Other ADB Members
Sum of Measures 1—5 (Total Package)
|Measure||Amount (Local)||Amount (USD)||Details||Update||Source|
|01 - Liquidity Support info_outline||DKK2,211,659,372||USD327,433,628|
|01A - Short-term lending info_outline||DKK2,211,659,372||USD327,433,628||
May 5, EUR296 million in investment or working capital loans to startups to be provided only until the end of the year.
|01B - Support policies for short-term lending info_outline||
(i) March 20, The (Danmarks Nationalbank) DN announced the launch of an ‘extraordinary lending facility’ which will make full-allotment, 1-week, collateralized loans available to banks at -0.5 % interest rate. Starting March 27, this facility will also include 3-month variable rate loans; (ii) March 24, The DN announced the auction of USD liquidity; (iii) the Danish Financial Stability Authority (DFSA) also announced a case by case relaxation of regulation on the LCR requirement.
|01C - Forex operations info_outline||
Denmark’s krone is pegged to the Euro. The fixed exchange rate policy has served Denmark well. The DN has stated its objective of preserving the peg.
|02 - Credit creation info_outline||DKK295,400,000,000||USD43,733,630,525|
|02A - Financial sector lending/funding info_outline|
|02B - Support policies for long-term lending info_outline||DKK200,000,000,000||USD29,609,770,159||
No amount/estimate: (i) The DN increased the policy rate by 15bps to -0.6 %; (ii) March 12, DKK200 billion in additional liquidity after Danish authorities reduced the countercyclical capital buffer from 1% to 0% and cancel the planned increases meant to take effect later; (ii) March 30, A joint statement by the government and the financial sector commits banks and mortgage banks to support households with additional loans and payment holidays. Banks and insurance companies are urged by the DFSA not to pay out dividends or buy back shares; (iii) the DN also increased the interest rate on the previously announced 1-week loans to -0.35 %.
|02C - Loan guarantees||DKK95,400,000,000||USD14,123,860,366||
(i) March 17, DKK1.20 billion credit guarantee for Scandinavian Airlines. Total support credit guarantee to the airlines amounting to SEK3.5 billion equally split between the Danish and Swedish governments; (ii) March 19, DKK35.7 billion loan guarantees scheme for large firms; (iii) DKK25 billion loan guarantee scheme for SMEs; (iv) DKK1.25 liquidity guarantee in new loans to SMEs with export activities; (v) DKK2.25 billion government guarantee for the Travel Guarantee Fund, to be repaid by the travel industry in the coming years; (vi) April 18, DKK30 billion government guarantee (to insurance companies) for companies' trade and export activities; (vii) No amount/estimate: May 20, For startups, loan guarantees by the Ministry of Finance on 70 % of new corporate loans that are issued to cover losses directly relating to COVID-19.
|03 - Direct long-term lending info_outline||DKK1,500,000,000||USD222,073,276|
|03A - Long-term lending info_outline||DKK1,500,000,000||USD222,073,276||
March 19, DKK1.5 billion expected increase in the utilization of Danish students’ Loan Scheme that was temporarily extended.
|03B - Forbearance|
|04 - Equity support info_outline||DKK13,500,000,000||USD1,998,659,486||
(i) April 18, DKK3.5 billion in loans and equity provided to entrepreneurs and venture firms. The state investment fund (Vaekstfonden) will provide risky capital to start-ups and venture firm, facing difficulties in financing as private investors withdraw from the market. Available in 2020 only; (ii) June 15, DKK10 billion from a new government-backed fund to act as an investor of last resort with the possibility of recapitalizing large and important firms at risk of bankruptcy. [update]
|05 - Government support to income/revenue||DKK266,837,000,000||USD39,504,911,200|
|05A - Health||DKK950,000,000||USD140,646,408||
(i) March 30, DKK150 million in aubsidies provided to health research specifically related to COVID-19; (ii) Recently an additional DKK 0.8 billion has been allocated to hire more social and health workers nationwide.
|05B - Non-health||DKK265,887,000,000||USD39,364,264,792||
(i) March 10, DKK32.5 billion liquidity effect of deferral of monthly VAT payments for large firms; (ii) March 12, No amount/estimate: Short-time Work Scheme made more flexible; (iii) DKK10 million for upskilling of dismissed employees; (iv) DKK1.7 billion sickness benefit reimbursement available from 27 February to 1 January 2021; (v) March 26, DKK1.1 billion liquidity effect of deferral of property taxes; (vi) DKK2.5 billion frontloading of investments in e.g. energy renovation and similar initiatives in municipalities; (vii) March 26, DKK6.5 billion frontloading of payment by local governments to firms; (viii) March, DKK74 billion liquidity effect of deferral of income tax payment and labor market contributions; (ix) April 1, DKK300 million compensation scheme to event organizer companies extended; (x) April 7, DKK1.2 billion for a range of minor support schemes established to support agents and businesses with cultural activities, sports and private education; (xi) April 18, DKK6 billion for the Job Retention Scheme available from 9 March to 8 July 2020. Take-up rate around 5% of the labour force (150,000 employees) on 19 April; (xii) April 18, DKK277 million for increased access to unemployment and sickness benefits. As of June 5, the wage compensation has been extended to August 29; (xiii) April 18, DKK65.3 billion compensation scheme for companies’ fixed costs available for the period 9 March to 8 July; (xiv) April 18, DKK14.3 billion compensation scheme for self-employed; (xv) April 18, DKK350 million for Innovation Subsidy Scheme to support new projects; (xvi) April, DKK35.4 billion VAT payments already made for second half and last quarter of 2019 are made available as interest free loans; (xvii) April, DKK5 billion liquidity impact of deferral of provisional taxes for self-employed; (xviii) May 14, No amount/estimate: Increased holiday and time-off benefits for students, apprentices, and trainees; (xix) May 20, Established a pool of DKK20 million to sponsor collegiate, cultural, and sporting activities for vulnerable and elderly citizens during the coronavirus crisis. The pool is managed by the Ministry of Culture's Palace and Culture Board; (xx) May 26, No amount/estimate: Relaxed requirements to receive pension and unemployment benefits; (xxi) May 26, No amount/estimate: Frozen holiday funds must be paid out by employers by September 1, 2020; (xxii) May 28, DKK18 billion from further VAT deferrals for medium-sized firms; (xxiii) No amount/estimate: June 4, Banned predatory mortgage loan providers, and created rules to facilitate settlement of those loans; (xxiv) No amount/estimate: June 15, Announced a one-time grant of DKK1,000 to be paid to beneficiaries who were fully or partially publicly supported by a public income transfer in the month of April [update]; (xxv) No amount/estimate: June 15, Gives six months' grief leave to all parents who lose a child under the age of 18 [update]; (xxvi) No amount/estimate: Extended deadlines for Danish municipalities and regions to prepay deliveries worth DKK1 million (minus value added taxes) or less [update]; (xxvii) DKK700 million summer fiscal package for the tourism, transportation, athletics, and culture sectors [update]; (xxviii) No amount/estimate: Extend the suspension of the 225-hour rule for cash beneficiaries until September 8, 2020 [update]; (xxix) DKK730 million for increased unemployment benefits - unemployed people over 30 years will be entitled to take a vocational education of 110% unemployment benefit. [update]
|06 - Budget reallocation info_outline|
|07 - Central bank financing government|
|07A - Direct lending & reserve drawdown|
|07B - Secondary purchase: government securities|
|08 - International Assistance Received||DKK349,182,041,750||USD51,696,000,000|
|08A - Swaps info_outline||DKK349,182,041,750||USD51,696,000,000||
The standing swap line with ECB was activated and its size was doubled to EUR24 billion. It will remain in place as long as needed, no information available on usage. In addition, the DN reached an agreement with the Federal Reserve to establish a USD30 billion swap line that will stand for at least 6 months. Amounts outstanding under the Federal Reserve swap line: USD1.765 billion as of June 25. Peak amount oustanding: USD5.29 billion as of April 30.
|08B - International loans/grants|
|08B1 - Asian Development Bank|
|08B2 - Other|
|09 - International Assistance Provided||DKK48,941,832||USD7,245,782|
|09A - Swaps info_outline|
|09B - International loans/grants||DKK48,941,832||USD7,245,782||
As of May 20, contributed USD7,245,782 to the UN COVID-19 Response and Recovery Fund.
|10 - No breakdown|
|11 - Other Economic Measures|
|12 - Non-Economic Measures||
(i) People returning from abroad are strongly encouraged to self-quarantine for two weeks. Borders have been closed and entry are only allowed for citizens and others with a critical reason to enter (e.g. work or visit sick family member). EU border restrictions apply as well. Borders remain fully open to transport of goods and capital flows. Air traffic is de facto shut down. All schools, childcare and education facilities were closed, but have gradually begun reopening as of May 20. Teaching continues through online distance learning platforms. The government has banned gatherings of more than 10 people (inside as well as outside), except in work places. Only food stores, pharmacies and stores allowing sufficient physical distance are allowed to remain open. All restaurants, bars and cultural premises as well personal services not allowing sufficient physical distance (e.g. hairdressers) are required to close; (ii) The authorities announced careful and gradual lift of some containment measures such as the opening of daycares, kindergartens and schools (up to 5th grade) by April 15 while others remain in place till May (e.g. no events with more than 10 people, closure of borders) and August (e.g. large gatherings). The gradual opening of the economy was extended to include additional health care sectors and liberal professions . The authorities adjusted the criteria for COVID-19 testing to enable a comprehensive testing of the population as part of the reopening strategy.