NATION

PASSWORD

2

DispatchBulletinNews

by Denvaal. . 15 reads.

| DEN STATLIGA PLANEN FÖR FINANSKRISEN - THE STATE PLAN FOR THE FINANCIAL CRISIS |



SAMVÄLDET DENVÅL


Välkommen till Samväldet Denvål: Den Statliga Planen för Finanskrisen
Welcome to the Commonwealth of Denvaal: The State Plan for the Financial Crisis

Since the 1998 March Recession, the Ministry for the Economy has enacted financial stability checks, a national and global economic stability monitoring system, and has continuously made preparations for the creation of a stability plan in the case of a recession. After the Bremen Bank Default made a European recession a large possibility, The Denvaalian Ministry for the Economy has announced its updated plan for Denvaalian economic stability, designed to keep Denvaal out of a recession. Here are the basics of The State Plan for the Financial Crisis.

The official currency of Denvaal is the Denvaalian Krona, which is abbreviated as DSK (Denvåls Samväldets Krona). The Denvaalian Krona tends to fluctuate in between the Danish Krone and the Swedish Krona. The Central Bank of Malmö, which regulates the use of the DSK, in cooperation with the Ministry for the Economy, has published new standards, in order to stabilize the DSK. It is expected that the Swedish Krona and the Danish Krone, both accepted in parts of Denvaal, will both suffer from inflation. Due to the high level of inter-currency exchange that happens in Denvaal, the Government of Denvaal will coordinate monetary policy with the Danish and Swedish Governments. The Central Bank of Malmö will likely lower interest rates in an expansionary policy, but would like to work closely with the Danish and Swedish Governments to ensure that the Danish Krone, the Swedish Krona, and the Denvaalian Krona all keep their inflation relatively small. If a recession does happen, and in the unlikely event that expansionary policies lead to larger than expected inflationary price level increases despite economic performance below GDP potential, the Central Bank of Malmö may limit the acceptance of the Swedish Krona in select areas of Gotland, Kalmar, and Blekinge, and may limit the acceptance of the Danish Krone in select areas of Skåne. In this case, there would be close coordination with the Swedish and Danish monetary and economic authorities.

The largest industries in Denvaal are financial services, real estate, technology, agriculture, vehicle manufacturing, and tourism. This report will address the stability of these industries as well as the plan for ensuring continue stability in the event of a recession.

The four international banks of Denvaalsbank, Commonwealth Nordic Limited, Södrabank International, and SDB are headquartered in Denvaal. Together, they account for around 48% of financial activity in Denvaal. The rest of the banks in Denvaal are co-operative municipal banks. These banks account for 46% of financial activity in Denvaal, and are considered safe by the Denvaalian Government due to the high-level of self regulation that these banks have. The two foreign banks in Denvaal, Danskebank and Deutschebank, account for 6% of financial activity in Denvaal. Owing to the importance of Denvaalian finance in the economy, the Government has identified the four international banks as the area of prioritization when it comes to financial policies. The two foreign banks, especially Deutschebank, will be subject to Denvaalian transparency and bank failure law, should they default.

The Denvaalian housing market is dominated by the Association of Cooperative Banks (Sammanslutningen av Kooperativa Banker / SKBP). 85% of all real estate finance are done through these municipal and cooperative banks. Another 7% of real estate finance is estimated to be done by Ystads Södrabank, the national branch of Södrabank International. Since the 2004 Södrabank Breakup, Ystads Södrabank has been wholly Denvaalian owned and is part of the Malmö Stock Exchange. Since the 1998 March Recession, the Malmö Stock Exchange (MSE) has developed, with its parent company AB SVED, a non-stock reserve. With the high-level of self-regulation among the SKB, as well as the AB SVED-MSE Reserve System, it is expected that the Denvaalian Real Estate and Housing Market will be able to guarantee stability to Denvaalian real estate debtors.

In technology, university and government funded research will be continued. The Denvaalian Education Fund (DUF), a state pension fund for research and universities, has announced that it will increase its monthly funding by 37% for a period of 11 months. The Ministry for Education has committed to a three-year 99% forced retention rate across the board, meaning that staffing and faculty will not be cut by more than 1% for three years. The DUF will use its reserves to support Denvaalian Universities in these efforts, owing to the fact that many Denvaalian Universities receive a small portion of their funding from investments.

Agriculture is the overwhelmingly dominant industry in rural areas. Since 2001, there has been no expansion of agricultural land into forested areas, and the agricultural industry has been embracing new technology to become more efficient, aided by state subsidies. The Denvaalian Government has announced that it may increase the Denvaalian Agricultural Program, if the recession proves to effect Denvaalian agriculturalists in a large way. With the large amount of agriculture, particularly the Skånska rapeseed industry, that goes towards livestock food, the Danish pork industry will be the focus of the Denvaalian Agricultural Ministry. Ensuring a steady demand for Denvaalian agriculture will be key, especially from the Scandinavian meat industries for which Denvaal produces so much feed.

Denvaal is also home to multiple auto and transport manufacturing factories, as well as two large construction company. The largest non-financial company in Denvaal is SKANSKA, an international construction company. PEAB is also a large construction company catering to the Nordic region. For SKANSKA, ensuring the continuation of large building projects around the world through a possible recession is of paramount importance. For PEAB, the stability of companies in the Nordic region is of paramount importance. The Denvaalian Government will work with other Nordic nations to ensure that Nordic companies and governments continue funding for construction projects. The transport company of Scania is headquartered in Skåne. The Denvaalian Ministry for the Economy has proposed to the Denvaalian National Assembly that the planned 2009 update to the Denvaalian Public Transport System be moved to next month. The auto company Volvo, backed by AB SVED, and with its own financial group (Volvo Financial Services) linked to the stability of the SKB, is expected to identify sales as the largest concern through an impending recession. The recent announcement of the Swedish State partnership helps Volvos odds, although the Denvaalian Government remains quite restricted from any actions to help Volvo.

The Denvaalian Government will announce its plan for the last industry in Denvaal, Tourism, shortly.

Denvaal

Edited:

RawReport