Danish bankers are learning the hard way it pays to have a seat at the table.
Representatives from Denmark’s mortgage industry are meeting with the government today in the hope of easing repayment terms on interest-only loans that threaten to unleash a wave of foreclosures this year.
A growth accord reached late yesterday by Danish lawmakers won’t be enough to end the nation’s economic slump, according to the chief economist at its largest bank.
Denmark has repaid 53 percent more than it predicted from a change to an early retirement program, funds that so far have failed to spur consumer spending.
Denmark’s government says plans to stimulate the economy, which has yet to surface from the fallout of a housing bubble that burst more than four years ago, won’t put its top credit rating at risk.
Danish apartment prices are rising at a pace that may be unsustainable, according to Danske Bank A/S, the nation’s biggest lender.
Denmark’s weekend budget accord is provoking a backlash among business groups and economists who warn the measures agreed on risk depriving the flagging economy of future growth drivers.
A recovery in the euro area has done little to persuade Danes to reconsider the single currency.
"Though there's every chance the Danish government can achieve its growth goals, the risk that the economy will be weaker than forecast has definitely increased over the past months."
- Steen Bocian on Aug 25, 2014