Norwegian wealth fund gets reprieve as recovery curbs withdrawals

Oslo

THE Norwegian government cut expected withdrawals this year from its US$930 billion wealth fund by 41 per cent as an economic recovery gathers pace in western Europe's largest crude producer.

The centre-right coalition aims to withdraw 71.5 billion kroner (S$11.7 billion) from the fund this year, down from an original estimate of 121.2 billion kroner, according to a revised budget released in Oslo on Thursday. The structural oil-corrected deficit, or the amount of oil cash Norway will spend, will be cut by almost five billion kroner to 220.9 billion kroner.