On November 18, 2011, the Norwegian government announced that it will establish a state owned and funded export finance scheme for CIRR qualifying loans. It is planned that the new state owned entity will be operational from July, 1, 2012 at the latest. Until then, an interim arrangement in cooperation with Eksportfinans has been put in place. The Norwegian parliament approved this when passing proposal number 138 S (2011-2012), as per proposition 34 S and 42S (2011-2012). There is no upper limit for new loan offers for the interim period. The grant for new loan approvals and transfer of certain existing loans from Eksportfinans has been proposed at NOK 40 billion.
On December 21, 2011 the Ministry of Trade and Industry and Eksportfinans entered into two agreements regarding the government’s acquisition of the export financing scheme for CIRR qualifying loans from Eksportfinans. One agreement regards Eksportfinans’ provision of services to the government in the interim period until a permanent state owned entity is in place. In this period, Eksportfinans will perform the same tasks as it has done previously, but on behalf of the government. In this period, the government will be the borrower’s counterparty in respect of offers and when loans are paid out. The second agreement concerns issues relating to the employees. The parties have agreed to apply the Working Environment Act’s principles for transfer of undertakings for those employees that work with CIRR qualifying loans and naturally associated activities. In accordance with the act, the employees concerned will have a preferential right to employment in the new state owned entity.
In addition to the above, the Ministry of Trade and Industry and Eksportfinans have entered into agreements for the transfer of seven loans from Eksportfinans to the government. These are loans that Eksportfinans have disbursed for its own account after November 18, 2011 pending completion of formalities for the state’s assumption of the export financing scheme. This encompasses loans totaling about NOK 7 billion. Some further loans in the same category will be transferred to the government early in the new year (2012).
Click here for more information about the new Norwegian export financing scheme.