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Article: Norway urged to merge funds to create a pension colossus; Oil profits could be used as basis for new funded plan.(Norges Bank )
- Article from:
- Pensions & Investments
- Article date:
- December 11, 2006
- Author:
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Byline: Thao Hua
OSLO - Norway's Government Pension Fund-Global, which is already the second largest in the world at e210 billion ($279 billion), might get even richer.
A paper by a Norges Bank economist proposes combining the oil reserve fund with other government assets to create a new public pension fund initially worth an estimated e305 billion. That fund could nearly double in size within the next five years if the country's oil revenue continues to skyrocket.
Gunnvald Gronvik, Oslo-based special adviser to Norges Bank's financial stability division, urged the Norwegian government to take advantage of the "extraordinary fiscal position'' ...