Press Release

20. November 1997

Authorisations to borrow in 1998

Today, the Ministry of Finance presents a proposition to the Storting (the parliament) concerning authorisations for domestic and international borrowing in 1998. The government's gross borrowing requirement for 1998 of 26.2 billion kroner will be covered partly by domestic borrowing and partly by a reduction of the State's cash balances.

Developments in the money and financial markets have illustrated the need for flexibility to adjust the government's borrowing to changing conditions during the year. Therefore, the Ministry of Finance asks for authorisations to raise loans that combined exceed the borrowing requirement. The Ministry proposes authorisations concerning new long-term domestic loans and new international loans of 40 billion kroner and 10 billion kroner respectively. Authorisations for maximum outstanding in short-term market instruments (certificates, bills etc.) and other short-term debt instruments are proposed unchanged from 1997 at 150 billion kroner and 90 billion kroner, respectively.

The actual programme of domestic borrowing will be decided later. In December, the Ministry of Finance and Norges Bank will publish auction calendars of the issuance of government bonds and certificates in the first six months of 1998.