Denmark nearly cracked during financial crisis, report concludes
The Danish state was on the verge of defaulting on its financial obligations in 2008, as the financial crisis took hold of the economy.
Had the economic turmoil required the state to make good on its pledge to back foreign-denominated loans through a secretive agreement known as ‘timely repayment’, it would have drained the country of its foreign reserves.
Danske Bank, for example, at one point in 2008 had lent out $20 billion in foreign denominated loans, or the equivalent of 110 billion kroner.
The central bank’s foreign reserves at that point amounted to 100 billion kroner.
This story was included in The Copenhagen Post's Morning Briefing for Thursday, September 19. If you would like to receive stories like these delivered to your inbox by 8am each weekday, sign up for the Morning Briefing or one of our other newsletters today.