VIII.  TRADE AND PROJECT FINANCING

Brief Description of The Banking System:  The core of the
Danish banking system is the Danish National Bank, an
autonomous central bank.  It establishes monetary policy
including the interest rate structure and monitors money
supply. There are just over 100 commercial banks in Denmark,
all of which operate under the same basic conditions.  Of
these, two are by far the largest, Den Danske Bank and
Unibank.  Both have a nationwide network of branch banks.  The
largest, Den Danske Bank, had total assets of $52.6 billion at
the end of 1993 and employed 12,500 people at year-end.
Unibank, the second largest, had total assets of $35.7 billion
and a staff of 11,250.  The interests and activities of major
Danish banks are very broad.  For example, Den Danske Bank
Group in addition to its commercial banking activities has
subsidiaries engaged in mortgage finance, stockbroking,
leasing, factoring, investment, property and insurance.
Several banks operate branches abroad, including in the United
States.  There are many, mostly European, foreign branch banks
in Denmark including two American banks.  These are Citicorp
and Republic National Bank of New York. In addition to the
commercial banking system, other major financing institutions
include mortgage financing companies, leasing and factoring
companies, government and private venture capital
organizations and pension funds.

Foreign Exchange Controls Affecting Trading: There are no
foreign exchange controls in Denmark.

What is General Financing Availability:  The vast majority of
small to medium sized Danish firms are financed by commercial
bank credit lines.  The credit line is typically extended on a
continuous, revolving basis and is not subject to an annual
settlement.  Such credit lines are usually established  to
finance day-to-day operations, including inventory financing.
Larger corporations may obtain capital through stock offerings
on the Copenhagen Stock Exchange (in some cases even on U.S.
stock exchanges), or through direct negotiation with
institutional investors such as pension funds.  Financing is
often a problem for small to medium sized companies with high
growth, or growth potential.  Frequently, such companies chose
or are forced to solve their financing problems by selling out
to foreign corporations, including U.S. corporations.

How to Finance Exports/Methods of Payment:  U.S. exports to
Denmark are usually financed by the importer or the importer's
bank.  Eximbank financing is available but rarely used.  The
most common method of payment for an importer in the early
phases of a business relationship is by Irrevocable Letter of
Credit opened through a commercial bank.  This is a recognized
procedure, well-known and acceptable to Danish banks and
importers.
When a business relationship has reached a stage of mutual
trust, payment credits are often extended by the exporter for
periods varying from 30 - 90 days.  There are no local credit
facilities available specifically to finance imports from the
United States, or any other country.

Project Financing Available, Including Lending from
Multilateral Institutions and Types of Projects Supported:
There is no such financing available in Denmark.

List of Banks with Corresponding U.S. Banking Arrangements:

All major Danish banks have correspondent bank relationships
in the United States.  Most of them have such relationships
with more than one American bank.  The two largest have
branches in New York as follows:

Den Danske Bank
280 Park Avenue
New York, NY 10017-1216

Unibank A/S
13-15 West 54th Street
New York, NY 10019