The Danish FSA rejected Østjydsk Bank A/S' plan to redeem some of its governmentloans ahead of time, FinansWatch reported Oct. 2.

The bank had intended to redeem 40% of its government hybridcapital before it is due in 2018, in order to save annual interest ratepayments of around 7 million Danish kroner, the report added.

As of Sept. 30, US$1was equivalent to 6.62 Danish kroner.