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Borrowing oil money to Israel

With increasing military spending, Israel needs to borrow money abroad.


By Tarjei Leer-Salvesen tarjei@nytid.no

[bonds] In 2005, Norway doubled its lending of oil money to Israel. In this way, the country can finance, among other things, military rearmament and the construction of the disputed security wall around the Palestinian territories. NOK 184,5 million was the estimated value of the Norwegian "Israel AID" bonds at the beginning of the year, according to the bond portfolio that Norges Bank published this week together with the annual report for the Government Pension Fund – Global, better known as the Oil Fund.

This is more than twice as much as the previous year, when the stock was NOK 90 million.

A large part of the investments are made in other countries' government debt, and in this way Norwegian oil money has found its way to the Israeli state.

"Israel AID" is the talking name of the securities that Israel issues to raise much-needed capital. The country has enormous expenses for the time being. The wall alone is conservatively estimated to cost more than NOK 15 billion.

Last year, the same year that a red-green government took office and SV's finance minister Kristin Halvorsen called for a boycott of Israel, the state fund bought Israeli shares for the first time. Norges Bank invested a total of just under NOK 80 million in Hapoalim bank, the IT company Eblaze and. . .

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