Cyprus could create a leaky hydrocarbons wealth fund - FINANCIAL MIRROR

As of 30 June 2018

24 February, 2019

A long-delayed bill creating a Cyprus hydrocarbons fund will be put to parliament for a vote, with the aim of utilising profits from natural gas for future generations to enjoy but there are fears the cash cow will be abused.

The government submitted the bill in 2015 but it got shelved as it fell victim to politics and confrontation between the parties.

While a general consensus was built amongst political parties that natural gas revenues should be set aside for future generations through the creation of the Hydrocarbons Fund, economists and some MPs have expressed fears that it will become a “fiscal hole filler”.

A University of Cyprus professor and energy policy expert said that while MPs are ready to vote in the bill, extra powers will be given to the Finance Minister and loopholes introduced.

“My fear is that we may see the Hydrocarbons Fund having the same fate as the Social Insurance Fund reserves which have been spent through the state budget,” said UCY professor Constantinos Papaloucas.

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.