Nobel Prize strenuous because of the economic recession

The Nobel Foundation will consider the possibility of reducing the prize money for winners, as a result of the global financial crisis.

Until now, Nobel laureates have always received 10 million Swedish kronas (SEK), equivalent to 1.5 million USD at current exchange rates. But, according to Reuters, the economic downturn makes Nobel Fund's investment more difficult.

'It is possible that we will be forced to reduce the prize money for future winners. We overcame the financial storm, but still can't avoid the wobble, 'said Michael Sohlman, executive director of the Nobel Foundation, at a press conference on December 5.

According to Sohlman, the assets managed by the Nobel Foundation fell by nearly 20% in the 2008 fiscal year due to the financial crisis, and only slightly recovered this year.

Mr. Michael Sohlman, executive director of Nobel Fund.Photos: wikimedia.org.

Nobel Prizes for physics, chemistry, medicine, literature and peace were established by the will of Alfred Bernhard Nobel - a famous Swedish chemist in the 19th century. The first prizes were awarded in 1901.

When he was alive, Nobel advocated the use of SEK 31 million worth of assets ($ 4.5 million) that he spent on prize funds to be used to invest in safe securities. Every year the return on investment will be divided equally for prizes. The value of the Nobel Fund's investment amounted to SEK 2.8 billion (US $ 407.2 million) by the end of December last year.

Reuters said that the total amount spent for Nobel prizes this year was around SEK 120 million (US $ 17.5 million) - including prize winners, expenses for a luxurious party in Stockholm city ( Sweden) and the cost of the Nobel Peace Prize ceremony in the city of Oslo (Norway). This year's Nobel Peace Prize winner is US President Barack Obama.

The Nobel Foundation's website (nobelprize.org) says that the prize value is kept stable or increases year by year since 1950.