Nobel Foundation Suffers Huge Losses Because of Obama

For the first time in history, the Nobel Foundation announced a possible reduction of its prize amount. Due to financial losses the Foundation suffered because of the global crisis, luxurious ceremonies and banquets in Stockholm, 2009 laureates might be the last ones to receive $1.5 million. This year alone, the Nobel Foundation spent $17.5 million for the reception where President Obama is to receive his Nobel Peace Prize.

Photo: Nobel Foundation Suffers Huge Losses Because of Obama

Nobel Foundation Suffers Huge Losses Because of Obama

Financial turmoil caused the Nobel Foundation to lose one fifth of its funds. The Foundation has not managed to patch the budget yet, Vesti reports.

Michael Sohlman, the Executive Director of the Nobel Foundation, suggested that this year the security expenses at the Oslo ceremony could be higher because of President Obama presence. He added that he would have better information when the total bill is prepared.

The Novel Prize Award Ceremony will take place on Thursday, December 10. Twelve laureates who will receive the awards have already arrived to Sweden accompanied by their families, friends, and colleagues. This year, each Nobel laureate was allowed to bring no more than 14 guests in their official delegation.

Traditionally, 37 thousand flowers have been delivered to Stockholm from San Remo, Italy, where Nobel spent his last years. The flowers will decorate the halls where the prizes will be awarded.

Initially, Alfred Nobel bequeathed 31 million Swedish crowns as the awards capital. The value of the invested capital at the end of December last year was 2.8 billion crowns ($407.2 million). The Nobel Prize for each category (medicine, literature, chemistry, physics, and peace) amounts to 10 million crowns ($1.5 million). The Nobel Prize in Economics has been awarded since 1969, and is financed by The Bank of Sweden, not the Nobel Foundation.

Vesti