For the first time in 183 years, one of the happiest countries in the world does not owe anything

Since the 19th century, Denmark borrowed abroad to finance everything – the war against Germany to the construction of railroads

One of the most affluent countries in the world, Denmark, paid off its $ 1.5 billion worth of foreign exchange debt bonds this week, releasing the first time in 183 years of all foreign currency debt obligations.

Recall, in the report of the United Nations about happiness in the first place is Norway, and on the other “neighbor” Denmark.

According to the agency “Bloomberg”, just four decades when it was far poorer, Denmark is faced with devaluations and economic deterioration.

– In the early 1980s, Denmark was where is now Greece – the economic crisis – said Jens nervig Pedersen, senior analyst at the Danish A / S Bank, noting that now the country among the absolutely strongest with a record high current account surplus and strong public finances.

Since the 19th century, Denmark borrowed abroad to finance everything – the war against Germany to build railroads. The deficit of the country was growing so fast that in the late 1970s and early 1980s, Denmark was forced to devalue the national currency, the crown, in order to re-balance its economy.

The official Copenhagen is then introduced a fixed exchange rate regime and undertook economic reforms in order to transform Denmark into a bastion of stability with a credit rating of AAA, which holds today. The reforms included the curb borrowing by consumers through the price increase rates on loans.

Today, Denmark is not required to broadcast debt securities in dollars or euros, thanks to its huge foreign exchange reserves, which used to defend the value of the crown against the euro. Its foreign exchange reserves of around 467 billion kronor (67.5 billion dollars) are now twice higher than ten years ago.

Foto-ilustracija: pixabay.com

Denmark’s central bank last month sold a 4.7 billion kronor in order to weaken the national currency, because the political risks associated with the French elections triggered foreign investors to seek safety in the Danish assets.

Nordea announced that the political tensions in France might to force Denmark to reach for even greater intervention than those taken last year in order to neutralize the negative impact of the British vote for the exit from the EU.

Denmark central government in March 2014, there is no need to borrow in foreign currency, says Lars Majland Nilsen, head of the Office for the debt in the central bank, adding to the country in 2015 dropped from emissions foreign currency bonds and there are no plans to go out on foreign exchange market is not long in 2016, according to “Bloomberg”.