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The temporary expansion of the collateral basis at Danmarks Nationalbank to include quoted shares, quoted investment funds shares, quoted junior covered bonds, loan bills and unquoted shares has been extended until 26 February 2011.
The securities comprised by the temporary expansion of the collateral basis at Danmarks Nationalbank are included in the "List of temporarily eligible securities" on the righthand menu.
Banks and mortgage-credit institutes may not use securities issued by themselves or close links, i.e. companies within the same financial group, as collateral. The definition of close links in Council Directive 2006/48 applies.
Danmarks Nationalbank has temporarily expanded the collateral basis for borrowing in Danish kroner by banks and mortgage-credit institutes from Danmarks Nationalbank (monetary-policy loans, loans for decentralised banknote holdings and intraday credit).
Until 30 December 2013, collateral may also be pledged by way of state-guaranteed unsecured debt issued by banks and mortgage-credit institutes, state-guaranteed junior covered bonds and SPV bonds issued on the basis of loans with individual state guarantee to banks and mortgage-credit institutes. The SPV bonds must fulfil certain terms and conditions set by Danmarks Nationalbank, cf. "Terms and conditions for SPV bonds".
In addition, until 26 February 2011 the collateral basis has also been extended to include quoted shares, quoted investment funds shares, quoted junior covered bonds without a state guarantee, loan bills and unquoted shares. The loan bills must comply with standard terms established by Danmarks Nationalbank, cf. "Terms and conditions for loan bills".
Several securities mentioned above are only eligible upon request and the approval of Danmarks Nationalbank. Moreover, all securities must be denominated in Danish kroner or euro, and shall, with the exemption of SPV bonds, be issued by funds or corporations in the Kingdom of Denmark. Quoted securities must be traded on OMX NASDAQ Copenhagen, and all securities, except unquoted shares, must be registered with VP Securities.
Junior covered bonds, which are traded on OMX NASDAQ Copenhagen and complies with rating requirements set by Danmarks Nationalbank, are eligible collateral for borrowing in Danish kroner form Danmarks Nationalbank according to the usual terms and conditions for pledging of collateral at Danmarks Nationalbank, cf. "Pledging of collateral".
The securities comprised by the temporary expansion of the collateral basis at Danmarks Nationalbank are included in the "List of temporarily eligible securities".
The rules for pledging the securities mentioned above, including the calculation of the collateral value, are described in "Addendum to Terms and Conditions of Collateral for Credit Facilities".
Please contact Kristian Kjeldsen, Head of Division, tel. +45 33636151 |
