7 minutes agoNorway saves $1.09 for future generations
Periskopi(7 years ago)
(7 years ago)Norway's Sovereign Fund, also known as the Oil Fund, reached 10 trillion Norwegian Crowns (1.09 trillion dollars), setting a historical record Friday. The increase came as a result of increased global stocks and strengthening the euro and the dollar. Created in the 1990s to exploit income from [...]
Created in the 1990s to take advantage of the revenue coming from oil, the Norwegian Fund is the largest of its kind in the world.
When the fund was created, no one thought it would exceed 10,000 billion euros. We were lucky to find oil. Returning to investments in global financial markets has been so large that it can be compared as if we had discovered oil again”, Yngve Slingstad, chief executive of the fund, Reuters reports.
Every Norwegian has at least $200,000 in this fund, which represents a great fortune for future generations.
Most of this fund's money is invested in international financial markets, and only part of it is invested within Norway. Incomes coming from the Nordic State of Oil are poured into the fund. This enables the country to retain its capacity to pay if oil will be reduced or if prices fall. It also serves as a reserve for future generations.
Part of the profit goes to state investments or pensions, without having to raise taxes for citizens.
