Report and Accounts 2002

Interest-rate changes

5 December 2002 on interest rate reduction
The discount rate and the rate of interest on the banks' current accounts with the Nationalbank are lowered by 0.50 per cent to 2.75 per cent. The Nationalbank's lending rate and the rate of interest on certificates of deposit are lowered by 0.50 per cent to 2.95 per cent. The reduction will have effect as from 6 December 2002.

The interest rate reduction is a consequence of the lowering by 0.50 per cent to 2.75 per cent in the European Central Bank's minimum bid rate on the main refinancing operations.

Publications

18 March 2002: Report and Accounts for the Year 2001
At the meeting of the Board of Directors of Danmarks Nationalbank held today the Board of Governors presented the Report for 2001. The Report was noted.

The Accounts for 2001 were submitted by the Board of Governors with the recommendation of the Committee of Directors that they be adopted. The recommendation of the approval of the Accounts was endorsed by the Board of Directors and the Royal Bank Commissioner, the Minister for Economic and Business Affairs, Mr. Bendt Bendtsen.

The net profit for the year was DKK 4,794 million, against DKK 5,698 million in 2000.

Net income from interest rose from DKK 4,929 million to DKK 5,479 million in 2001, while value adjustments fell from DKK 1,310 million to DKK 124 million, which is related primarily to negative exchange-rate adjustment.

Total expenses were broadly unchanged at DKK 514 million. Other expenditure on ordinary operations was DKK 300 million, compared to DKK 20 million in 2000. This is due to an extraordinary payment to Danmarks Nationalbank's Pension Fund.

In accordance with the established practice for allocation of profit:

DKK 124 million – equivalent to value adjustments – was transferred to the Value Adjustment Reserve.

DKK 25 million was transferred to Danmarks Nationalbank's Anniversary Foundation of 1968.

DKK 1,376 million was transferred to the General Reserves. With addItion of the transfer of DKK 25 million to Danmarks Nationalbank's Anniversary Foundation of 1968, this corresponds to 30 per cent of the profit for the year before value adjustments.

The remainder of DKK 3,269 million is payable to the central government. DKK 3,066 million was payable to the central government for 2000.

The Report and Accounts of Danmarks Nationalbank are published today. The complete English translation is available on the Website on 18 March 2002 and in a printed version on 22 March 2002.

Elections to the Board of Directors
The 5‑year term of 3 of the 25 members of the Board of Directors ends on 31 March 2002. The Board of Directors has re‑elected Ms. Jette W. Knudsen, Director, Mr. Kjeld Larsen, Farmer and Ms. Kirsten Nielsen, President of the Danish Consumer Council, and elected Mr. Niels Fog,Director, to succeed Mr. B. Frank Nielsen, General Manager, who took his retirement.

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

Elections to the Committee of Directors
The Committee of Directors has 7 members. The Board of Directors, which elects 5 members, has re‑elected Mr. Søren Bjerre‑Nielsen, Ms. Pernille Blach Hansen, Ms. Kirsten Nissen, Mr. Jens Rohde, and Mr. Hans E. Zeuthen to the Committee of Directors. All elections are 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.

At the following meeting of the new Committee of Directors the Committee of Directors re-elected Mr. Hans E. Zeuthen as Chairman and Mr. Michael Dithmer as Deputy Chairman.

10 April 2002: Danmarks Nationalbank publishes Working Paper series
Danmarks Nationalbank has published the first two issues in a new series of Working Papers. The subjects covered by Danmarks Nationalbank's Working Papers will typically relate to macroeconomic, banking or financial issues, although other topics within Danmarks Nationalbank's area may also be included. The Working Papers describe research and development, often still ongoing.

Danmarks Nationalbank's Working Paper series supplements the bank's other publications. The Working Papers are published as a contribution to the professional debate. The viewpoints and conclusions stated are the responsibility of the individual contributors, and do not necessarily reflect the views of Danmarks Nationalbank.

The Working Papers are available in PDF format under Publications at www.nationalbanken.dk. A free electronic subscription is also available at this Web site. The subscriber receives an e‑mail notification whenever new Working Papers are published. Libraries will also be able to take out subscriptions for hard copy versions of the Working Papers by contacting Danmarks Nationalbank's Information Desk on tel. +45 3363 7000, or via e‑mail to info@nationalbanken.dk.

16 May 2002: Financial Stability 2002
Today Danmarks Nationalbank publishes a new annual publication on financial stability in Denmark, "Financial Stability 2002". The publication can be found at www.nationalbanken.dk under Publications. Similar analyses have previously been published in Danmarks Nationalbank's Monetary Reviews for the 2nd quarters of 2000 and 2001. An English version will be available on 29 May 2002.

Like other national central banks, Danmarks Nationalbank performs analyses of financial stability. The approach is to consider risks and stability in the financial system, not the individual institutions in the financial sector. The latter is handled by the Danish Financial Supervisory Authority.

In connection with the publication of Financial Stability 2002, Governor Bodil Nyboe Andersen states:

"Our analyses show that overall the Danish banking institutions are robust, but there has been a slight decrease in the robustness compared to 2000. In general, the corporate sector and the households have been resilient to the economic slowdown in 2001. However, there seem to be indications of a tightening. Some sectors appear to be under pressure, e.g. the IT and telecom sector, and the banking institutions' losses and provisions increased in 2001."

The report is in two parts. The first part starts with the trends in the financial sector, primarily the banking institutions' situation. Sensitivity analyses have been conducted to determine the robustness of banking institutions' earnings to changes in interest rates, stock prices and losses and provisions. This is followed by a chapter on the corporate sector and the households, since stability in the financial sector is dependent of the finances of the customers. Finally, the trends in the financial markets are reviewed.

"Developments after the terrorist attacks on 11 September 2001 showed that generally the financial system was able to resist major shocks to the financial markets" Bodil Nyboe Andersen continues. "However, the events in the autumn of 2001 highlighted the need to operate with even very high increases in volatility in connection with the assessment of the stability of financial institutions."

The second part of the report elaborates on current issues of relevance to financial stability. These issues are: pension companies and financial stability, the banks' capital adequacy and earnings, and payment system risks. The final chapter describes methods for analysing banks in relation to financial stability.

Appointments

14 May 2002
The Committee of Directors of Danmarks Nationalbank have announced the appointment of Jens Dalsgaard, Assistant Head of Division, to Head of Division. Jens Dalsgaard has been head of Accounting's section of central bank customers, and he will in the future be deputy head of Statistics.

Jens Dalsgaard aged 38 holds an MSc in economics, and has held positions at Danmarks Nationalbank since 1989, except for 3 years in the International Monetary Fund, IMF.

6 December 2002
The Board of Governors of Danmarks Nationalbank have announced the appointments of Peter Jochimsen, Head of Department, and Bjarne Skafte, Head of Department, to Assistant Director.

As Chief Auditor Peter Jochimsen heads Audit at Danmarks Nationalbank. Peter Jochimsen is aged 50, is a State-Authorised Public Accountant, and has held positions at Danmarks Nationalbank since 1999.

Bjarne Skafte is head of the Secretariat, which among other things is responsibleforDanmarksNationalbank'sexternalcommunication.Bjarne Skafte is aged 52, holds an MSc (Econ) and has held positions at Danmarks Nationalbank since 1991.

Banknotes and coins

12 August 2002: "Kun ærlige penge tak!" – new folder on discoloured banknotes

It must not be possible to use the proceeds from robberies. Therefore, Danmarks Nationalbank and the Danish Bankers Association are jointly publishing a folder to present rules for handling discoloured and suspicious‑looking banknotes.

Banks, Post Danmark and cash-in-transit firms use anti-theft devices that, when released in the course of a bank robbery, discolour the banknotes. The anti-theft devices are released by explosion. The edges of banknotes lying close to the anti-theft devices can therefore appear burned or singed. Many bank robbers discard their booty immediately, but some of the discoloured banknotes still find their way to shops, etc.

The folder "Kun ærlige penge tak!" presents examples of banknotes that have been damaged by anti-theft devices and describes how to react if presented with suspicious‑looking banknotes. Neither shops nor private individuals should accept discoloured banknotes.

Any person who by mistake receives a discoloured banknote must hand it in to a bank. Danmarks Nationalbank will then exchange the banknote to "honest cash". In the event of gross negligence where it should have been discovered that a banknote is discoloured, burned or has been cleansed, the banknote will be withheld and the amount forfeited.

The folder is distributed via a number of trade organisations and can also be obtained from banks or by contacting Danmarks Nationalbank. The guidelines for redemption of suspicious‑looking banknotes are also presented under Notes and coins on Danmarks Nationalbank's Web site www.nationalbanken.dk.

16 September 2002 on coin Set 2002
The Royal Mint's 2002 coin set is available at banks and from coin dealers from 14 October 2002, but many of these already accept orders now.

Coins in coin sets are minted with two strokes, giving them a clearer embossment. The coins are packaged in special presentation folders for collectors. Ordinary coins are minted with only one stroke.

As from the 2002 minting year there are no initials on Danish coins. The significance of the initials is not generally known, and the increasing number of initials disturbed the overall appearance of the coins.

The 2002 coin set, which is minted in an edition of approximately 30,000, includes 20‑, 10‑, 5‑, 2‑ and 1‑krone coins, as well as 50‑ and 25‑øre coins.

Recommended retail price: DKK 140.00.

Any remaining coin sets will be sold from Danmarks Nationalbank, Banking Services, as from 14 October. The amount – DKK 140.00 plus postage of DKK 80.00, in total DKK 220.00 – can be paid to account no. 1005 0006360-7. Please state name and full address.

22 November 2002 on thematic coin with Aarhus City Hall Tower
Danmarks Nationalbank will be issuing a new series of thematic coins with towers as the common theme. Aarhus City Hall Tower has been chosen for the first coin, which is issued to mark the 100th anniversary of the architect Arne Jacobsen, who also designed the Danmarks Nationalbank building. The Aarhus tower is significant and represents the modernist style characteristic of Arne Jacobsen's architecture.

This coin is the first in a series of 7-10 coins to be issued over a number of years.

The motivation for issuing a series of thematic coins is the wish to introduce new artists to the task of designing coins, so that Denmark will have a wide range of artists mastering this special art. The new motifs may also generate greater interest in coins among the general public.

The tower motif on the first thematic coin is designed by the sculptor and graphic artist Lis Nogel. The motif on the obverse of the coin is the Queen in profile, facing right, as on the 10- and 20-krone coins in circulation.

The coin will be issued as a 20-krone coin. 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 approximately one million coins, and can be used as an ordinary 20-krone coin. Since the edition is limited, most 20-krone coins in circulation will still bear the national coat of arms on the reverse.

The coins can be purchased at face value from banks, and Danmarks Nationalbank as from 2 December.

26 November 2002 on new 100-krone banknote – enhanced security, same motifs
On 27 November 2002 a new, more secure 100-krone banknote will be issued.

Even though the 100-krone banknote is new, it is easy to recognise. There is still a portrait of Carl Nielsen on the face of the banknote and a basilisk on the reverse. The new features are a hologram and fluorescent colours which are visible under ultraviolet light. Together with the existing security features this will make Danish banknotes even harder to counterfeit.

The number of counterfeit Danish banknotes is modest. The new security features will make the banknotes more difficult to counterfeit, and it will be easier to distinguish the authentic banknotes from the counterfeit notes.

Old banknotes will remain legal tender
The old banknotes will remain legal tender, but will gradually be withdrawn from circulation.

The entire series will be upgraded
The other banknotes in the series will be issued in upgraded versions at intervals of approximately six months. The entire series is expected to be upgraded with the new security features by the end of 2004.

Information at your fingertips
A folder about the new upgraded 100-krone banknote will be distributed to households from 27 November 2002. The folder will include a handy, wallet-sized card with four of the main security features. Information will also be published via free postcards and under Banknotes and coins at www.nationalbanken.dk.

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.

Danmarks Nationalbank acquires shares in the danish securities centre (værdipapircentralen)

15 May 2002
Danmarks Nationalbank has entered into an agreement to acquire 11.22 per cent of the shares of the Danish Securities Centre (Værdipapircentralen) from Danske Bank. Danmarks Nationalbank hereafter holds 24.22 per cent of the shares in the Danish Securities Centre.

Danmarks Nationalbank considers binding, well-functioning cooperation concerning the Danish Securities Centre to be important. The established agreement helps to safeguard the balance created on the restructuring of the Danish Securities Centre as a limited liability company in 2000. Danmarks Nationalbank finds it important that the agreement enjoys the broad support of the other shareholders.

In connection with the merger with RealDanmark, in November 2000 Danske Bank undertook to Konkurrencestyrelsen (the Danish competition authority) to reduce its shareholding in the Danish Securities Centre to 15 per cent.

Purchase of shares in PBS

12 December 2002
Danmarks Nationalbank has negotiated the purchase of 17.7 per cent of the shares in parts of PBS, including BetalingsService, from Danske Bank. A provisional agreement on the purchase has now been concluded, and the final agreement is subject to ongoing negotiation. The purchase is conditional on a number of factors, including the approval of the competitionauthorities,and a final agreement is not expected to be reached until 2003.

In connection with the merger of Danske Bank and RealDanmark as of 1 January 2001 Danske Bank gave a number of undertakings to the Danish Competition Authority, among them that Danske Bank must reduce its shareholding in PBS to 25.9 per cent.

For Danmarks Nationalbank it is important to maintain the shared open infrastructure of payment systems. The purchase of shares from Danske Bank can help to ensure this, as Danske Bank has stated that the bank is prepared to continue to use the infrastructure. Danmarks Nationalbank also emphasises that there is full support from the other shareholders.

Appeal of Himmerlandsbanken ruling

10 October 2002
On 20 September 2002 the estate of Himmerlandsbanken lost the "bond case" at the Western Division of the Danish High Court. It was ruled that owners of supplementary capital subscribed to more than one and a half years prior to the winding-up of Himmerlandsbanken in August 1993 shall rank pari passu with other creditors, including ordinary depositors. The High Court has thus reached the same conclusion as the bankruptcy court in Hobro, although the ruling is based on other grounds.

The Guarantee Consortium comprising Danmarks Nationalbank and a number of other banks, which has provided a guarantee to the estate of Himmerlandsbanken, has decided to apply to the Appeals Permission Board to be granted leave to appeal the ruling to the Supreme Court.

Supplementary capital, together with the share capital and reserves of a bank, is included in the assessment of whether a bank meets the statutory capital-adequacy requirement. It is important that, as the law intends, the supplementary capital can be used to cover losses in any future bank crises and thus provide the greatest possible security for depositors.

The grounds on which the ruling of the High Court are based limit the possibilities of using the supplementary capital as intended, and Danmarks Nationalbank finds that this issue of principle should be decided upon by the Supreme Court.


					Publication overview - Contents - Top/Bottom - Previous/Next
				Press Releases
					Interest-rate changes 5 December 2002 on interest rate reduction The discount rate and the rate of interest on the banks' current accounts with the Nationalbank are lowered by 0.50 per cent to 2.75 per cent. The Nationalbank's lending rate and the rate of interest on certificates of deposit are lowered by 0.50 per cent to 2.95 per cent. The reduction will have effect as from 6 December 2002. The interest rate reduction is a consequence of the lowering by 0.50 per cent to 2.75 per cent in the European Central Bank's minimum bid rate on the main refinancing operations. Publications 18 March 2002: Report and Accounts for the Year 2001 At the meeting of the Board of Directors of Danmarks Nationalbank held today the Board of Governors presented the Report for 2001. The Report was noted. The Accounts for 2001 were submitted by the Board of Governors with the recommendation of the Committee of Directors that they be adopted. The recommendation of the approval of the Accounts was endorsed by the Board of Directors and the Royal Bank Commissioner, the Minister for Economic and Business Affairs, Mr. Bendt Bendtsen. The net profit for the year was DKK 4,794 million, against DKK 5,698 million in 2000. Net income from interest rose from DKK 4,929 million to DKK 5,479 million in 2001, while value adjustments fell from DKK 1,310 million to DKK 124 million, which is related primarily to negative exchange-rate adjustment. Total expenses were broadly unchanged at DKK 514 million. Other expenditure on ordinary operations was DKK 300 million, compared to DKK 20 million in 2000. This is due to an extraordinary payment to Danmarks Nationalbank's Pension Fund. In accordance with the established practice for allocation of profit: DKK 124 million – equivalent to value adjustments – was transferred to the Value Adjustment Reserve. DKK 25 million was transferred to Danmarks Nationalbank's Anniversary Foundation of 1968. DKK 1,376 million was transferred to the General Reserves. With addItion of the transfer of DKK 25 million to Danmarks Nationalbank's Anniversary Foundation of 1968, this corresponds to 30 per cent of the profit for the year before value adjustments. The remainder of DKK 3,269 million is payable to the central government. DKK 3,066 million was payable to the central government for 2000. The Report and Accounts of Danmarks Nationalbank are published today. The complete English translation is available on the Website on 18 March 2002 and in a printed version on 22 March 2002. Elections to the Board of Directors The 5‑year term of 3 of the 25 members of the Board of Directors ends on 31 March 2002. The Board of Directors has re‑elected Ms. Jette W. Knudsen, Director, Mr. Kjeld Larsen, Farmer and Ms. Kirsten Nielsen, President of the Danish Consumer Council, and elected Mr. Niels Fog,Director, to succeed Mr. B. Frank Nielsen, General Manager, who took his retirement. The Board of Directors re-elected Mr. Hans E. Zeuthen as Chairman and Ms. Helle Bechgaard as Deputy Chairman for the coming year. Elections to the Committee of Directors The Committee of Directors has 7 members. The Board of Directors, which elects 5 members, has re‑elected Mr. Søren Bjerre‑Nielsen, Ms. Pernille Blach Hansen, Ms. Kirsten Nissen, Mr. Jens Rohde, and Mr. Hans E. Zeuthen to the Committee of Directors. All elections are 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. At the following meeting of the new Committee of Directors the Committee of Directors re-elected Mr. Hans E. Zeuthen as Chairman and Mr. Michael Dithmer as Deputy Chairman. 10 April 2002: Danmarks Nationalbank publishes Working Paper series Danmarks Nationalbank has published the first two issues in a new series of Working Papers. The subjects covered by Danmarks Nationalbank's Working Papers will typically relate to macroeconomic, banking or financial issues, although other topics within Danmarks Nationalbank's area may also be included. The Working Papers describe research and development, often still ongoing. Danmarks Nationalbank's Working Paper series supplements the bank's other publications. The Working Papers are published as a contribution to the professional debate. The viewpoints and conclusions stated are the responsibility of the individual contributors, and do not necessarily reflect the views of Danmarks Nationalbank. The Working Papers are available in PDF format under Publications at www.nationalbanken.dk. A free electronic subscription is also available at this Web site. The subscriber receives an e‑mail notification whenever new Working Papers are published. Libraries will also be able to take out subscriptions for hard copy versions of the Working Papers by contacting Danmarks Nationalbank's Information Desk on tel. +45 3363 7000, or via e‑mail to info@nationalbanken.dk. 16 May 2002: Financial Stability 2002 Today Danmarks Nationalbank publishes a new annual publication on financial stability in Denmark, "Financial Stability 2002". The publication can be found at www.nationalbanken.dk under Publications. Similar analyses have previously been published in Danmarks Nationalbank's Monetary Reviews for the 2nd quarters of 2000 and 2001. An English version will be available on 29 May 2002. Like other national central banks, Danmarks Nationalbank performs analyses of financial stability. The approach is to consider risks and stability in the financial system, not the individual institutions in the financial sector. The latter is handled by the Danish Financial Supervisory Authority. In connection with the publication of Financial Stability 2002, Governor Bodil Nyboe Andersen states: "Our analyses show that overall the Danish banking institutions are robust, but there has been a slight decrease in the robustness compared to 2000. In general, the corporate sector and the households have been resilient to the economic slowdown in 2001. However, there seem to be indications of a tightening. Some sectors appear to be under pressure, e.g. the IT and telecom sector, and the banking institutions' losses and provisions increased in 2001." The report is in two parts. The first part starts with the trends in the financial sector, primarily the banking institutions' situation. Sensitivity analyses have been conducted to determine the robustness of banking institutions' earnings to changes in interest rates, stock prices and losses and provisions. This is followed by a chapter on the corporate sector and the households, since stability in the financial sector is dependent of the finances of the customers. Finally, the trends in the financial markets are reviewed. "Developments after the terrorist attacks on 11 September 2001 showed that generally the financial system was able to resist major shocks to the financial markets" Bodil Nyboe Andersen continues. "However, the events in the autumn of 2001 highlighted the need to operate with even very high increases in volatility in connection with the assessment of the stability of financial institutions." The second part of the report elaborates on current issues of relevance to financial stability. These issues are: pension companies and financial stability, the banks' capital adequacy and earnings, and payment system risks. The final chapter describes methods for analysing banks in relation to financial stability. Appointments 14 May 2002 The Committee of Directors of Danmarks Nationalbank have announced the appointment of Jens Dalsgaard, Assistant Head of Division, to Head of Division. Jens Dalsgaard has been head of Accounting's section of central bank customers, and he will in the future be deputy head of Statistics. Jens Dalsgaard aged 38 holds an MSc in economics, and has held positions at Danmarks Nationalbank since 1989, except for 3 years in the International Monetary Fund, IMF. 6 December 2002 The Board of Governors of Danmarks Nationalbank have announced the appointments of Peter Jochimsen, Head of Department, and Bjarne Skafte, Head of Department, to Assistant Director. As Chief Auditor Peter Jochimsen heads Audit at Danmarks Nationalbank. Peter Jochimsen is aged 50, is a State-Authorised Public Accountant, and has held positions at Danmarks Nationalbank since 1999. Bjarne Skafte is head of the Secretariat, which among other things is responsibleforDanmarksNationalbank'sexternalcommunication.Bjarne Skafte is aged 52, holds an MSc (Econ) and has held positions at Danmarks Nationalbank since 1991. Banknotes and coins 12 August 2002: "Kun ærlige penge tak!" – new folder on discoloured banknotes It must not be possible to use the proceeds from robberies. Therefore, Danmarks Nationalbank and the Danish Bankers Association are jointly publishing a folder to present rules for handling discoloured and suspicious‑looking banknotes. Banks, Post Danmark and cash-in-transit firms use anti-theft devices that, when released in the course of a bank robbery, discolour the banknotes. The anti-theft devices are released by explosion. The edges of banknotes lying close to the anti-theft devices can therefore appear burned or singed. Many bank robbers discard their booty immediately, but some of the discoloured banknotes still find their way to shops, etc. The folder "Kun ærlige penge tak!" presents examples of banknotes that have been damaged by anti-theft devices and describes how to react if presented with suspicious‑looking banknotes. Neither shops nor private individuals should accept discoloured banknotes. Any person who by mistake receives a discoloured banknote must hand it in to a bank. Danmarks Nationalbank will then exchange the banknote to "honest cash". In the event of gross negligence where it should have been discovered that a banknote is discoloured, burned or has been cleansed, the banknote will be withheld and the amount forfeited. The folder is distributed via a number of trade organisations and can also be obtained from banks or by contacting Danmarks Nationalbank. The guidelines for redemption of suspicious‑looking banknotes are also presented under Notes and coins on Danmarks Nationalbank's Web site www.nationalbanken.dk. 16 September 2002 on coin Set 2002 The Royal Mint's 2002 coin set is available at banks and from coin dealers from 14 October 2002, but many of these already accept orders now. Coins in coin sets are minted with two strokes, giving them a clearer embossment. The coins are packaged in special presentation folders for collectors. Ordinary coins are minted with only one stroke. As from the 2002 minting year there are no initials on Danish coins. The significance of the initials is not generally known, and the increasing number of initials disturbed the overall appearance of the coins. The 2002 coin set, which is minted in an edition of approximately 30,000, includes 20‑, 10‑, 5‑, 2‑ and 1‑krone coins, as well as 50‑ and 25‑øre coins. Recommended retail price: DKK 140.00. Any remaining coin sets will be sold from Danmarks Nationalbank, Banking Services, as from 14 October. The amount – DKK 140.00 plus postage of DKK 80.00, in total DKK 220.00 – can be paid to account no. 1005 0006360-7. Please state name and full address. 22 November 2002 on thematic coin with Aarhus City Hall Tower Danmarks Nationalbank will be issuing a new series of thematic coins with towers as the common theme. Aarhus City Hall Tower has been chosen for the first coin, which is issued to mark the 100th anniversary of the architect Arne Jacobsen, who also designed the Danmarks Nationalbank building. The Aarhus tower is significant and represents the modernist style characteristic of Arne Jacobsen's architecture. This coin is the first in a series of 7-10 coins to be issued over a number of years. The motivation for issuing a series of thematic coins is the wish to introduce new artists to the task of designing coins, so that Denmark will have a wide range of artists mastering this special art. The new motifs may also generate greater interest in coins among the general public. The tower motif on the first thematic coin is designed by the sculptor and graphic artist Lis Nogel. The motif on the obverse of the coin is the Queen in profile, facing right, as on the 10- and 20-krone coins in circulation. The coin will be issued as a 20-krone coin. 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 approximately one million coins, and can be used as an ordinary 20-krone coin. Since the edition is limited, most 20-krone coins in circulation will still bear the national coat of arms on the reverse. The coins can be purchased at face value from banks, and Danmarks Nationalbank as from 2 December. 26 November 2002 on new 100-krone banknote – enhanced security, same motifs On 27 November 2002 a new, more secure 100-krone banknote will be issued. Even though the 100-krone banknote is new, it is easy to recognise. There is still a portrait of Carl Nielsen on the face of the banknote and a basilisk on the reverse. The new features are a hologram and fluorescent colours which are visible under ultraviolet light. Together with the existing security features this will make Danish banknotes even harder to counterfeit. The number of counterfeit Danish banknotes is modest. The new security features will make the banknotes more difficult to counterfeit, and it will be easier to distinguish the authentic banknotes from the counterfeit notes. Old banknotes will remain legal tender The old banknotes will remain legal tender, but will gradually be withdrawn from circulation. The entire series will be upgraded The other banknotes in the series will be issued in upgraded versions at intervals of approximately six months. The entire series is expected to be upgraded with the new security features by the end of 2004. Information at your fingertips A folder about the new upgraded 100-krone banknote will be distributed to households from 27 November 2002. The folder will include a handy, wallet-sized card with four of the main security features. Information will also be published via free postcards and under Banknotes and coins at www.nationalbanken.dk. 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. Danmarks Nationalbank acquires shares in the danish securities centre (værdipapircentralen) 15 May 2002 Danmarks Nationalbank has entered into an agreement to acquire 11.22 per cent of the shares of the Danish Securities Centre (Værdipapircentralen) from Danske Bank. Danmarks Nationalbank hereafter holds 24.22 per cent of the shares in the Danish Securities Centre. Danmarks Nationalbank considers binding, well-functioning cooperation concerning the Danish Securities Centre to be important. The established agreement helps to safeguard the balance created on the restructuring of the Danish Securities Centre as a limited liability company in 2000. Danmarks Nationalbank finds it important that the agreement enjoys the broad support of the other shareholders. In connection with the merger with RealDanmark, in November 2000 Danske Bank undertook to Konkurrencestyrelsen (the Danish competition authority) to reduce its shareholding in the Danish Securities Centre to 15 per cent. Purchase of shares in PBS 12 December 2002 Danmarks Nationalbank has negotiated the purchase of 17.7 per cent of the shares in parts of PBS, including BetalingsService, from Danske Bank. A provisional agreement on the purchase has now been concluded, and the final agreement is subject to ongoing negotiation. The purchase is conditional on a number of factors, including the approval of the competitionauthorities,and a final agreement is not expected to be reached until 2003. In connection with the merger of Danske Bank and RealDanmark as of 1 January 2001 Danske Bank gave a number of undertakings to the Danish Competition Authority, among them that Danske Bank must reduce its shareholding in PBS to 25.9 per cent. For Danmarks Nationalbank it is important to maintain the shared open infrastructure of payment systems. The purchase of shares from Danske Bank can help to ensure this, as Danske Bank has stated that the bank is prepared to continue to use the infrastructure. Danmarks Nationalbank also emphasises that there is full support from the other shareholders. Appeal of Himmerlandsbanken ruling 10 October 2002 On 20 September 2002 the estate of Himmerlandsbanken lost the "bond case" at the Western Division of the Danish High Court. It was ruled that owners of supplementary capital subscribed to more than one and a half years prior to the winding-up of Himmerlandsbanken in August 1993 shall rank pari passu with other creditors, including ordinary depositors. The High Court has thus reached the same conclusion as the bankruptcy court in Hobro, although the ruling is based on other grounds. The Guarantee Consortium comprising Danmarks Nationalbank and a number of other banks, which has provided a guarantee to the estate of Himmerlandsbanken, has decided to apply to the Appeals Permission Board to be granted leave to appeal the ruling to the Supreme Court. Supplementary capital, together with the share capital and reserves of a bank, is included in the assessment of whether a bank meets the statutory capital-adequacy requirement. It is important that, as the law intends, the supplementary capital can be used to cover losses in any future bank crises and thus provide the greatest possible security for depositors. The grounds on which the ruling of the High Court are based limit the possibilities of using the supplementary capital as intended, and Danmarks Nationalbank finds that this issue of principle should be decided upon by the Supreme Court.

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