Denmark has stolen children from their foreigner parents

Friday, September 30, 2011

Denmark to Provide Banks $72.6B Lifeline

Denmark’s central bank said it will provide as much as 400 billion kroner ($72.6 billion) as part of an extended collateral program to provide emergency liquidity to the country’s banks.
Lenders will also be able to borrow liquidity for six months, alongside the central bank’s existing seven-day facility, at a rate that tracks the benchmark lending rate, currently 1.55 percent, the bank said in a statement...

The country’s lenders face a deepening crisis that threatens to stall a recovery in Scandinavia’s worst-performing economy. Two Danish bank failures this year triggered senior creditor losses, leaving international funding markets closed to all but the largest banks. Lawmaker efforts to spur a wave of consolidation and help banks sidestep Denmark’s bail-in rules have so far failed.

Denmark’s liquidity lifeline mirrors programs in the euro area, where the European Central Bank has been pumping cash into the region’s money markets, including dollar liquidity, to support lenders.

The central bank is boosting its liquidity support to help lenders stay afloat as they struggle to refinance 158 billion kroner in debt backed by a state guarantee that expires over the next two years. The central bank’s pricing means “people will dare to use it,” Hovard said. “ There will be no stigmatization from using the facility. It’s so cheap that even the strong banks will consider using it.”
Still, the head of the country’s bank resolution unit, the Financial Stability Company, said the emergency facility may not be enough to prevent further insolvencies.

More at Bloomberg

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