As of 24 March. On Saturday, March 21st, the Storting (Parliament) agreed to the government's proposal for a loan and guarantee scheme for business with a total framework of NOK 100 billion , of which NOK 50 billion is earmarked for small and medium-sized enterprises.

State loan guarantees for new loans to small and medium-sized enterprises

• The government has proposed to establish a state guarantee targeted at bank loans to small and medium-sized enterprises suffering losses as a result of the extraordinary situation arising from the spread of the corona virus
• An initial package of NOK 50 billion is proposed - will be increased if needed
• The state will cover up på 90% of the loans
• The loans will be processed through the banks in their own credit processes
• The NOK 50bn will be distributed amongst banks based on their market share in SMB customers

Conditions: state guaranteed loans

• Loans can have a maximal duration of 3 years
• In case of default, the state will stand for 90% of the losses and the bank 10%

Reinstating the Government Bond Fund

• The Government has proposed to reinstate the Government Bond Fund
• This will primarily help larger companies, as they raise their funding from the bond market
• The Government Bond Fund will provide up to NOK 50 billion, to be invested in bonds issued by Norwegian companies
• This was supposedly used during 2008 with good results
• The fund will be managed by Folketrygdfondet, which is the state’s fund manager for the Government Pension Fund Norway
• Voted on in parliament 20 March