$2 bn Norway bonanza ahoy! | business | Hindustan Times
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$2 bn Norway bonanza ahoy!

Wall Street may be in trouble and US-based brand-name FIIs may be running for cover, but there is good news from other quarters. Amit Baruah reports.

business Updated: Oct 21, 2008 20:39 IST
Amit Baruah

Wall Street may be in trouble and US-based brand-name foreign institutional investors (FIIs) may be running for cover, but there is good news from other quarters.

The country’s equity markets, battered in recent weeks, are set to see an injection of $2 billion from Norway’s Government Pension Fund – in a vote of confidence by the oil-flush Scandinavian nation to the “India Story.”

The fund, like California’s Calpers, is a giant pension fund, said to be the third largest in the world.

Thorvald Moe, deputy secretary general of the Norwegian finance ministry, told a select media briefing the amount will come in between “now and December.”

The fund has investments of $350 billion spread across global markets. It invests in equities, bonds and real estate.

As of now, the Fund already has about 1.8 billion Norwegian kroner ($270 million) parked in Indian markets, but Norway is planning to change all that.

“We are not bothered about the stock markets coming down,” Moe, who met senior officials in finance ministry, asserted confidently.

Norway also wants to conclude a bilateral tax treaty as soon as possible. Finance ministries of the two countries have also agreed upon a system of annual consultations, the official revealed.

He also said that Norway had some “ethical guidelines” for making investments, avoiding child labour and favouring ecologically sound projects.