Norway Fund CEO Warns of Global Debt Risks

Nicolai Tangen, CEO of Norway's $1.7 trillion wealth fund, has expressed concerns about rising global sovereign debt, warning that insufficient action to mitigate this debt could destabilize financial markets. Despite the fund's impressive profit of 1.48 trillion crowns ($138 billion) in the first half of the year, Tangen highlighted that the current levels of debt are unprecedented, with little global willingness to address them. He noted that while he does not foresee an immediate crisis, the potential for sudden financial turmoil is real, comparing it to the UK's market plunge in 2022 due to unsustainable fiscal policies. Tangen emphasized that the debt issue affects many major economies, making markets less robust. He indicated that the fund has limited options to reduce risk without impacting the broader financial system, but it is committed to alerting the Norwegian state to these dangers.