The Roskilde Bank scandal has developed into the worst possible billion kroner nightmare for the Danish state and its taxpayers.

Losses have become greater than envisaged when the bank was taken over by the central bank Nationalbanken and the Danish Contingency Committee for Winding up and Transfer of Banks, Savings Banks and Cooperative Savings Banks in Financial Distress (DCC).

Losses have reached DKK 10 billion, the bank’s Director Lars Jensen tells Økonomisk Ugebrev, adding that losses will continue to mount up and it is not clear when they will stop.

At the same time, the Banking Association will not be paying out more that the DKK 750 million that the DCC provided when it took over the bank in 2008, meaning that taxpayers will be footing the bill.

So far, the losses at Roskilde Bank amount to what it costs to run all of the services of the entire council of Roskilde, with its 82,000 inhabitants, for two full years – including schools, pre-schools and care for the elderly.