Increase in Heritage and Stabilisation Fund
Friday 29th January, 2010

There was a marginal increase in the size of the Heritage and Stabilisation Fund in 2009. And this happened notwithstanding the recession experienced in the international economy during last year.

The report on the operations of the Fund notes that the value of the fund increased during last year from US$2.8 billion to US$2.9 billion.

According to chairman, Sam Martin, the growth in the fund was solely on the basis of returns achieved on investments made by the Fund.

He says this was so because Government did not make deposits to the Fund. 

The reason given for the absence of contributions from the Government was the dramatic fall in oil and gas prices and the decline in demand for energy products in the recession of last year. 

Government's contributions to the fund are determined by the amount of revenues received from the energy sector over a specified level.

The Chairman says that with economic recovery expected to be slow during this year, there is not likely to be rapid growth in the size of the Fund by the end of the year.