Please note:

Both banks said they don’t have any need to fund themselves through the ECB, but made use of the loans because they were given at favorable terms–with a 1% interest rate–against securities that the banks wouldn’t otherwise be able to use.


It should be noted that the Danish Central Bank specifically exempts own issues from the securities a bank can use as collateral when giving loans to banks.

This means that the Danish Central Bank will not accept variable interest mortgage bonds issued by Danske Banks mortgage bank Realkredit Danmark.

ECB is probably not so squeamish.

Other wise the credit facility in the ECB and Danish Central Bank is similar – only the interest rate in the Danish Central Bank is .7% and in ECB is 1.0%

As the cat is out of the bag: The reason of keeping it confidential must be regarded as a smoke screen.

The Danish Central Bank obviously offer a better interest rate.

How the Danish Central Bank will react to this method of speculating on a revaluation of the Danish krone remains to be seen.