• What kind of Guarantee Scheme under Stage 1?
  • An unconditional state guarantee on liabilities in Denmark (incl. deposits, CPs, interbank liabilities and unsecured claims) that ensures timely payment of the covered claims. Subordinated or hybrid debt is not covered. The Guarantee Scheme runs until 30 September 2010
• Who can participate?
  • All financial institutions in Denmark with a Danish banking license and a membership of The Danish Contingency Committee
    .
• At what cost?
  • Danish banks cover losses up to EUR 4.7 bn / Maximum EUR 201m for FIH.
  • The Danish government will cover any loss in excess of DKK 35 bn
  • Banks participating are paying pro-rata based on their ‘necessary base capital’
  • Triple A ratings (i.e. same ratings as the Kingdom of Denmark) for senior unsecured notes maturing by 30 September 2010
• In relation to FIH:
  • FIH has along with 134 other Danish banks joined the Guarantee Scheme.
  • In year 2008 FIH incurred an expense of EUR 16.9m due to participating in stage 1 of the Danish Financial Stability Pact

* The Danish Ministry of Economic and Business Affairs has, as part of the Scheme, established a public limited company, Financial Stability, which is wholly owned by and enjoys an unconditional guarantee from the Kingdom of Denmark. The objective of the Winding-Up Company is to ensure that unsubordinated, unsecured creditors (as defined in the FS Act) in participating Danish banks will be covered in full.