Lars Rohde, the National Bank of Denmark (NBD) governor, believes the Danish government is on the cusp of eradicating the "excessive refinancing risk" in the country's mortgage bond market.

The new bill, drawn up by the government with the help of the central bank, aims to "protect borrowers against sizeable increases in their interest payments", according to an NBD statement. In Denmark, mortgage loans are issued to the public through mortgage banks, which fund the loans entirely through the