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||
5 May 2020, 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) No amount/estimate: 20 March 2020, 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 27 March 2020, this facility will also include 3-month variable rate loans; (ii) No amount/estimate: 24 March 2020, The DN announced the auction of USD liquidity; (iii) No amount/estimate: 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|
|02B1 - Interest rate reductions||
No amount/estimate: The DN increased the policy rate by 15bps to -0.6%.
|02B2 - Other policies to support long-term lending||DKK200,000,000,000||USD29,609,770,159||
(i) 12 March 2020, 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) No amount/estimate: 30 March 2020, 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) No amount/estimate: 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) 17 March 2020, 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) 19 March 2020, 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) 18 April 2020, DKK30 billion government guarantee (to insurance companies) for companies' trade and export activities; (vii) No amount/estimate: 20 May 2020, 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||
19 March 2020, DKK1.5 billion expected increase in the utilization of Danish students’ Loan Scheme that was temporarily extended.
|03B - Forbearance||
(xxiii) No amount/estimate: June 4, Banned predatory mortgage loan providers, and created rules to facilitate settlement of those loans;
|04 - Equity support info_outline||DKK18,777,889,398||USD2,780,044,946||
(i) 18 April 2020, 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) 15 June 2020, 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; (iii) Together with Sweden, planned recapitalization of SAS (a Dutch airline) through an equity injection. On 17 August 2020, the European Commission (EC) approved this measure. Denmark is expected to provide approximately EUR583 million of the recapitalization funds; (iv) 20 November 2020, EUR1.34 billion approved by the EC as capital support to large companies affected by coronavirus outbreak.
|05 - Health and income support||DKK283,955,800,000||USD42,039,329,867|
|05A - Health support||DKK5,068,800,000||USD750,430,015||
(i) 30 March 2020, DKK150 million in subsidies provided to health research specifically related to COVID-19; (ii) An additional DKK0.8 billion was allocated to hire more social and health workers nationwide; (iii) 1 July 2020, DKK1.4 billion disbursed to municipalities for protective equipment and extra cleaning; (iv) 11 November 2020, DKK18.8 million allocated for the testing of a potential COVID-19 vaccine developed by researchers; (v) 11 December 2020, DKK2.7 billion extra in COVID compensation to municipalities and regions for extra expenses for protective equipment and the test effort. [update]
|05B - Income support||DKK278,887,000,000||USD41,288,899,852|
|05B1 - Tax and contribution deferrals and policy changes||DKK166,000,000,000||USD24,576,109,232||
(i) 10 March 2020, DKK32.5 billion liquidity effect of deferral of monthly VAT payments for large firms; (ii) 26 March 2020, DKK1.1 billion liquidity effect of deferral of property taxes; (iii) March, DKK74 billion liquidity effect of deferral of income tax payment and labor market contributions; (iv) April, DKK35.4 billion VAT payments already made for second half and last quarter of 2019 are made available as interest free loans; (v) April, DKK5 billion liquidity impact of deferral of provisional taxes for self-employed; (vi) May 28, DKK18 billion from further VAT deferrals for medium-sized firms.
|05B2 - Tax and contribution rates reduction||DKK750,000,000||USD111,036,638||
6 December 2020, The Finance Act agreement for 2021 includes support for the experience economy, including restaurants and hotels, etc. of DKK750 million. This applies to e.g. tax exemption of employer-paid gift cards as well as other civil society efforts. [update]
|05B3 - Wage support and subsidies to individuals and households||DKK23,717,000,000||USD3,511,274,594||
(i) 12 March 2020, No amount/estimate: Short-time Work Scheme made more flexible; (ii) DKK10 million for upskilling of dismissed employees; (iii) DKK1.7 billion sickness benefit reimbursement available from 27 February 2020 to 1 January 2021; (iii) 18 April 2020, 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; (iv) 18 April 2020, DKK277 million for increased access to unemployment and sickness benefits. As of 5 June 2020, the wage compensation has been extended to 29 August 2020; (v) 18 April 2020, DKK14.3 billion compensation scheme for self-employed; (vi) No amount/estimate: 14 May 2020, Increased holiday and time-off benefits for students, apprentices, and trainees; (vii) No amount/estimate: 26 May 2020, Relaxed requirements to receive pension and unemployment benefits; (viii) No amount/estimate: 26 May 2020, Frozen holiday funds must be paid out by employers by 1 September 2020; (ix) No amount/estimate: 15 June 2020, 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; (x) No amount/estimate: 15 June 2020, Gives six months' grief leave to all parents who lose a child under the age of 18; (xi) No amount/estimate: Extended the suspension of the 225-hour rule for cash beneficiaries until 8 September 2020; (xii) DKK730 million for increased unemployment benefits - unemployed people over 30 years will be entitled to take a vocational education of 110% unemployment benefit; (xiii) 13 July 2020, The European Commission has approved two Danish schemes to support self-employed workers and freelancers affected by the coronavirus outbreak: (a) DKK500 million for self-employed workers active in all sectors of the economy except the financial sector; (b) DKK200 million for self-employed workers and freelancers whose yearly income is strongly dependent on delivering goods or services linked to large events, which were initially planned for the summer of this year but had to be cancelled or postponed due to the emergency measures put in place by the Danish government to limit the spread of the coronavirus.
|05B4 - Subsidies to business||DKK75,700,000,000||USD11,207,298,005||
(i) 26 March 2020, DKK6.5 billion frontloading of payment by local governments to firms; (ii) 1 April 2020, DKK300 million compensation scheme to event organizer companies extended; (iii) 7 April 2020, DKK1.2 billion for a range of minor support schemes established to support agents and businesses with cultural activities, sports and private education. This amount has been increased to DKK1.9 billion; (iv) 18 April 2020, DKK65.3 billion compensation scheme for companies’ fixed costs available for the period 9 March to 8 July; (v) 18 April 2020, DKK350 million for Innovation and Sustainable Growth in Business Scheme to support new projects. As of 5 August 2020, the European Commission has approved the extension of this program to help affected companies restructure and consolidate themselves. The modification will also improve cooperation between large companies and SMEs in green transition; (vi) 14 July 2020, DKK1.1 billion to compensate fixed costs of companies whose activities are still subject to the restrictive measures implemented by the Danish Government to limit the spread of the coronavirus. As of 7 August 2020, this measure has been extended to 29 August 2020 for companies which are still not allowed to open under the current rules; (vii) 10 September 2020, DKK250 million economic recovery package that will be used to strengthen the companies in the Nordic countries' opportunities in the green transition, remove burdens for companies, and get particularly hard-hit businesses such as. tourism back on track.
|05B5 - Indirect income support||DKK10,720,000,000||USD1,587,083,681||
(i) DKK2.5 billion frontloading of investments in e.g. energy renovation and similar initiatives in municipalities; (ii) 20 May 2020, 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; (iii) No amount/estimate: Extended deadlines for Danish municipalities and regions to prepay deliveries worth DKK1 million (minus value added taxes) or less; (iv) DKK700 million summer fiscal package for the tourism, transportation, athletics, and culture sectors; (v) 1 July 2020, DKK7.5 billion disbursed to municipalities for transfer costs, employment grants, and other non-health expenditures. The other 1.4 billion of the 8.9 billion total package can be found in (iii) of Measure 5A.
|05B6 - No breakdown (income support)||DKK2,000,000,000||USD296,097,702||
(i) 6 December 2020, DKK2 billion for restructuring efforts. The money will go to the conversion of SMEs in hard-hit areas, upskilling and targeted training efforts, the establishment of regional growth teams and unemployment benefits [update]; (ii) No amount/estimate: 11 December 2020, The general aid packages for Danish business and cultural life are reopened to the whole country and not only to the municipalities where there are stricter restrictions right now. This means that the compensation scheme for fixed costs and the compensation scheme for the self-employed, etc. will be reopened. [update]
|05C - No breakdown (health and income support)|
|06 - Budget reallocation info_outline|
|07 - Central bank financing government|
|07A - Direct lending & reserve drawdown|
|07B - Secondary purchase: government securities|
|08 - International Assistance Received||DKK349,630,351,082||USD51,762,371,681|
|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: USD300 million as of 6 August 2020. Peak amount oustanding: USD5.29 billion as of 30 April 2020.
|08B - International loans/grants||DKK448,309,332||USD66,371,681|
|08B1 - Asian Development Bank|
|08B2 - Other||DKK448,309,332||USD66,371,681||
EUR60 million over a 10-year loan agreement between the Nordic Investment Bank (NIB) and the Danish Ringkjøbing Landbobank (RLB) for onlending to environmental projects and to SMEs in Denmark. This initiative is part of NIB's special support for sustainable business during the COVID-19 pandemic.
|09 - International Assistance Provided||DKK5,048,941,832||USD747,490,036|
|09A - Swaps info_outline|
|09B - International loans/grants||DKK5,048,941,832||USD747,490,036||
(i) As of 20 May 2020, contributed USD7,245,782 to the UN COVID-19 Response and Recovery Fund; (ii) 1 July 2020, contributed DKK5 billion to the European Guarantee Fund to help especially small and medium-sized businesses affected by the crisis.
|10 - No breakdown|
|11 - Other Economic Measures||
(i) 11 August 2020, set up a Forum for restarting Danish exports, and eight Restart Teams from various industries to contribute their input; (ii) 21 August 2020, Gave entrepreneurs a better opportunity to re-register entrepreneurial companies as private limited companies. Also extended the deadline for re-registration to 15 October 2021.
|12 - Non-Economic Measures|
|12A - Measures affecting travel and transport (local and international)||
(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; (ii) 6 January 2021, Denmark is barring entry to residents of the UK and South Africa until 17 January 2021 due to fears over the spread of a new strain of the coronavirus there. [update]
|12B - Measures affecting business and workplace||
(i) All schools, childcare and education facilities were closed, but have gradually begun reopening as of 20 May 2020. 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 15 April 2020 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. As of 8 October 2020, all current restrictions will be in place until 31 October; (iii) 5 January 2021, The COVID-19 risk level used by authorities is to be increased from level 4 to level 5. This level indicates “widespread infection in society”, as well as “a risk that treatment capacity at hospitals will be exceeded”. Along with this, the limit on assembly in public will be reduced from 10 to 5 people. [update]
|12C - Others||
(i) The authorities adjusted the criteria for COVID-19 testing to enable a comprehensive testing of the population as part of the reopening strategy; (ii) As of 26 October 2020, Denmark has reduced the maximum number of people who are allowed to gather in public from 50 to 10, subject to exemptions for essential activities, etc. This measure will be initially effective for 4 weeks.