Press Release

29 September 1997

The Norwegian Government announces sale of commercial bank shares

Norwegian finance minister Jens Stoltenberg has announced a partial sale of the Government's stake in Den norske Bank and Christiania Bank og Kreditkasse (Christiania Bank). The Government foresees a reduction of state participation in the two banks from above 50 pct. today down to one third. The sale will be carried out on a commercial basis, and will probably take place in 1998 unless market conditions should indicate a delay until 1999.

The Government will pursue a policy to ensure a stable national ownership in the two largest commercial banks. A state participation of one third is sufficient to accomplish this policy.

State ownership in Den norske Bank and Kreditkassen came about as a result of the Norwegian banking crisis in the early 1990's, when several banks were recapitalized by the Government Bank Insurance Fund after huge loan losses. In 1991 a new body, the Government Bank Investment Fund, was created to take care of the Government's long-term commercial interests in the banking industry. A policy to retain a majority in the two largest commercial banks was approved by the Storting in 1994. Through successive sales of bank shares from 1993 till 1996 the state participation has been taken down to the present level of 52 pct. in Den norske Bank and 51 pct. in Christiania Bank. The Government's stake in Den norske Bank and Christiania Bank presently has a market value of approximately 10 bn. kroner and 7 bn. kroner respectively.