Norway is benefitting from the debt crises affecting the USA and the Eurozone as money continues to flow in Norwegian government bonds.
Financial newspaper Dagens Næringsliv has revealed that the rate of interest on government bonds has fallen to a record low. Figures from bank DnB Nor show that interest on bonds with a 10 year term fell from 2.8 percent on Monday to 2.63 percent on Tuesday, something analyst Camilla Viland described as “a very big change in one day.”
The leader for credit analysis at securities markets analysts First Securities, Pål Ringholm, told Dagens Næringsliv that “Norway is the world champion in credit and is the land in the world where market actors enjoy least risk for default on government debt.”
The strength of the Norwegian kroner has also increased steadily in recent times. The rate of exchange on Tuesday reached 7.643 kroner to the Euro, which constitutes the strongest level since late 2007. Analyst Viland told Dagens Næringsliv that while “seen historically the kroner has not been a safe haven,” the crises hitting the USA and Eurozone make it “more attractive.”
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