Denmark has a sound and solid banking sector today. However, the current situation in the international financial markets is unstable. The state guarantee will ensure continued confidence in Danish banks in international capital markets.

With the agreement in place, the Danish financial sector pays DKK 10bn, which will only be released if a bank is in a situation where it cannot solve the problems itself. In addition, the sector will pay a guarantee commission of DKK 7.5bn annually for the duration of the agreement. The sector undertakes to provide additional funds of up to DKK 10bn if necessary. 

In the opinion of the Danish Bankers Association, it is an expensive solution – but it is the most responsible one given the current situation with a continuously worsening liquidity environment both internationally and nationally.

- With this solution the government has demonstrated timely action. There is no doubt that action is needed now to get the blood circulation of the money market going. The past few weeks and not least the past few days have shown us that the financial crisis internationally and nationally has gained momentum, says Peter Schütze, Chairman of the Danish Bankers Association.

- The government and the opposition have acted with determination and timeliness in this matter. They have understood the seriousness of the situation, continuously followed the rapidly escalating market developments and reacted when it was necessary. 

- At the same time, it is impressive that the agreement is backed by a broad majority of the parties of the Danish parliament, says Peter Schütze.