The Danish Government and the banking sector have signed an agreement about the
establishment of a guarantee scheme, which will secure all deposits and
unsecured claims against losses in Danish financial institutions. Through its
membership of Det Private Beredskab (the Danish banking sector's contingency
association). Jyske Bank is included in the scheme, which will run for two years
as from 6 October 2008.
Guarantee commission and loss guarantee from Det Private Beredskab will amount
to at least DKK 15bn and will not exceed DKK 35bn over the two-year period.
Jyske Bank's direct payment to the guarantee scheme is expected to amount to
DKK 400m-DKK 450m per year.
The agreement will affect the liquidity situation in Denmark. It is uncertain
how the scheme will affect the funding costs and the business volume, but Jyske
Bank's prices of deposits, loans and credits will on an ongoing basis be
adjusted to reflect the special market conditions.
