Denmark to invest in mortgages

COPENHAGEN, Denmark, Nov. 3 (UPI) -- Denmark said Monday it would buy up to $3.73 billion worth of mortgage bonds to help both homeowners and financial firms.

The decision follows an announcement Friday that the government would take action to protect the Social Pension Foundation. On Monday, the government said it would use funds from the foundation to purchase 1-year fixed-rate mortgages, the Copenhagen Post reported.

Finance Minister Lars Lokke Rasmussen said the financial crisis was the catalyst for using a portion of the foundation's holdings to invest in mortgage bonds to balance interest rate incomes and expenses, the Post said.