350 Billion Kroner Government Bond Swap Facility, Authorisations to Borrow

On Sunday 12 October 2008 the Minister of Finance announced initiatives to enhance confidence in the financial markets. Today, the Ministry of Finance presents to the Storting (Parliament) a proposition on an authorization to implement a 350 billion kroner facility with banks, where Government Bonds are swapped for covered bonds.

The Ministry also asks for authorization for 2008 and 2009 on central government borrowing in 2009.
The government’s gross financing requirement for 2009 is NOK 70.3 billion. The financing requirement is planned to be covered by borrowing in the domestic market, and by drawing on the cash reserves.

In addition, the Ministry will ask for authorisation to issue Treasury bills and bonds for use in a swap agreement with banks, see press release of 12 October.

Therefore, the Ministry proposes authorisation to raise NOK 450 billion in new long-term loans. Maximum outstanding of short-term market instruments (Treasury bills) is proposed at NOK 430 billion.