Contents

Highlights of Government Debt Policy

MAIN PRINCIPLES

1.       MAIN PRINCIPLES OF GOVERNMENT DEBT MANAGEMENT
1.1     Government Debt Management Portfolios
1.2     Government Debt Management Objectives
1.3     Responsibilities of Government Debt Management
1.4     Government Debt Management Strategy
1.5     Domestic and Foreign Funding Rules
1.6     Structure of Government Debt Management
1.7     Information on the Central-Government Debt

REPORT SECTION

2.       GOVERNMENT DEBT POLICY TRENDS IN 2009
2.1     Continued Financial Turmoil in Early 2009
2.2     Improvement of Financial Markets from the 2nd Quarter
2.3     Upward Adjustment of Borrowing Requirements

3.       BORROWING IN 2009
3.1     Development in Danish Government Yields
3.2     Yield Spreads to Germany
3.3     Domestic Borrowing
3.4     Buy-Backs
3.5     Foreign Borrowing
3.6     The Central Government's Account
3.7     Ownership Distribution of Domestic Government Securities

4.       STRATEGY 2010
4.1     Issuance Strategy in the Coming Years
4.2     Issuance Strategy in 2010

5.       GOVERNMENT DEBT AND INTEREST COSTS
5.1     Government Debt Rose in 2009
5.2     Rising Government Debt has Led to Higher Interest Costs
5.3     Public Debt Measures

6.       ISSUANCE AND TRADING IN GOVERNMENT SECURITIES
6.1     Primary Dealer System for Danish Government Securities
6.2     Market Making Platforms in 2010
6.3     Market Making in 2009
6.4     Turnover in Danish Government Securities
6.5     Issuance of Government Bonds

7.       ASSETS IN THE GOVERNMENT FUNDS
7.1     The Social Pension Fund
7.2     The Advanced Technology Foundation
7.3     The Preventive Measures Fund

8.       RE-LENDING AND GOVERNMENT LOAN GUARANTEES
8.1     Purpose and Framework
8.2     Credit Facilities Resulting from the Financial Crisis
8.3     Re-Lending in 2009
8.4     Government Loan Guarantees in 2009
8.5     Development in Re-Lending and Loan Guarantees

9.       RISK MANAGEMENT
9.1     Interest-Rate Risk
9.2     Exchange-Rate Risk
9.3     Credit Risk

SPECIAL-TOPIC SECTION

10.      MANAGEMENT OF THE CENTRAL GOVERNMENT'S INTEREST-RATE RISK
10.1    Consolidated Risk Management
10.2    Separation of Issuance Strategy and Risk Management
10.3    Interest-Rate Risk
10.4    Interest-Rate Fixing
10.5    Cost-at-Risk Model
10.6    Budget Risk
10.7    Instrument Risk
10.8    Summary

11.    ISSUANCE STRATEGY IN THE COMING YEARS
11.1   Consolidation of Central-Government Borrowing
11.2   The Crisis has Led to Government Budget Deficits
11.3   Issuance Strategy to Match a Higher Borrowing Requirement
11.4   A Robust Strategy if the Government Budget Deteriorates

12.    NEW MARKET-MAKING OBLIGATIONS FOR PRIMARY DEALERS
12.1   International Trends
12.2   New Danish Market-Making System from January 2010

APPENDICES

Information on government borrowing and debt

Principles for management of credit risk on government swaps

Terms for the Securities Lending facilities of the central government and the social pension fund

APPENDIX OF TABLES

1. Central-Government Debt, Year-End 1999-2009
2. Service on Central-Government Debt as of 31 December 2009
3. The Central Government's Current, Investment and Lending Balance, Net Cash Balance andGross Deficit, 1999-2009
   
4. Issuance of Central-Government Securities, 2009
   
5. Central-Government Interest-Rate Swap Transactions, 2009
   
6. Central-Government Currency Swap Transactions, 2009
   
7. Central-Government Debt as of 31 December 2009
   
8. Central-Government Interest-Rate Swaps as of 31 December 2009
   
9. Kingdom of Denmark's Rating of Central-Government Debt
   
10. Rating of Selected Countries' Central-Government Debt, January 2010

GLOSSARY