Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
Factsheet for measure NO-2020-13/729 – measures in Norway
|Country||Norway , applies nationwide|
|Time period||Open ended, started on 27 March 2020|
|Type||Legislations or other statutory regulations|
Supporting businesses to stay afloat
– Access to finance
|Author||Aasmund Arup Seip, FAFO and Eurofound|
|Measure added||19 April 2020 (updated 05 May 2020)|
The government proposes to restore the Government bond fund with a limit of up to NOK 50 billion. The largest Norwegian companies largely borrow money in the credit bond market. In the near future, many of these companies will need to secure financing in this market. However, the bond market's ability to provide credit has diminished substantially in recent weeks. Liquidity is low and risk premiums are high. Previous experience has shown that the Government bond fund can contribute to a more efficient market for credit bonds. This will make it easier for the big companies to get the liquidity they need in the difficult situation created by Covid-19.
The Government Bond Fund shall be used for the purchase of bonds in the market. It is established with an investment limit of up to NOK 50 billion. The presence of the fund is intended to encourage other investors to participate in the bond market as well. The Government Bond Fund’s Investments in new credit bond loans will be made in cooperation with other investors and on market terms. Within a mandate set by the Ministry of Finance, the National Insurance Scheme Fund (Folketrygdfondet) will decide on which bond loans to invest in. The mandate of the Fund instructs management to seek to achieve the highest possible return on costs over time and at the same time contribute to increased liquidity and capital access to the credit bond market in Norway, within the framework that applies as for the management of the Fund. The return is measured in Norwegian kroner. In its exercise as creditor, the management of the fund shall have as its overriding objective to protect the financial interests of the fund.
No information to date.
|Does not apply to workers||
||Does not apply to citizens|
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Form||Direct consultation outside a formal body||Direct consultation outside a formal body|
Social partners' role in the implementation, monitoring and assessment phase:
Social partners have been consulted regularly during design and implementation of the measure.
Eurofound (2020), Restoration of the Government Bond Fund, measure NO-2020-13/729 (measures in Norway), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/NO-2020-13_729.html
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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.