Proposal to transfer Investment Fund to Faroese authorities submitted to Parliament

The proposal to transfer the Investment Fund to the Faroe Islands authorities has been submitted to the Parliament.

The Investment Fund has been under Danish governance since its establishment in 1964. A new clause, proposed as section 1a, will be added to Danish law, clearly stating that “the Fund is transferred to the Faroese authorities.” The law is set to come into effect on January 1, 2025.

Although the Investment Fund is formally Danish, the Faroese government has appointed the fund’s board since 1976, when it was also relocated to the Faroe Islands.

With the transfer, Faroese authorities will assume full responsibility for the fund, including financial oversight. This means they will decide how the fund is managed and how its resources are utilized.

Originally, the Investment Fund was established to provide financing for infrastructure investments in the Faroe Islands. The fund currently holds assets totaling approximately 700 million Danish kroner.

In January, when the Prime Minister and the Minister of Finance signed an agreement that the Investment Fund would be transferred to Faroese control, Aksel V. Johannesen expressed that half of the fund’s assets would be allocated for a new airport terminal at Vága Airport, while the other half would be reserved for the potential Suðuroy Tunnel project. He noted that this would require political support in the Parliament.

The proposal submitted to Parliament makes no mention of how the funds from the Investment Fund will be utilized.