7. februar 2012, 12:33 – opdateret 7. februar 2012, 12:48

Danish banks have written off DKK130bn of debt since 2008, a review of Danish Financial Authority figures shows, in direct contrast to earnings of DKK147b during the ‘golden years’ between 2004-2007, before the crisis kicked in.

Leading bank Nordea reported a 135% increase in loan write offs in Q4 2011 alone, totalling nearly DKK2bn, and smaller banks are struggling even more. Jyske Bank MD Anders Dam called the situation ‘drastic’. “It’s an astronomic amount and the worst setback since World War 2. The economy’s going through a major transitional period, both here and throughout Europe. The Danish economy experienced negative growth in both 2008 and 2009 and we’re now four years into the crisis. Nobody knows where this will end,” he said.

There was mixed news for the economy at the start of the new year. New Statistics Denmark figures show 408 home foreclosures in January, a 13 per cent drop since December and a direct result, according to housing analysts, of falling interest rates over the past six months that have kept mortgage repayments low.

At the same time 511 businesses went bust, a 12 per cent increase on December 2011 and the highest month on month increase for a year.