The Norwegian Government has decided to contribute NOK 240 million to a new scheme that will provide highly subsidised loans to the world’s poorest countries in the event of an exogenous economic shock, for example due to a natural disaster, war in the region or sharp fluctuations in the prices of import or export goods.

As International Development Minister Erik Solheim explained, trading conditions in many developing countries have deteriorated as a result of strong fluctuations in the price of raw materials. “This new scheme will act as a buffer and will help to ensure continuity in the fight against poverty, even in cases where vulnerable, poor countries have to deal with sudden severe economic shocks due to external circumstances,” he said.

The fund has been established by the International Monetary Fund (IMF) following a proposal from the G8.

“The Norwegian contribution to the fund will also give Kristin Halvorsen and me an opportunity to engage in a closer dialogue with the IMF. I believe Scandinavian influence will benefit IMF,” Mr Solheim added.

Press contact: Head of Information Espen Gullikstad, tel.: +47 91 70 81 22