Denmark's Amagerbanken joins 2nd govt aid scheme

 

Danish bank Amagerbanken said on Friday it had agreed on a 1.1 billion Danish crowns ($213 mln) loan under Denmark's second scheme to help banks through the financial crisis.

Denmark's first aid scheme, dubbed Bank Package I, provided state guarantees for deposits at all banks in the country. For Bank Package II, which involves hybrid core capital loans tobanks to shore up balance sheets, banks have to apply.

Amagerbanken, which earlier this month raised 962 million crowns in a share issue, applied for the second package earlier this year.

The new capital injection would bring Amagerbanken's tier 1 capital to 12.0 percent and its solvency ratio to 17.1 percent, Amagerbanken said in a statement.

The Nordic region's second-biggest bank, Danske Bank, has applied for 26 billion crowns under the second package. Most of the country's around 100 small banks haven't applied. ($1=5.171 Danish Crowns)