NORWAY: extension of state backed credit guarantee to buyers and processors of fish

In my posts of 2 February 2009 and 10 May 2009 I was referring to the fund that the Norwegian government had set-up through "Innovasjon Norge" to guarantee "first hand" sales of fish.

Now the outgoing fisheries minister Ms Helga Pedersen has proposed to the Norwegian Parliament (Stortinget) to amend the previous legislation to provide a up to NOK 250 million (USD 43 million) government backed loans to the fishing industry in 2009.

It is also proposed to expand the scope of the of the existing credit guarantee scheme with an amount of NOK 97.5 million (USD 16.8 million) so that the loans can be now granted to fish buyers, without an obligation to replenish stocks of raw material.

The government is concerned that parts of the fishing industry, in particular the processing sector, will not have sufficient liquidity to buy raw materials (cod) as the 2010 cod fishing starts. According to the Norwegian government “This could provide unacceptable consequences for the fishermen and some coastal communities that depend on the cod fishery”.

Here is the link to the government’s announcement (in Norwegian):


No comments: