No sweet Valentine from bank boss

Norway’s strong economy and disciplined approach to the management of its oil wealth didn’t stop the boss of the country’s central bank from sending out warnings instead of Valentine’s Day greetings on Thursday. Øystein Olsen told the country’s government and business leaders in his annual address that even though the offshore sector continues to boom, [...]

Oil fund may triple 2013 bonus payments

Bonus payments made this year to external managers of Norway’s huge so-called “oil fund” may be triple the amount initially estimated in 2012. The fund, formally known as The Norwegian Pension Fund – Global, is one of the world’s largest sovereign wealth funds. The oil fund was established in 1990 as a fiscal policy tool to [...]

Banks face potential rate scandal

Norwegian banks are facing claims by several international financial institutions that they’ve been manipulating their interbank lending rates. Norway’s central bank, Norges Bank, is worried and has asked financial regulators to investigate. “If this isn’t market manipulation, I don’t know what is,” a large, international bank wrote in a letter to Norges Bank and obtained [...]

Crime unit probes cash redemption

Various denominations of Norwegian currency printed as far back as 1979 will be rendered worthless as of November 1. Norway’s economic crimes unit Økokrim is closely following the redemption now going on all over the country, to be on the lookout for money laundering. Newspaper Dagens Næringsliv (DN) reported that several banks nationwide have reported [...]

‘No interest rate increase this year’

Norway’s central bank, Norges Bank, not only refrained from raising interest rates on Wednesday but its deputy governor said its key lending rate is likely to remain stable for the rest of the year. It currently stands at an historically low level of 1.5 percent. Jan F Qvigstad told reporters that the bank’s executive board, [...]

Battered bank boss still smiling

Øystein Olsen, head of Norway’s central bank, was still smiling this week, even after his proposal to further limit use of oil revenues was torpedoed by a united government last week. And he told foreign correspondents in Oslo on Tuesday that he still thinks politicians shouldn’t spend more than what the fund holding the oil [...]

Norway’s currency stronger than ever

The Norwegian krone set another record last year in terms of sheer strength, compared to other foreign currencies. That makes Norway even more expensive than normal for visitors from abroad and poses problems for Norwegian exporters, while Norwegian residents themselves can save thousands on overseas shopping trips and holidays. Newspaper Aftenposten reported Tuesday that the [...]

Banks reluctant to cut dividends

Norway’s central banker and its finance minister have called on the country’s commercial banks to boost their own capital, to better meet financial turmoil. It remains unclear whether the call will be heeded, since the boss of Norway’s biggest bank, DNB, is non-committal about cutting dividends to retain funds. Øystein Olsen, chief of Norway’s central [...]

Household debt hits record high

As Norway’s central bank board prepared for its latest evaluation of interest rate levels Wednesday afternoon came a report that likely won’t surprise anyone trying to buy a home: Norwegians’ debt burden is higher than ever before, mostly because interest rates are relatively low and housing prices have been steadily rising for years. Newspaper Aftenposten [...]

Central bank tackles strong currency

Signals from Norway’s central bank boss Øystein Olsen that the bank may even cut interest rates rather than raise them have boosted hopes for Norwegian exporters battling the ill effects of the country’s strong currency. Home buyers, though, will likely face even higher housing prices. It currently costs only around 8.6 Norwegian kroner (crowns) to [...]

Interest rates unchanged as stocks fall

The Norwegian central bank, Norges Bank, has decided to hold interest rates at 2.25 percent in light of continuing global economic uncertainty, despite having originally planned further rises this autumn. Interests rates were raised to 2.25 percent on 12 May and the bank’s plans had predicted further rises at the end of 2011. Meanwhile, the [...]

Stock Exchange rallies despite fears

Norwegians have begun predicting the possible consequences of the unfolding drama in international markets for the country, as the Oslo Stock Exchange itself put days of successive falls behind it to close trading up 1.06 points to 348.05 on Tuesday. The index fell dramatically at the start of trading but rallied quickly, boosted by a [...]

Interest rates held at 2.25 percent

Norway’s central bank, Norges Bank, has decided to keep interest rates at 2.25 percent in a move widely anticipated before today’s meeting on the issue – although rises are predicted later this year. The deputy head of the bank, Jan F Qvigstad, told news agency NTB, “we put the rates up in May, keep it [...]

Former oil fund boss comes home

Knut Kjær, the founding and former chief executive of Norway’s mammoth oil fund, is moving home after living and working overseas since leaving Norges Bank Investment Management (NBIM) in 2007. Now he’ll be chairman of a new asset management firm. Kjær sent out a clear signal that he wanted to come home to Norway when [...]

Retired central banker dies at 85

Hermod Skånland, who was head of Norway’s central bank (Norges Bank) when the country went into its worst bank crisis ever, died at a nursing home at Jaren in Oppland County on Saturday. He was 85. Skånland stepped down at the end of 1993, after serving nine years and riding out the storm caused by [...]

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