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Submitted by Birgit on

Thank you for the comment on our analysis. Good questions. In our model we do not project a fiscal response from Government in form of using the reserve fund. If we assume the same Government budget as in base case, the consolidated budget deficit would reach in the oil price drop scenario to -1.3 percent of GDP in 2014. There are different ways Government could react, including adjusting expenditures as much as possible, increasing the debt level or using parts of the oil reserve fund. If we assume that all would be covered by oil reserve fund resources, the effect would be easy to calculate: For the base case scenario the reserve fund was 4.8 percent of GDP at end-2013 and 4.9 percent of GDP at end-2014.