The total amount of loans calculated at the end of 2018 is significant - just over NOK 65 million. It is also worth noting that loans from financial institutions alone amounted to over NOK 5300 billion. Norges Bank conducted a survey of Norway's top public financing companies 2019 to gain a better perspective. Public financing based on loans dominates the Norwegian market. This type of financing grew rapidly in 2018 and continues to be popular. Why is this happening?
Public funding in Norway - to help the Norwegian economy
It goes without saying that this is a great way to help the Norwegian economy and raise it up again. Especially after these difficult months. On the other hand, public funding always comes with some risk - always consider the benefits and risks. What are the advantages of such a solution?
- strengthening the investment potential in infrastructure and public services sector. The involvement of private capital in concession projects allows you to use the accumulated capital use the funds for valuable purposes and innovative ideas. Especially if public funds are running out.
- safer eventual risk allocation.
- faster execution and implementation of projects - the private sector can make a given service available at any time.
- usually a better quality of service - thanks to public funding, you can invest in a truly amazing and innovative project. Having the right funds and a group of specialists with you.
Public financing in Norway - why is the risk factor important?
We distinguish risk factors in the following areas:
- construction – design flaws, delays in project implementation,
- availability related to geodetic conditions or problems with increasing costs remuneration, the emergence of new technologies,
- demand – changes in the business cycle, demographic changes, changes in competition, technology, changes in inflation, interest rates or exchange rate.
Norwegian economy it is reborn again. In addition, there are new trends that may be specific a lifeline in difficult times. For this reason, we will observe new influences and new implementations with great interest. We will be happy to talk about them on the Radio Wataha and on our website. Stay with us!
Do you like the article? Be sure to read: Deferring the payment of invoices - an opportunity for those in debt!
Source of information: https://www.dagensperspektiv.no/
