Oslo - Norwegians should prepare for a drawn-out economic crisis, Prime Minister Jens Stoltenberg said Friday.

The effects of the current financial crisis were likely to continue well into next year, he warned.

"Unemployment is increasing, many companies are struggling and the bank and credit markets are not functioning normally," he said.

Stoltenberg said the global economic situation was "serious" and the downturn was the worst in decades.

Oslo - The Norwegian central bank on Wednesday cut its lead rate a further 1.75 percentage points to 3.00 per cent, which was in line with market expectations.

The new cut takes effect Thursday, the central bank said.

The decision to lower rates was taken against the backdrop of weaker growth in Norway and internationally since the end of October, Norges Bank Deputy Governor Jan F Qvigstad said in a statement.

Meanwhile, "inflation is subsiding faster than expected," he added.

Oslo - Norway has decided to contribute a field hospital to the incoming United Nations mission in Chad, the Norwegian Defence Ministry said Tuesday.

The UN Mission known as MINURCAT II will also comprise neighbouring Central African Republic, and was due to begin as of March 15 next year when a European Union force leaves the region.

The UN mission was aimed at protecting civilians living in and near refugee camps, and also to protect aid workers in eastern Chad.

Oslo - A former Norwegian top diplomat who in 1985 was given a 20-year sentence for espionage failed Monday to get a new hearing.

Arne Treholt's appeal was rejected by the Norwegian Criminal Cases Review Commission which conducted a lengthy investigation, commission chairwoman Janne Kristiansen said. One of the five members on the panel favoured a new review, Kristiansen said.

The independent commission was created in 2004 and can order a review if "new evidence or new circumstances" come to light or if a criminal offence was committed by investigators, prosecutors, defence lawyer or others.

Oslo - House fires claimed ten lives across Norway this weekend, according to authorities.

Four bodies of people aged between 17 and 22 were found in the remains of a burned-out single-family home on the island of Hery on Sunday. The deceased had been attending a party in the house. Authorities said there might be further bodies, since 20 people had attended the party. No cause for the blaze had been established.

Oslo - Six people died in a fire in a residential building in the Norwegian capital Oslo early Saturday, possibly as a result of the fire alarm being switched off and the only emergency exit being nailed shut, according to the police.

Thirty-three residents of the building were caught unawares by the fire as most were asleep, the police said.

As the fire service arrived three minutes after the alarm was raised at 3:42 am, many of the mostly young residents were sitting dazed on window sills - some in just boxer shorts and T-shirts - waiting to be rescued by ladder.