy as the ordinary circulating 20-krone coin, and can be used as an ordinary 20-krone coin. It is minted in an edition of approximately one million coins. The coin can be purchased at face value from banks and Danmarks Nationalbank, Banking Services, as from today.

The next thematic coin will be issued in 2004. The tower motif has been selected from among the many suggestions Danmarks Nationalbank has received from people all over Denmark.

19 January 2004 on 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 145x72 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 year.

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

11 February 2004 on 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.

Danmarks Nationalbank will be closed on 31 December

15 April 2003
In future, Danish banks will be closed on New Year's Eve, i.e. 31 December, cf. the press release from the Danish Bankers Association dated 14 April 2003. As a consequence, Danmarks Nationalbank will also be closed on that date. The first time will be 31 December 2003.

The new closing day means that Danmarks Nationalbank will not fix exchange rates and reference interest rates on 31 December.

The Danish part of Target will be open on 31 December.

Nordic Central Banks Conclude MoU on Financial Crisis Management

12 June 2003
At their meeting in Stykkishólmur, Iceland, on 11 June 2003, the Governors of the central banks of Denmark, Finland, Iceland, Norway and Sweden signed a Memorandum of Understanding (MoU) on financial crisis management. The MoU is applicable when a severe problem occurs in a bank which is domiciled in a Nordic country and has cross-border establishments in other Nordic countries.

The experience gained from banking problems in some Nordic countries in the early 1990s clearly showed the need for central banks to act quickly in a bank crisis situation. In recent years, a number of banks have established themselves outside their countries of domicile – including several banks in the Nordic area – and this makes it necessary for central banks to undertake joint analysis, discussion and action in the event of a financial crisis.

The MoU is applicable to a crisis in any bank, which is domiciled in a Nordic country and has at least one cross-border establishment in the area. The MoU deals only with the cooperation between the central banks and does not affect other international agreements, such as the agreement on crisis management between the central banks and national bank supervisory authorities in the European System of Central Banks (ESCB). Nonetheless, the MoU clearly points out the need for close cooperation between the central banks and the bank supervisors on a continuous basis, but particularly in a crisis situation.

The focus of the Nordic MoU is on practical arrangements. It states that any central bank may call for a meeting of a "crisis management group" comprising high-level central bank officials. Furthermore, it indicates which central bank should take the leading role and outlines the contacts that need to be made with bank supervisors, ministries of finance, bank managers and other parties. The MoU also specifies which information should be obtained and analysed from the bank concerned. Finally, the MoU calls for coordination of the information which the central banks provide to outside parties.

Since each individual crisis situation is different, the MoU does not indicate which remedial measures will be taken. However, since the MoU concerns cooperation between central banks, the possibility to provide liquidity will be a main issue.

The MoU will be available on www.nationalbanken.dk during next week.

Danmarks Nationalbank's acquisition of shares in PBS has been completed

30 June 2003
Danmarks Nationalbank's acquisition of 17.7 per cent of the shares in PBS Holding A/S from Danske Bank has now been completed. Danmarks Nationalbank agreed to purchase the shares in December 2002, cf. the press release of 12 December 2002. The purchase was subject to a number of conditions, including the approval of the competition authorities. These conditions have now been fulfilled, and the acquisition was completed as of 30 June 2003.

Danish krone is introduced in CLS

8 September 2003
As of 8 September 2003 the Danish krone is introduced as an eligible currency of CLS Bank International ("CLS Bank"). CLS bank therefore now settles payments instructions in 11 currencies: US, Canadian and Australian dollars, euro, pounds sterling, Swiss francs, Japanese yen, and now also Danish and Norwegian kroner and Swedish kronor, as well as Singapore dollars.

The world's largest banks established CLS Bank as a private bank with the objective of reducing settlement risk in currency trading. In the CLS settlement process, the parties to a trade report their trading instructions to CLS Bank, which then matches the instructions and the two sides of the trade are settled simultaneously via the parties' accounts with CLS Bank. The settlement fulfils the payment-versus-payment principle and eliminates the credit risk that traditionally arises between parties whose FX transactions are settled via the usual international payment channels.

"With the introduction of the Danish krone in CLS, settlement risk in foreign-exchange transactions in Danish kroner can be reduced significantly. FX settlement risk is one of the most substantial remaining risks in the payment systems and consequently we hope the CLS system will be widely used," says Mr. Torben Nielsen, Member of the Board of Governors.

Further information on CLS is available at www.nationalbanken.dk under Tasks/Payment systems/CLS.

New balance of payments benefits the business community

29 September 2003
As from 2005 Statistics Denmark and Danmarks Nationalbank are to amend the method of collecting data for the compilation of Denmark's balance of payments. The purpose is to ensure an up-to-date, reliable balance of payments, and to reduce the burdens on the business community. It has become increasingly difficult to maintain quality as cross-border payments no longer fall into the patterns for funds transfers of previous times, but now to a high degree consist of complex transactions for trading of services, securities and investments.

"The current compilation method has become outdated. The restructuring will ease the burden on the business community considerably," states Governor Torben Nielsen of Danmarks Nationalbank.

The adjustment entails that the banks' reporting of customers' inward and outward foreign payments will lapse. It is replaced by direct reports from companies that undertake large external transactions. After the restructuring only approximately 2,500 companies in total will report data, whereas currently the payments of 25,000 companies are reported via the banks.

Jan Plovsing, Director General, National Statistician, of Statistics Denmark emphasises that: "It is important that we ensure the future quality of the balance of payments since it is a key statistical tool in analysing the course of the Danish economy".

The new compilation method is to be presented to the business community during autumn and winter 2003 via e.g. letters and seminars. Most of the information to be collected is already available in the companies' accounting systems. Companies will be offered a wide range of options for reporting and automatic submission of information.

More details of the restructuring are available at: www.nationalbanken.dk overview, and at www.dst.dk/betalingsbalance.


					Publication overview - Contents - Top/Bottom - Previous/Next
				Press Releases
					Interest-rate changes 6 March 2003 on interest rate reduction The discount rate and the rate of interest on the banks' current accounts with Danmarks Nationalbank are lowered by 0.25 per cent to 2.50 per cent. Danmarks Nationalbank's lending rate and the rate of interest on certificates of deposit are lowered by 0.25 per cent to 2.70 per cent. The reduction will have effect as from 7 March 2003. The interest rate reduction is a consequence of the lowering by 0.25 per cent to 2.50 per cent in the European Central Bank's minimum bid rate on the main refinancing operations. 6 June 2003 on interest rate reduction The discount rate and the rate of interest on the banks' current accounts with Danmarks Nationalbank are lowered by 0.50 per cent to 2.00 per cent. Danmarks Nationalbank's lending rate and the rate of interest on certificates of deposit are lowered by 0.50 per cent to 2.15 per cent. The reduction will have effect as from 6 June 2003. The interest rate reduction is a consequence of the lowering by 0.50 per cent to 2.00 per cent in the European Central Bank's minimum bid rate on the main refinancing operations. The Board of Directors and the Committee of Directors 19 March 2003 on Report and Accounts for 2002 and elections to the Board and Committee of Directors At the meeting of the Board of Directors of Danmarks Nationalbank held today the Board of Governors presented the Report for 2002. The Report was noted. The Accounts for 2002 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. Accounts The net profit for the year was kr. 6,664 million, compared to kr. 4,794 million in 2001. Net income from interest fell from kr. 5,479 million to kr. 4,955 million in 2002, while value adjustments rose from kr. 124 million to kr. 2,124 million. Expenses were by and large unchanged at kr. 505 million. Other ordinary income amounted to kr. 101 million. The profit is allocated as follows: Transfer of kr. 2,124 million – equivalent to the value adjustments for the year – to the Value Adjustment Reserve. Allocation of kr. 908 million – or 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. 3,632 million is transferred to the central government. For 2001 the amount transferred was kr. 3,269 million. The Report and Accounts for 2002 are published today. The publication can be viewed at www.nationalbanken.dk under Publications, and can be obtained from Danmarks Nationalbank as from 24 March 2003. Elections to the Board of Directors The five-year terms of three of the 25 members of the Board of Directors expire on 31 March 2003. The Board of Directors re-elected Mr. Søren Bjerre-Nielsen, Group President and Mr. Knud Koch Jensen, Engineer, and elected Mr. Niels Boserup, Managing Director to succeed Mr. Helge Sørensen, Consulting Civil Engineer, who could not be re-elected on grounds of age. 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. Pernille Blach Hansen, 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, Ministry of Economic and Business Affairs, and Mr. Michael Lunn, Permanent Secretary, Ministry of Justice, are appointed by the Royal Bank Commissioner for the period ending in 2006. 31 March 2003 on election of Chairman and Deputy Chairman of the Committee of Directors of Danmarks Nationalbank The Committee of Directors of Danmarks Nationalbank has re-elected Professor Hans E. Zeuthen as Chairman and Permanent Secretary Michael Dithmer as Deputy Chairman for the term running from 1 April 2003 to 31 March 2004. 10 December 2003 on election to the Committee of Directors of Danmarks Nationalbank Ms. Pernille Blach Hansen, MP, has withdrawn from the Committee of Directors. The Board of Directors has elected Ms. Pia Gjellerup, MP, as new member of the Committee of Directors for the remainder of the term ending on 31 March 2004. Publications 14 May 2003: Financial Stability 2003 Danmarks Nationalbank today publishes its annual report on financial stability in Denmark, "Financial Stability 2003". 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 business enterprises and households. The approach is to consider the general risks to the financial system, and not the situation of the individual financial institutions. That is the task of the Danish Financial Supervisory Authority. In connection with the publication Governor Bodil Nyboe Andersen says: "The Danish banking institutions' earnings are still good, and losses and provisions have even declined. Capital adequacy has generally increased slightly in 2002, which is in harmony with the greater uncertainty concerning the economic development. Our analysis shows that the banking institutions are slightly more resilient to losses than one year ago. The uncertainty is instead associated with the economic outlook." 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. "Developments in the financial markets with falling stock prices and interest rates had negative consequences, especially for the pension sector," Bodil Nyboe Andersen continues. "There have been capital losses on stocks, and the capital gains on the bond portfolios are not sufficient to cover the need for further provisions for pension commitments. Overall, however, the pension companies have been able to increase their reserves due to changed accounting rules." The second part of the report includes four current topics in relation to financial stability. These are pension companies, cross-border groups, the capital structure of banking institutions, and CLS and payment-system stability. 20 June 2003: Danmarks Nationalbank publishes new edition of book on monetary policy Today Danmarks Nationalbank publishes a new edition of "Monetary Policy in Denmark". The first edition was published in 1999 (in Danish only). The aim of the book is to offer interested parties a comprehensive presentation of the Danish approach to monetary policy and of the relation between monetary policy in theory and practice. Chapter 1 describes Denmark's fixed-exchange-rate policy vis-à-vis the euro, and Danmarks Nationalbank's setting of the short-term interest rate. Chapter 2 presents an overview of the Danish money and foreign-exchange market. Chapter 3 considers the factors influencing Danish interest and exchange rates, as well as the significance of fluctuations in interest and exchange rates for the Danish economy. Finally, Chapter 4 outlines the strategy for Danish monetary policy compared to monetary policy in other countries. An English translation will be published in autumn 2003. 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. Appointments 9 May 2003 As of 1 June 2003 state-authorised public accountant Jan Birkedal has been appointed Chief Auditor and taken over the management of Danmarks Nationalbank's Audit department. Jan Birkedal succeeds Peter Jochimsen, who has taken up a position outside Danmarks Nationalbank. Jan Birkedal, aged 55, was previously employed by firm of accountants Grant Thornton since 1989. On the retirement of Hans Kloch, GeneraI Manager of the Banknote Printing Works, the management of the Banknote Printing Works is taken over by Ejner Petersen. In this connection the Committee of Directors of Danmarks Nationalbank has appointed Ejner Petersen to Director as of 1 August 2003. Ejner Petersen, aged 58, has held positions at Danmarks Nationalbank since 1969, most recently as Head of Facility Services. The new Head of Facility Services is Erik Lundgreen Hansen, previously Head of Division. Erik Lundgreen Hansen, aged 53, has held appointments at Danmarks Nationalbank since 1976. 10 December 2003 The Committee of Directors of Danmarks Nationalbank has appointed Winnie Jakobsen, Assistant Head of Division, to Head of Division. Winnie Jakobsen is assistant head of the Secretariat and her tasks include external and internal communication. Winnie Jakobsen, 43, holds an MSc (Econ) and has held positions at Danmarks Nationalbank since 1991. 27 January 2004 New Head of Market Operations as from 1 April 2004 As from 1 April 2004, Jesper Berg, Head of Division, is appointed Head of Market Operations. Jesper Berg will replace Hans Denkov, who will be assigned to project-related tasks. 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. Banknotes and coins 16 January 2003 on new Faroese 100-Krone Banknote Today a new 100-krone banknote is introduced on the Faroe Islands. The banknote is the second in the new series of Faroese banknotes. The motif on the face of the banknote is a fragment of a cod. Behind the motif is a watercolour with sea elements. The motif on the reverse of the banknote is a view of Klaksvík – one of the most important Faroese fishing ports – reproduced from a watercolour by Zacharias Heinesen. The new 100-krone banknote measures 135x72 mm and its primary colour is dusty yellow. A new security feature Compared to the 50-krone banknote, issued in 2001, the 100-krone banknote has the additional security feature of a hologram. With the existing security features – such as the window thread with colour change and the watermark – it makes Faroese banknotes even more difficult to counterfeit. The new banknote series The other three banknotes in the new series are expected to be issued during the next two years. All of the banknotes in the new series depict fragments of Faroese fauna as the key motifs on the face of the notes. On the reverse, the banknotes reproduce watercolours of Faroese landscapes by Zacharias Heinesen. Old banknotes are still legal tender The old 100-krone banknote remains legal tender, but will be gradually withdrawn from circulation. More information A folder on the new banknote is distributed to all Faroese households as from 20 January 2003. A press conference has been held to present the banknote. More information is available under Notes and coins at www.nationalbanken.dk. 8 April 2003 on new 200-krone banknote – new security features, but same motifs On 9 April 2003 Danmarks Nationalbank will issue a more secure 200-krone banknote with a hologram and fluorescent colours. The motifs remain unchanged, i.e. the portrait of the actress Johanne Luise Heiberg on the face of the banknote and a lion on the reverse. The lion is also featured on the new hologram and in the invisible motif which becomes visible under ultraviolet light. The new enhanced security features will make the Danish banknotes even harder to counterfeit. Old banknotes still legal tender The old 200-krone banknotes are still legal tender, but will be withdrawn from circulation on an ongoing basis. For a period the two varieties of the 200-krone banknote will be in parallel circulation. The upgrading continues The next banknote with new and enhanced security features will be the 500-krone banknote to be issued later in the year. The 100-krone banknote was the first to be upgraded, and it was issued in November 2002. The entire banknote series is expected to be upgraded with the new security features within the next two years. More information The information folder "New banknote security", which was distributed to all households last year concurrently with the issue of the first upgraded banknote, is available at www.nationalbanken.dk under Notes and coins where you can also read more about the new 200-krone banknote and the new security features. 30 April on thematic coin with Børsen's dragon spire The characteristic spire of the old Copenhagen Stock Exchange, Børsen, with four intertwined dragon tails, is the motif for the second coin in Danmarks Nationalbank's series of thematic coins that have towers as their common theme. Børsen was built in 1618-1624 by King Christian IV to mark Copenhagen's increasing importance as a trading centre. The dragon tails were said to protect Børsen against fire and foe. The thematic coin is issued as a 20-krone coin, and the motif on the face of the coin is the Queen in profile, facing right, as on the ordinary 10- and 20-krone coins in circulation. The coin is of the same size and alloy as the circulating 20-krone coin. It will be minted in an edition of approximately one million coins, and can be used as an ordinary 20-krone coin. The coin can be purchased at face value from banks and Danmarks Nationalbank as from 1 May 2003. Governor Torben Nielsen motivates Danmarks Nationalbank's decision to issue thematic coins and explains why towers were chosen as the theme: "The reason for issuing a series of thematic coins is the wish to introduce new artists to the work of designing coins, so that Denmark will have more artists that master this special art. New motifs also stimulate interest in coins among the general public. 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." The sculptor Karin Lorentzen designed the relief of Børsen, and comments on her work with the coin: "The tower is a beautiful symbol of artistic extravagance and richness which is not designed to impress by being largest and most authoritative, but which charms us with its delicate, sophisticated form and artful dragons. I have stressed this by shifting the position of the tower in relation to the central vertical axis of the coin, and by placing emphasis on the gaps. It is possible to look through the tower chamber below the dragons, which underlines the lightness of the tower." The first thematic coin had Aarhus City Hall Tower as its motif and was issued in December 2002. Towards the end of 2003 the third coin in the series will be issued, featuring the tower of Christiansborg Palace. The motifs for future thematic coins will be chosen on the basis of the many suggestions submitted to Danmarks Nationalbank by the public. Importance will be attached to achieving a certain geographical distribution, as well as architectonic and graphical diversity. 21 August 2003 on 20-krone coin with new reverse On 21 August 2003 Danmarks Nationalbank issues the 20-krone coin with a new reverse side. The reverse still depicts the small coat of arms, comprising three lions and nine hearts under a crown. On the new version the lions are now more distinct. The crown has been made lighter and simpler, but still contains fine details. It now rests on four oak leaves. The oak leaves emphasise the connection between the lions and the crown. This is the first time that the 20-krone coin is given a new reverse side since the coin was put into circulation 13 years ago. The portrait on the obverse of Queen Margrethe has been changed twice during that period. The new reverse side of the coin creates a stylistic relation between the obverse and reverse sides of the coin. The new reverse is the work of the sculptor, Professor Mogens Møller, who also designed the portrait of Queen Margrethe. The coins with the new reverse will be included in the year's coin set from The Royal Mint. Coins with the existing reverse side may still be used. As from 2004 the new reverse side will also be used on the 10-krone coins. 4 September on coin set 2003 The Royal Mint's 2003 coin set will be available from banks and coin dealers from 1 October 2003, although many of these already take orders now. The coins in the coin set have a more distinct embossment than the ordinary coins in circulation, since they are minted with two strokes. Ordinary coins are minted with only one stroke. The coins are packed in special packaging intended for collectors. This year's coin set includes two thematic coins: the 20-krone coin with Århus City Hall Tower and the 20-krone coin with the dragon spire of the old Copenhagen Stock Exchange. The 20-krone with the new reverse is also included in the set, together with the 1-krone, 50-øre and 25-øre coins. The 2003 coin set is minted in an edition of approximately 35,000 sets. Recommended retail price: DKK 170.00. Any remaining coin sets will be sold from 1 October 2003 from Danmarks Nationalbank, Banking Services, Havnegade 5, DK-1093 Copenhagen K. To order the coin set by post, please pay the amount – DKK 170.00 plus postage of DKK 80.00 per package, in total DKK 250.00 – to account no. 1005 0006353-9. Please state name and full address. 24 September 2003 on new 500-krone banknote – new security features, but same motifs On 24 September 2003 Danmarks Nationalbank will issue a more secure 500-krone banknote with a hologram and fluorescent colours. The motifs remain unchanged, i.e. the portrait of the nuclear physicist Niels Bohr on the face of the banknote and a knight fighting a dragon on the reverse. Hologram and fluorescent colours The motifs of the new hologram are the figure 500, an atom and a "D" (Roman numeral for 500). The face and reverse feature fluorescent colours which shine under ultraviolet light. The knight from the reverse also appears on the face of the banknote, but is only visible under ultraviolet light. The orange colour on the reverse also shines under ultraviolet light. The new enhanced security features will make the Danish banknotes even harder to counterfeit. Old banknotes still legal tender The old 500-krone banknotes are still legal tender, but will be withdrawn from circulation on an ongoing basis. For a period the two varieties of the 500-krone banknote will be in parallel circulation. The upgrading continues Most of the banknotes in the series have now been upgraded with the new security features. The remaining two banknotes – 50- and 1,000-kroner – are expected to be upgraded within 1½ years. Further information At Danmarks Nationalbank's website, www.nationalbanken.dk, under Notes and coins, you will find further information, including the folder "New security for banknotes". Pictures of the new security features are also provided under Press room/Photogallery/Banknotes. 20 November 2003 on thematic Coin with Christiansborg Palace Tower A festive Christiansborg Palace Tower decorated with flags is the motif of the third thematic coin. The coin is issued by Danmarks Nationalbank on 20 November 2003. The Palace was built after a fire had destroyed its predecessor in 1884. The characteristic tower with three crowns and a weather-vane is a later addition. Christiansborg Palace houses the Danish Parliament, the Folketing, as well as the Royal Reception Rooms, the Danish Supreme Court and the Prime Minister's Office. The relief of Christiansborg Palace Tower was designed by the Faroese sculptor Hans Pauli Olsen. He comments on his work on the coin: "It has been an exciting and challenging task to design the coin. After many remodellings I am proud to present the result. This is the first time I have made something that so many people will hold in their hands." Governor Torben Nielsen comments on Danmarks Nationalbank's decision to issue thematic coins: "New motifs stimulate interest in coins among the general public. 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." The Christiansborg coin is issued as a 20-krone coin with the sculptor Professor Mogens Møller's portrait of the Queen on its face. The coin is of the same size and alloy as the ordinary circulating 20-krone coin, and can be used as an ordinary 20-krone coin. It is minted in an edition of approximately one million coins. The coin can be purchased at face value from banks and Danmarks Nationalbank, Banking Services, as from today. The next thematic coin will be issued in 2004. The tower motif has been selected from among the many suggestions Danmarks Nationalbank has received from people all over Denmark. 19 January 2004 on 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 145x72 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 year. Further information A folder on the new banknote will be distributed to Faroese households from 20 January 2004. For further information, visit www.nationalbanken.dk, Notes and coins. 11 February 2004 on 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. Danmarks Nationalbank will be closed on 31 December 15 April 2003 In future, Danish banks will be closed on New Year's Eve, i.e. 31 December, cf. the press release from the Danish Bankers Association dated 14 April 2003. As a consequence, Danmarks Nationalbank will also be closed on that date. The first time will be 31 December 2003. The new closing day means that Danmarks Nationalbank will not fix exchange rates and reference interest rates on 31 December. The Danish part of Target will be open on 31 December. Nordic Central Banks Conclude MoU on Financial Crisis Management 12 June 2003 At their meeting in Stykkishólmur, Iceland, on 11 June 2003, the Governors of the central banks of Denmark, Finland, Iceland, Norway and Sweden signed a Memorandum of Understanding (MoU) on financial crisis management. The MoU is applicable when a severe problem occurs in a bank which is domiciled in a Nordic country and has cross-border establishments in other Nordic countries. The experience gained from banking problems in some Nordic countries in the early 1990s clearly showed the need for central banks to act quickly in a bank crisis situation. In recent years, a number of banks have established themselves outside their countries of domicile – including several banks in the Nordic area – and this makes it necessary for central banks to undertake joint analysis, discussion and action in the event of a financial crisis. The MoU is applicable to a crisis in any bank, which is domiciled in a Nordic country and has at least one cross-border establishment in the area. The MoU deals only with the cooperation between the central banks and does not affect other international agreements, such as the agreement on crisis management between the central banks and national bank supervisory authorities in the European System of Central Banks (ESCB). Nonetheless, the MoU clearly points out the need for close cooperation between the central banks and the bank supervisors on a continuous basis, but particularly in a crisis situation. The focus of the Nordic MoU is on practical arrangements. It states that any central bank may call for a meeting of a "crisis management group" comprising high-level central bank officials. Furthermore, it indicates which central bank should take the leading role and outlines the contacts that need to be made with bank supervisors, ministries of finance, bank managers and other parties. The MoU also specifies which information should be obtained and analysed from the bank concerned. Finally, the MoU calls for coordination of the information which the central banks provide to outside parties. Since each individual crisis situation is different, the MoU does not indicate which remedial measures will be taken. However, since the MoU concerns cooperation between central banks, the possibility to provide liquidity will be a main issue. The MoU will be available on www.nationalbanken.dk during next week. Danmarks Nationalbank's acquisition of shares in PBS has been completed 30 June 2003 Danmarks Nationalbank's acquisition of 17.7 per cent of the shares in PBS Holding A/S from Danske Bank has now been completed. Danmarks Nationalbank agreed to purchase the shares in December 2002, cf. the press release of 12 December 2002. The purchase was subject to a number of conditions, including the approval of the competition authorities. These conditions have now been fulfilled, and the acquisition was completed as of 30 June 2003. Danish krone is introduced in CLS 8 September 2003 As of 8 September 2003 the Danish krone is introduced as an eligible currency of CLS Bank International ("CLS Bank"). CLS bank therefore now settles payments instructions in 11 currencies: US, Canadian and Australian dollars, euro, pounds sterling, Swiss francs, Japanese yen, and now also Danish and Norwegian kroner and Swedish kronor, as well as Singapore dollars. The world's largest banks established CLS Bank as a private bank with the objective of reducing settlement risk in currency trading. In the CLS settlement process, the parties to a trade report their trading instructions to CLS Bank, which then matches the instructions and the two sides of the trade are settled simultaneously via the parties' accounts with CLS Bank. The settlement fulfils the payment-versus-payment principle and eliminates the credit risk that traditionally arises between parties whose FX transactions are settled via the usual international payment channels. "With the introduction of the Danish krone in CLS, settlement risk in foreign-exchange transactions in Danish kroner can be reduced significantly. FX settlement risk is one of the most substantial remaining risks in the payment systems and consequently we hope the CLS system will be widely used," says Mr. Torben Nielsen, Member of the Board of Governors. Further information on CLS is available at www.nationalbanken.dk under Tasks/Payment systems/CLS. New balance of payments benefits the business community 29 September 2003 As from 2005 Statistics Denmark and Danmarks Nationalbank are to amend the method of collecting data for the compilation of Denmark's balance of payments. The purpose is to ensure an up-to-date, reliable balance of payments, and to reduce the burdens on the business community. It has become increasingly difficult to maintain quality as cross-border payments no longer fall into the patterns for funds transfers of previous times, but now to a high degree consist of complex transactions for trading of services, securities and investments. "The current compilation method has become outdated. The restructuring will ease the burden on the business community considerably," states Governor Torben Nielsen of Danmarks Nationalbank. The adjustment entails that the banks' reporting of customers' inward and outward foreign payments will lapse. It is replaced by direct reports from companies that undertake large external transactions. After the restructuring only approximately 2,500 companies in total will report data, whereas currently the payments of 25,000 companies are reported via the banks. Jan Plovsing, Director General, National Statistician, of Statistics Denmark emphasises that: "It is important that we ensure the future quality of the balance of payments since it is a key statistical tool in analysing the course of the Danish economy". The new compilation method is to be presented to the business community during autumn and winter 2003 via e.g. letters and seminars. Most of the information to be collected is already available in the companies' accounting systems. Companies will be offered a wide range of options for reporting and automatic submission of information. More details of the restructuring are available at: www.nationalbanken.dk overview, and at www.dst.dk/betalingsbalance.


					Publication overview - Contents - Top/Bottom - Previous/Next

Press Releases