The loan will be part of ensuring that the IMF has sufficient lending capacity to assist member countries with emergency funding. This is vital also for countries in Europe.
“Many of Norway’s trade and cooperation partners are in a difficult economic situation. We have a strong interest in international economic and financial stability”, says Norwegian Prime Minister Jens Stoltenberg.
Pending the approval of the Norwegian Parliament, Norway’s loans will be made available to the IMF’s general lending operations. The funds will therefore be available for all IMF member countries, and not earmarked for any particular region or group of countries.
According to IMF the Norwegian economy continues to perform well amidst global turbulence. In November 2011 IMF projected growth in mainland GDP to be around 2,5 percent for 2011 and 2012. “Norway’s economy is better placed than many in Europe to weather an intensification of eurozone stress, given its low sovereign risk and the limited direct exposure of Norway’s banks to the most vulnerable eurozone countries”, the IMF says in the concluding statement of the IMF Mission for the 2011 article IV consultation with Norway. Nonetheless, the IMF Mission also stated that “severe stress would undoubtedly affect Norway (...)”. In a press release on the 22 November 2011 commenting on the IMF Missions Statement the Norwegian Minister of Finance Sigbjorn Johnsen said: “Norway is not insulated from what happens in the rest of the world. Our best protection is to keep our own house in order.”