Frontpage News 2016 Politiken: the Dan...

Politiken: the Danish state earned DKK 18 billion in bank bailout packages

1 April 2016

Today, the Danish newspaper, Politiken, writes that the final figures and estimation of the price of bank bailout packages, which tightened the safety net under Danish banks in connection with the financial crisis, clearly show a large surplus, worth billions.

Overall, the packages have given the Danish Treasury a surplus of DKK 18 billion, according to the latest statement from the Ministry of Business and Growth published on Friday 1 April.

Ulrik Nødgaard, CEO of the Danish Bankers Association spoke to Politiken about the figures:
 
“The new figures show that the bank bailout packages have been a kind of insurance scheme, where banks have paid a premium to the state. That premium has turned out to be so big that it has ended up becoming a surplus for public finances – and we don’t have a problem with that. Extraordinary times called for extraordinary measures. We believe that this insurance-like arrangement has been a good solution that has solved and balanced out problems and given the Danish state an income.”
 
At the interest organisation for banks, there is also hope that the figures can dispel the myth that Danish tax payers paid for the bank bailout packages at the expense of welfare:
 
“We are mostly unhappy about the continually flourishing misunderstanding that bank bailout packages have almost been a gift for banks that have given less financial scope in the Danish economy for primary schools and hospitals. However, these figures document that this is not the case. On the contrary, there is now a small surplus for public financial scope, public services etc. So, we hope that these figures will help us put this discussion to bed,” Ulrik Nødgaard says.

From the Ministry for Business and Growth: the economic status of the bank bailout packages 2016 (available in Danish)

For more information, please contact Head of Media Relations at the Danish Bankers Association, Stine Luise Hansen, tel.: +45 3016 1009
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