In the present financial storm, economic analysts describe Norway as a safe haven
In the present financial storm, economic analysts describe Norway as a safe haven.
"Norway has large savings and we learnt from the bank crisis back in the 1980’s. We now have much more stringent bank regulations, than what is currently the case in the United States," says chief economist Tormod Andreassen at SpareBank1.
Chief analyst Erik Bruce at Nordea Markets says that Norwegian banks will experience few of the losses which many foreign financial institutions are suffering.
"The most important thing for Norwegian banks is how their loan customers are doing. There are no indications that Norwegian borrowers will encounter particularly great problems in the foreseeable future. However, borrowers will have to expect interest rates on house loans to rise as a result of the international financial crisis," says Bruce to news bureau NTB.
These views are also echoed by Finance Minister Kristin Halvorsen.
"Norway's sovereign global fund gives us room to manoeuvre. Those who know the markets well are not surprised by what is happening. We may take a loss in the short term, but we'll profit in the long run. We just have to keep calm," says Halvorsen.