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Higher mortgage bills may be on the way to Danish borrowers

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August 15th, 2017


This article is more than 7 years old.

The cost of securing banks against future crises remains uncertain

Your dream home might end up costing more if building society costs rise (photo: picserver/Nick Youngson)

The new capital requirements for financial institutions that came about as a result of the Basel Accords may end up costing Danish property-owners more money.

The measures were put into place in the wake of the financial crisis of 2008, imposing stricter rules on financial institutions and bolstering reserves by increasing the ratio of capital to lending.

Pass the parcel
An expert group from the Ministry of Industry, Business and Financial Affairs has estimated that the amount demanded from the Danish financial sector could be increased from 64 to 92 billion kroner – an increase of between 27 and 39 percent, DR Nyheder reports.

The amount has not yet been finally agreed and negotiations are continuing. However, should it increase, banks – and building societies in particular – will be passing the added cost on to their customers.

Last year, Danish property owners paid around 15 billion kroner in administration fees on their loans.


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A survey carried out by Megafon for TV2 has found that 71 percent of parents have handed over children to daycare in spite of them being sick.

Moreover, 21 percent of those surveyed admitted to medicating their kids with paracetamol, such as Panodil, before sending them to school.

The FOLA parents’ organisation is shocked by the findings.

“I think it is absolutely crazy. It simply cannot be that a child goes to school sick and plays with lots of other children. Then we are faced with the fact that they will infect the whole institution,” said FOLA chair Signe Nielsen.

Pill pushers
At the Børnehuset daycare institution in Silkeborg a meeting was called where parents were implored not to bring their sick children to school.

At Børnehuset there are fears that parents prefer to pack their kids off with a pill without informing teachers.

“We occasionally have children who that they have had a pill for breakfast,” said headteacher Susanne Bødker. “You might think that it is a Panodil more than a vitamin pill, if it is a child who has just been sick, for example.”

Parents sick and tired
Parents, when confronted, often cite pressure at work as a reason for not being able to stay at home with their children.

Many declare that they simply cannot take another day off, as they are afraid of being fired.

Allan Randrup Thomsen, a professor of virology at KU, has heavily criticised the parents’ actions, describing the current situation as a “vicious circle”.

“It promotes the spread of viruses, and it adds momentum to a cycle where parents are pressured by high levels of sick-leave. If they then choose to send the children to daycare while they are still recovering, they keep the epidemic going in daycares, and this in turn puts a greater burden on the parents.”