Equity increase for Kommunalbanken

The Government proposes to increase the equity of Kommunalbanken by NOK 1,118 million. “This will ensure municipalities continued good access to loans,” says Minister of Local Government and Regional Development, Liv Signe Navarsete.

“Kommunalbanken will then be able to continue to increase its lending to municipalities. The municipalities need loans for the construction of schools, nursing homes and roads. Increasing the equity of Kommunalbanken will help to ensure sound development in the municipalities,” says Navarsete.

Kommunalbanken plays an important role in financing municipal infrastructure.

Lending by the bank has grown rapidly in recent years, driven by the huge demand for loans from municipalities in connection with the construction and improvement of kindergartens, schools, nursing homes, roads and water and sewer services.

The capital increase contributes to meeting new capital adequacy requirements. Meanwhile, the bank can continue to provide loans to municipalities.

With its increased equity, KBN will meet the Financial Supervisory Authority of Norway’s new capital adequacy requirements.

 

The Ministry of Local Government and Regional Development’s media line: +47 22 24 25 00