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04 February 2009

Commission approves support package for Danish financial institutions


The Commission approved a package of measures aimed at supporting the financing of the real economy in Denmark. The new measures include a recapitalisation scheme and amendments to the existing guarantee scheme for banks.

The Commission approved a package of measures aimed at supporting the financing of the real economy in Denmark. The new measures include a recapitalisation scheme and amendments to the existing guarantee scheme for banks, which was approved by the Commission on 10 October 2008.

 

The Danish recapitalisation scheme enables the State to subscribe hybrid capital qualifying as tier 1 capital. Capital endowment will be up to a level of 12% of tier 1 capital. The total budget for the measure will be around €13.5 billion.

 

The Commission’s assessment concluded that the adequacy of the recapitalisation would be ensured by a remuneration that varies according to the risk profile of the beneficiary and is comprised in the range of approximately 9 to 12%.

 

Press release

 



© European Commission


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