Folketrygdfondet to manage revived Government Bond Fund

The Government has decided to revive the Government Bond Fund to help secure access to loan capital for businesses during the ongoing Corona crisis. Folketrygdfondet, which previously managed the Government Bond Fund during the financial crisis, has been mandated to manage the revived fund.

“We have the expertise and experience, and will be in a position to make the initial investments as soon as the legal framework and mandate have been established,” says Folketrygdfondet CEO Kjetil Houg.

An investment limit of NOK 50 billion has been proposed for the Government Bond Fund. Investments will be made on market terms, and are a temporary measure to support the bond market:

“The Fund is intended to provide access to substantial reserves during the present crisis, in the form of liquidity for companies which are natural borrowers in the bond market,” says Kjetil Houg.

Folketrygdfondet will invest the capital of the Government Bond Fund within a framework defined by the Ministry of Finance.

Folketrygdfondet is an asset manager, and will not be authorised to provide credit directly to individual businesses.