DENMARK - ATP, the largest pension scheme in Denmark, is lending billions of Danish kroner to Danish bank- described as deposits because of a government guarantee they carry - in a bid to help shore them up during the financial crisis.

"Our deposits in the Danish banks are 100% guaranteed. The National Bank has explicitly established that and that is why we decided to increase our deposits in the banks," said Lars Rohde, director at ATP.

ATP is the largest pension scheme in Denmark with more than DKK300bn (€40.21bn) and is by far the most influential investor in the country, and has now agreed a deal which effectively sees them loan DKK30bn, but which are guaranteed to be repaid by the government should anything go wrong.

The government and the Financial Council involved ATP in the negotiations last weekend about the financial aid package announced by he government.

However, ATP decided not to participate in the package at that stage as they did not wish to risk their pension savers' money.

"ATP does not offer relief. Our deposits will have to be guaranteed, otherwise we will not participate," said Lars Rohde.

The government made changes in their aid package today which ATP is understood to consider impressive and which it is now able to support.

The National Bank announced all deposits in Danish financial institutions are guaranteed - and by doing so ATP has received a guarantee the pension assets will not be jeopardised.

If you have any comments you would like to add to this or any other story, contact Julie Henderson on + 44 (0)20 7261 4602 or email julie.henderson@ipe.com

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