Israel natural gas wealth fund expected to begin around 2020 - REUTERS

Tue Apr 4, 2017 | 8:39am EDTAri Rabinovitch; Editing: Tova Cohen

Israel's planned sovereign wealth fund, meant to safeguard billions of dollars in natural gas revenue, will begin operating around 2020, Bank of Israel Governor Karnit Flug said on Tuesday.

The central bank is overseeing establishment of the fund, which will be invested abroad to avoid a major influx of foreign currencies that could strengthen the shekel and undermine export industries.

Only income from the fund will be used domestically, for things like national projects and emergencies.

MPs present wish-list of how to spend future gas revenue - CYPRUS MAIL

March 6, 2017
Elias Hazou

MPs on Monday began an article-by-article discussion of a government bill governing the establishment and operation of a National Investment Fund to manage future hydrocarbons proceeds.

The representatives of the parties each had their own ideas as to how the funds should be invested.

Akel [left] called for the addition of a reference where part of the funds would be diverted to ‘public-interest’ investments.

The party would also like to insert a provision allowing funds to be invested in developing the hydrocarbons industry on the island; as it stands, the bill makes no such reference.

Concerns over future gas fund spending - CYPRUS MAIL

February 20, 2017

Elias Hazou

An annual revenue of up to €600m is expected from the sale of hydrocarbons, 12 years after production begins at the Aphrodite gas field (in block 12).

Questions still hang over the precise manner in which investments will be made using future oil and gas revenues, MPs said on Monday.

Lawmakers were continuing discussion of a finance ministry bill on the establishment and operation of the National Investment Fund, which will manage hydrocarbons proceeds.

They asked the ministry to come back next time with specifics on how revenues would be invested.

What Israel can learn from Norway - GLOBES

27/10/2016, 18:30
Aharon (Orni) Izakson

Norway's experience in managing its oil and gas revenues and building its energy industry should guide Israeli policy makers.
It was reported recently that in an offering of shares and warrants by Israel Discount Bank (TASE: DSCT), Norges Bank, the central bank of Norway, bought shares to the tune of NIS 200 million, and holds 2.6% of the Israeli bank. Norges Bank manages the largest sovereign wealth fund in the world, the Government Pension Fund Global, worth some $890 billion, deriving from oil and gas profits. The fund's capital is being kept for a rainy day, such as when Norway's oil and gas reserves are depleted. The Norwegian government is allowed to include in its annual budget up to 4% of the value of the fund's holdings.

Cyprus too small for gas fund investment - CYPRUS MAIL

September 26, 2016 Elias Hazou

The draft bill relating to the creation and operation of a National Investment Fund, administering future revenues from natural gas sales, expressly prohibits investments inside Cyprus, to avoid creating a bubble.

Once gas revenues start flowing in – not for years to come – the fund is expected to aggregate hundreds of millions. But investing those amounts into the Cypriot real estate market, for example, would wreak havoc with property prices given the relatively small size of the local economy.

Rather, the fund’s reserves will all be invested abroad, be it in property or in triple A-rated government bonds.

Can natural gas pay for a solution? - IN CYPRUS / CYPRUS WEEKLY

25/06/2016

Cyprus gas funding a peace deal was a hot topic with statements and counter-statements by the President, the Foreign Minister and many others, such as:

Studies in progress to fund settlement from proceeds from natural gas Natural gas to contribute to the funding of the cost of settlement;

Cyprus FM says gas could partly fund reunification;

Government denies Foreign Minister statements on gas;

President: We will not use natural gas to pay others’ obligations;

President: A minor part from the natural gas proceeds could be used to fund the solution, The President confirms in all respects that the Foreign Minister statements are in-line with government thinking;

Cabinet approves gas fund - INCYPRUS / CYPRUS WEEKLY

incyprus — 13/06/2016

The cabinet has agreed on a National Investment Fund to be established to handle future revenue from the management of natural gas resources, said Finance Minister Harris Georgiades on Monday.

Speaking to journalists at the Presidential Palace after the end of the cabinet meeting, Georgiades said that the legal proposal they agreed upon is the result of systematic work and advice from experts.

The legal plan, said Georgiades, stipulates procedures of transparency, multiple checks and balances, but also specific rule in how the revenue will be managed. He also said that the revenue will be used to benefit future generations, either by reducing the public debt, or by going into an investment fund which will make safe investments outside of Cyprus.