“NORWAY AND KOMMUNALBANKEN – TRIPLE-A”: Welcoming remarks at Kommunalbanken seminar 24 January 2012

“Norway and Kommunalbanken – triple A”
Welcoming address
by Ambassador Arne Walther

It is my pleasure to welcome you all to the Embassy’s Arctic Hall this afternoon for a presentation by Kommunalbanken. We are pleased that so many Japanese co-operation partners and stakeholders could come. The President and CEO of Kommunalbanken, Mr. Petter Skouen, has headed the Bank since 1998. He is a frequent visitor to Japan and needs no further introduction. Welcome back Mr. Skouen.

Mr. Skouen and Kommunalbanken were here in Tokyo last in May. In an uncertain situation, when many others stayed away, only two months after the Great East Japan Earthquake and tsunami. The Embassy appreciated greatly that Kommunalbanken, and Mr. Skouen personally, wanted to come back as early as possible to show their solidarity and express condolances and support to Japanese friends and business partners. And to confirm the solid basis for future co-operation and hope for speedy recovery. 

Kommunalbanken’s visit now eight months later is taking place against the backdrop of troubled, and troubling, times in international finance and economy, not least in Europe. This comes in addition to the concerns that we live with watching the various political hot-spots around the world. All these developments and events increase political and economic uncertainties that can affect business transactions and society in general. 

Kommunalbanken’s visit is taking place also against a special uncertainty, which we have been made aware of and which we are trying to dispel. An uncertainty here in Japan related to Norwegian Eksportfinans and Norway’s adherence to an EU directive – the Capital Requirement Directive. The situation is that a public entity will assume responsibility for the government-supported export credit scheme previously managed by Eksportfinans. Eksportfinans will manage the scheme temporarily until a permanent public sector solution is in place. This will happen by 1 July this year at the latest.

Mentioning Eksportfinans, let me use this opportunity to underline that this EU directive is not relevant for government-owned Kommunalbanken and its operations. The Bank’s track record, as you know so well here in Japan, has been excellent through all of the 85 years that it is celebrating this year. And still is.  

Norway is, against the backdrop of global political and economic uncertainties, an island of peace and prosperity with our triple-A rating as a country. Due not least to our enormous oil and natural gas resources that account for almost half of our exports in an increasingly energy hungry, especially fossil fuel hungry, world. Our petroleum export earnings fuel our sovereign wealth fund that has become the second largest in the World. It now stands at some 40 trillion Yen. That is one and a half times Norway’s GDP. We expect a GDP growth of 3.1 per cent this year. Our employment rate is low - 3.3 per cent.

Although Norway’s financial position is quite enviable, globally as well as in Europe, we are, of course, not an “island unto ourselves”. As Japan, we are affected by developments elsewhere, not least in those countries that are our main business and trading partners.

As you know, our triple-A rated Kommunalbanken is a Norwegian state instrumentality, owned entirely by the Norwegian state and the local government sector. It serves the important policy function of providing low-cost funding to Norwegian municipalities and promoting competition in the market for municipal loans. This facilitates in turn the efficient provision of public sector services in Norway’s welfare state.

With these words, it is my pleasure to give the floor to Kommunalbanken and Mr. Skouen for a short information film and his presentation, after which we will have some time for Q and A before walking across to my Residence for food and drink and where we can continue our discussions in a more informal setting.