The Norwegian government has decided to contribute NOK 240 million ($36 million) to a new scheme that will provide highly subsidized loans to the world's poorest countries in the event of an exogenous economic shock.
3/2/2006 :: In the event of situations such as a natural disaster, war in the region or sharp fluctuations in the prices of import or export goods, a country might suffer an economic shock.
As Norwegian International Development Minister Erik Solheim explained, trading conditions in many developing countries have deteriorated as a result of strong fluctuations in the price of raw materials.
"This new scheme will act as a buffer and will help to ensure continuity in the fight against poverty, even in cases where vulnerable, poor countries have to deal with sudden severe economic shocks due to external circumstances," Solheim said.
The fund has been established by the International Monetary Fund (IMF) following a proposal from the G8 countries.
"The Norwegian contribution to the fund will also give Norwegian Finance Minister Kristin Halvorsen and myself an opportunity to engage in a closer dialogue with the IMF. I believe Scandinavian influence will benefit the IMF," added Solheim.
The Norwegian Ministry of Foreign Affairs