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Net financial assets surpass NOK 4 000 billion
statistikk
2011-12-21T10:00:00.000Z
Public sector;Public sector
en
offogjeld, General government, financial assets and liabilities, central government, local government, stock, transactions, assets by type (for example bonds, shares, lending), net assets, liabilities by type (for example commercial papers, bonds, loans)Local government finances , General government , Central government finances , Public sector
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General government, financial assets and liabilities, 2010

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Net financial assets surpass NOK 4 000 billion

At the end of 2010, general government net financial assets increased by NOK 478 billion to an all time high of NOK 4 170 billion.

General government’s financial assets amounted to NOK 5 422 billion; an increase of NOK 577 billion from 2009. The portfolio was dominated by shares, which constituted 48 per cent, while long-term bonds and loans (receivable) amounted to 25 per cent and 14 per cent respectively. Ninety-six per cent of general government’s gross financial assets were a part of central government, which, amongst others, includes Government Pension Fund Global.

General government’s total liabilities totalled NOK 1 252 billion, which represents an increase of NOK 99 billion compared to the end of 2009.

Central government’s financial situation improved

High levels of revenue from the petroleum sector once again contributed to large net investments in financial assets. In 2010, central government net bought long-term bonds and shares for NOK 194 billion and NOK 78 billion respectively. Loans receivable also increased, by NOK 72 billion, while total liabilities increased by NOK 58 billion.

Parallel to the large net investments, a substantial increase in the value of the shares portfolio also improved the financial situation. Revaluations saw the share portfolio increase by NOK 207 billion, while long-term bonds fell by NOK 11 billion.

Deficit in local government

Local government’s deficit, measured by net lending, totalled NOK 33 billion for 2010. The deficit was financed by increased levels of debt. Loans (payable) increased by NOK 17 billion, while short-term bonds increased by NOK 15 billion.

Local government’s total liabilities constituted NOK 372 billion, while total assets were valued at NOK 236 billion.

General government’s gross public debt

One of the main criteria of the Maastricht Treaty is that a country’s gross public debt should not exceed 60 per cent of its gross domestic product (GDP). Gross public debt, as defined in the Maastricht Treaty, is often used in international comparisons. It includes gross debt from bonds, loans, certificates, commercial papers and treasury bills, measured at face value and consolidated for debt between different units within general government.

In 2010, gross public debt, according to the EU’s definition, totalled NOK 1 101 billion, or 43.7 per cent of GDP.

Gross public debt as percentage of GDP

Gross public debt in accordance with the Maastricht Treaty. NOK million
Year Gross public debt. Face value Gross domestic product Gross public debt as a percentage of GDP
2000  421 918 1 481 242 28.5
2001  423 305 1 536 887 27.5
2002  527 450 1 532 307 34.4
2003  675 588 1 592 201 42.4
2004  770 909 1 752 812 44.0
2005  832 163 1 958 907 42.5
2006 1 174 115 2 180 801 53.8
2007 1 170 492 2 306 445 50.7
2008 1 234 899 2 559 914 48.2
2009 1 025 117 2 356 599 43.5
2010 1 101 601 2 523 226 43.7

Liabilities connected to the Government Pension Fund Global

Repurchase agreements and re-sale agreements in securities are frequently used instruments in the administration of the Government Pension Fund Global. The fund sells a portfolio of securities accompanied by a repurchase agreement. In the accounts, the portfolio remains on the asset side of the fund’s balance sheet. The corresponding sales value is entered as a loan from the buyer on the liability side of the balance sheet. The reverse situation is called a re-sale agreement or a reversed repo.

The European System of Accounts (ESA) requires re-purchase agreements to be included in the balance category loans. This means that liabilities associated with repos in the Government Pension Fund Global are included in the official estimation of Norway’s gross debt. As repurchase agreements inflate both sides of the balance sheet, the gross debt, calculated according to ESA, presents a misleading picture of the financial situation of the general government in Norway.

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