(Bloomberg) --
Danske Bank A/S will stop charging negative interest rates to thousands of small business clients as part of a palette of measures intended to stem the fallout of the coronavirus through the economy.
“We are in an extraordinary situation that has major financial implications for society, businesses and families alike,” Chief Executive Chris Vogelzang said in a statement on Sunday. “As the country's largest bank, we have a significant responsibility for helping to minimize the damage caused by COVID-19, and we will go a long way to help our customers through this challenging situation.”
The Copenhagen-based bank said as many as 90,000 small businesses with deposits of less than 500,000 kroner ($74,300) won't be charged negative rates for the rest of the year. Danske said it will keep large corporate clients “up-to-date about developments in financial markets.” The bank will also provide overdraft facilities to customers with consumer loans and to mortgage clients.
Denmark has closed its borders as coronavirus cases have soared well past 800. Last week, the government and central bank eased bank requirements in order to free up the flow of credit into the economy.
To contact the reporter on this story: Frances Schwartzkopff in Copenhagen at fschwartzko1@bloomberg.net
To contact the editor responsible for this story: Tasneem Hanfi Brögger at tbrogger@bloomberg.net
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