– This was a loan they took out in breach of Norwegian law, releasing thus not away. They broke the law, and therefore, this was a disaster, says editor in Helgelands Blad, Morten Hofstad, NRK.
As a journalist Finansavisen he was the man who in 2007 revealed that eight Norwegian municipalities lost huge sums on so-called hedge funds.
Today it was announced that DNB and seven municipalities Hattfjelldal, Hemnes, Narvik, Rana, Vik, Kvinesdal and Bremerton has negotiated a settlement agreement.
Agreement implies that the municipalities pay 650 million dollars as final settlement to DNB, against the original claim of 1.3 billion.
This means that the trial, which was scheduled to start on September 21 in Oslo District Court, thus lapses. A reasonable outcome, believes Hofstad.
Sensible scroll up
– They could, and probably would, lost even more if they had ended up in court.
– We have worked hard to get a settlement with DNB, says Rana Mayor Kai Henriksen (H). Photo: Bjørn Erik Rygg Lunde / NRK
The municipalities have committed a very clear offense by taking up this loan and could easily have lost well over a billion event of a lawsuit. Now scroll the rather up and be done with the matter.
– Do you think they believed they had a bad case?
– Yes , otherwise they could have taken the matter to court. This is a calculated balancing of several factors.
When the settlement was known earlier today said Rana Mayor Kai Henriksen told NRK that they are happy that the matter is now out of the world.
Rana is the municipality must pay the biggest piece of cake to DNB, with its 182.7 million dollars.
– We are very pleased that it has come a settlement in this matter, it has ridden the municipality and all municipalities that have been involved for eight years, so to come to a conclusion on this matter has been incredibly important for us.
– The final loss
Editor Morten Hofstad stresses that local authorities have little reason to cheer.
– I’ve heard that some mayors today have tried to produce this as a victory. When the case started in autumn 2007 claimed the municipalities that they had been ripped off, he says, and recalls that the requirement of DNB was at 825 million plus interest.
– When municipalities are now part of a settlement with a so marginal discount, so this is the definitive loss of the municipalities in this story.
– Had you seen for this development when you revealed the case eight years ago?
– Yes, already in January 2008 said Law Department in the Ministry of Justice that the loan was in violation of Norwegian law. Thus, municipalities are forced to sell their investments. It is the core of the matter, says Hofstad.
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