The mortgage-credit institutes offer euro-denominated loans, but these loans accounted only for 5 per cent of the total volume of outstanding domestic mortgage-credit loans at end-2005. This should probably be viewed in light of the low interest-rate differential between Denmark and the euro area.
At low interest-rate spreads, the Danish households and firms apparently find it more convenient to borrow in their base currency, i.e. in Danish kroner, since this is the currency denomination of the households' wages and salaries. The last decade or so has also been characterised by some significant changes in the structure of the Danish credit-institute sector.